Wall Street’s major indexes saw modest gains on Thursday as upbeat earnings from leading companies lifted investor confidence. Markets remained cautious amid ongoing trade policy uncertainties under U.S. President Donald Trump.

Key Market Movers

• Eli Lilly (LLY) rose 2.5% after issuing an annual profit forecast exceeding expectations.
• Tapestry (TPR), parent company of Coach, surged 15.3% following a raised sales and profit outlook.
• Philip Morris International (PM) jumped 8.6% after posting stronger-than-expected quarterly earnings.
• Honeywell (HON) dropped 4.4% after announcing plans to split into three independent entities and issuing a weaker 2025 forecast.

Stock Market Performance

As of 9:52 a.m. ET, the key indexes posted slight gains:

• Dow Jones Industrial Average: +8.51 points (0.04%) at 44,892.21
• S&P 500: +13.84 points (0.23%) at 6,075.32
• Nasdaq Composite: +45.93 points (0.23%) at 19,737.59

Consumer staples led sector gains, rising 0.9% to reach a seven-week high.

Market Trends & Economic Outlook

Markets were volatile earlier in the week after Trump announced new trade tariffs. However, investor fears eased as tariffs on Mexico and Canada were temporarily suspended for a month. Analysts remain cautious about potential counter-tariffs from China.

Peter Andersen, founder of Andersen Capital Management, noted,
“With daily executive orders and shifting policies, markets continue to swing between optimism and pessimism.”

Federal Reserve & Interest Rates

• Traders anticipate the Federal Reserve will hold rates steady in March but expect a rate cut in June, according to the CME’s FedWatch tool.
• Analysts warn that Trump’s tariffs could increase inflation, slowing the Fed’s rate cut plans.

Upcoming Jobs Report

• Weekly jobless claims showed a moderate increase.
• The January nonfarm payrolls report set for Friday will provide further labor market insights.

Tech Stocks Under Pressure

• Qualcomm (QCOM) fell 4.9% as executives warned of stalled sales growth in its patent-licensing business after a deal with Huawei expired.
• Ford (F) declined 6.9%, forecasting $5.5 billion in losses from its EV and software operations in 2025.
• Skyworks Solutions (SWKS) plunged 25.6% due to declining mobile segment revenue and weaker-than-expected earnings projections.

Market Breadth & 52-Week Highs

• Advancers vs. Decliners:
  • NYSE: 1.62-to-1 ratio
  • Nasdaq: 1.12-to-1 ratio
• S&P 500: 25 new 52-week highs, 5 new 52-week lows
• Nasdaq Composite: 74 new highs, 37 new lows

Final Thoughts

With Wall Street 1% away from all-time highs, corporate earnings and economic data will play a crucial role in shaping market sentiment. Investors are closely watching trade policies, Fed decisions, and job market trends to navigate 2025’s evolving economic landscape.

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