Stock market today: Dow, S&P 500, Nasdaq waver amid earnings rush, Bessent confirmation hearing

Published On Jan 16, 2025, 1:34 PM

US stocks fluctuated on Thursday after a significant previous day's rise, driven by strong bank earnings and easing inflation data. Major banks like Bank of America and Morgan Stanley reported improved profitability, stimulating optimism. Retail sales were slightly below expectations, which might influence future interest rate decisions by the Federal Reserve. The confirmation hearing for Treasury Secretary nominee Scott Bessent also drew attention, particularly regarding his views on sanctions and economic policies under the upcoming Trump administration.

Stock Forecasts

XLF

Positive

The positive results from major banks indicate a revival in Wall Street, particularly in investment banking and trading divisions, suggesting that the financial sector could continue to thrive. If the Federal Reserve follows through on interest rate cuts, financial institutions may benefit.

QQQ

Negative

Concerns over Apple and Tesla's declining stock due to sales worries and discounts signify potential weakness in the tech sector. The drop in these stocks could influence investor sentiment towards technology stocks more broadly, underscoring a bearish outlook.

XLY

Negative

With retail sales growth slowing, there might be caution among investors regarding consumer discretionary stocks in the upcoming quarters. This could lead to a bearish outlook on consumer-related ETFs.

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QQQ
XLF
TGT

Fresh inflation data released Wednesday is likely to keep the Federal Reserve on pause during its next policy meeting this month, even though a new reading did show some signs of easing.

XLF
VFH

The Consumer Price Index rose 2.9 percent from a year earlier, but a measure of underlying inflation was more encouraging.

XLF
XLP