Stock Indexes Nearing 5,000-Mark Amid Earnings and Jobs Data
Stock Indexes Muted as U.S. Nears 5,000-Point Mark
U.S. stock indexes were quiet on Thursday, inching ever closer to the 5,000-point milestone. Investors were busy analyzing major corporate earnings reports, softer-than-expected jobs data, and statements from policymakers regarding potential interest rate cuts.
Disney and Spirit Airlines Drive Sector Gains
Disney (NYSE:) saw an 8.5% increase, propelling communication services to one of the top S&P 500 sectors. The media giant’s market-beating profit, gaming investment, and plans to launch an ESPN streaming service in 2025 were well-received by investors. Additionally, Spirit Airlines (NYSE:) surged 3.0% after reporting a narrower-than-expected loss and anticipating positive cash flow from the second quarter.
Corporate Earnings and Jobs Data
Over half of the S&P 500 companies have released their quarterly earnings, with 81.2% surpassing expectations. On the economic front, a Labor Department report revealed a dip in Americans filing for state unemployment benefits during the week ended Feb. 3, coming in lower than economists’ forecast.
Market Expectations and Economic Reports
Jason Pride, chief of investment strategy at Glenmede, highlighted the tight labor market and recent economic reports holding up better than expected. He also noted the evidence suggesting that inflation hasn’t settled down to 2%, while Richmond Fed President Thomas Barkin pointed out the difficulty of making accurate seasonal adjustments around the beginning of a new year.
Market Performance and Industry Highlights
On Wednesday, the benchmark S&P 500 achieved new record highs, edging closer to 5,000 points. The Nasdaq is also nearing its all-time high, driven by an ongoing rally in technology and tech-adjacent stocks. At 9:46 a.m. ET, the was down 1.96 points, the S&P 500 was down 4.24 points, and the was down 8.23 points.
Company Stock Movements
New York Community Bancorp (NYSE:) faced a 7.7% decline after appointing a new executive chairman and considering reducing exposure to the troubled commercial real estate segment. Arm experienced a 38.7% surge after forecasting quarterly sales and profit above expectations. However, PayPal (NASDAQ:) dropped 9.4% after a forecast of flat growth in adjusted profit for the current year overshadowed its market-beating earnings report.
Market Trends and Performance Indicators
Declining issues outnumbered advancers on the NYSE and Nasdaq. The S&P index recorded 33 new 52-week highs, while the Nasdaq recorded 62 new highs and 41 new lows.
