Stock futures rise ahead of more earnings and data

US stocks rose on Thursday as investors digested the release of GDP data and another round of corporate earnings.

S&P 500 Index (^ The Salafist Group for Preaching and Combat) by 1.1%, while the Dow Jones Industrial Average rose (^ DJI) added 0.6%. Nasdaq Technology Heavy Composite (^ ix(up approximately 1.8%, driven by a jump of over 10% from Tesla)TSLA).

The yield on the 10-year US Treasury rose to 3.497% from 3.461% on Wednesday. The dollar index rose 0.2 percent to $101.82.

The gross domestic product of the United States has grown 2.9% annual rate In the fourth quarter of 2022, higher than expected, according to Economic Analysis Office. Personal consumption expenditures (PCE), which affected two-thirds of domestic activity, increased 2.1%, a slowdown from the previous quarter’s 2.3%.

Meanwhile, initial jobless claims fell again to 187,000, the lowest level since April 2022. Together, the data represented More signs of resilience the US economy amid fears of a possible recession.

New home sales rose 2.3% last month to a seasonally adjusted annual rate of 616,000, according to one report. Thursday from the Census BureauWhile mortgage rates fell to 6.13% each Freddie Mac.

The market’s movements on Thursday came after stocks came back from Wednesday’s session lows, Semi-fixed session termination As 12 industrial groups out of 24 regions were positive for the day.

share of bed bath and beyond (BBBY) sunk on Thursday After the company said in the SEC file It does not have enough cash to pay off its debts and has defaulted on its line of credit with JP Morgan.

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Tesla (TSLA) also took the lead on the corporate front with shares gaining more than 10% after the company Reported strong earnings. Its results showed that the electric vehicle manufacturer posted better-than-expected profits in the last quarter, generating $3.7 billion in net income against $24.3 billion in revenue. Tesla announced that it will deliver about 1.8 million vehicles this year, which is a 37% jump in production.

International Business Machines Corp. (ibm) joined the wave of layoffs in the company, Saying it will cut off About 3900 workers. The cuts will come from Kyndryl Holdings, the IT services company that IBM spun off last year. As a result, the company said it would require $300 million in the first quarter to pay employee termination costs.

The infrastructure and hybrid cloud company also reported fourth-quarter earnings that were just above analyst expectations, with revenue of $16.69 billion. Adjusted earnings per share came in at $3.60, in line with analyst expectations. Shares fell 4% on Thursday.

facebook meta parent (meta) Shares rose after the news that the company I decided to restore Former President Donald Trump’s Instagram and Facebook accounts. The end of the ban triggered by the January 6, 2021 insurrection comes at the start of the 2024 presidential campaign season.

Elsewhere in stock movements, American Airlines (AALShares rose on Thursday after the company said that You expect profit For this year to exceed expectations as the industry is still in recovery mode.

Southwest Airlines (luvShares traded lower after the carrier reported a loss of $220 million in the fourth quarter because of it Holiday breakdown last month This led to the cancellation of thousands of flights. Southwest has lowered its revenue forecast for the year to $350 million as the company deals with ongoing cancellations and reduced bookings.

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A flight board shows canceled Southwest Airlines flights at Pittsburgh International Airport in Pittsburgh, Pennsylvania, US, December 29, 2022. REUTERS/Brian Snyder

A flight board shows canceled Southwest Airlines flights at Pittsburgh International Airport in Pittsburgh, Pennsylvania, US, December 29, 2022. REUTERS/Brian Snyder

Comcast shares (CMCSA) was flat after the media company reported fourth-quarter earnings that beat expectations with revenue of $30.55 billion. Comcast said it lost 26,000 broadband customers due to Hurricane Ian, which hit the southeast coast in September. However, the company managed to turn around, in part by increasing its share of ad spend on its networks during the FIFA World Cup and the US elections in November.

BuzzFeed (BZFDShares rose after the company said it would do so Using the AI ​​tools provided by ChatGPT OpenAI creator to “improve” and “customize” its contents.

Finally, Toyota President Akio Toyoda announced on Thursday He will step down as CEO on April 1, to be replaced by current Chief Brand Officer Koji Sato. Toyoda will become the new chairman of the board.

Investors will continue to digest earnings season, with reports from names including Visa (Fifth) and intel (INTC) in the queue for Thursday.

chevron (CVX) to report on Friday morning, but announced early on that it would be Stock repurchases of up to $75 billion of its shares in the future.

While earnings season is in full swing this week, 173 companies reported as of Wednesday. Of those, six stocks posted triple earnings, according to Bespoke Investments. The triple play occurs when a company posts earnings that exceed the upper and lower bounds, while also raising guidance expectations.

Looking at the Federal Reserve’s decision next week, investors and economists got a decision from the Bank of Canada on Wednesday. The central bank raised its benchmark index by 25 basis points to 4.5% on Wednesday, the highest level in 15 years. It was an expected move that came with a clear signal that the Bank is ready to press a pause on the tightening cycle.

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“This is a conditional pause,” Bank of Canada Governor Tiff McClim clarified, but notes that officials are convinced that the current policy rate is sufficiently constrained to restore price stability.

Meanwhile, back home, Fed officials are going through a hiatus before the next monetary policy meeting, which begins on January 31st.

However, the The Washington Post reported On Wednesday, Federal Reserve Vice Chairman Lyle Brainard was considered a leading candidate to head the National Economic Council in the White House.. As it stands, Brainard’s position as governor and vice president currently runs through 2026.

Danny Romero, Yahoo Finance correspondent. Follow her on Twitter @employee

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