Stock futures are little changed with S&P 500 on three-day winning streak, near record high

Published On Jan 22, 2025, 6:02 PM

The stock market is currently experiencing stability with flat futures and the S&P 500 nearing record highs after a three-day winning streak. The positive market momentum is attributed to excitement over possible tax cuts and deregulation under the Trump administration, as well as strong performances during the fourth-quarter earnings season. Companies like Netflix, Knight-Swift Transportation, and Alaska Air have reported better-than-expected earnings, boosting their stock prices. However, Electronic Arts faced a downturn of over 10% after cutting its revenue guidance, signaling potential struggles within its gaming sector.

Stock Forecasts

SPY

Positive

The market remains buoyed by strong earnings reports and optimistic economic indicators. The excitement surrounding potential tax cuts may further enhance investor sentiment leading to continued upward momentum in major indices. Companies reporting robust earnings can expect positive stock movements, while those with disappointing forecasts like Electronic Arts might see declines.

ALK

Positive

With Knight-Swift and Alaska Air bouncing back following strong earnings, these stocks may appeal to investors looking for opportunities following their positive momentum. Both companies reported exceeding earnings expectations, indicating solid business performance and growth potential.

EA

Negative

On the downside, Electronic Arts' revision of its earnings guidance reflects vulnerabilities in its business, particularly in the gaming sector. This suggests potential challenges ahead, making it a less attractive option for investors at this moment.

Related News

With markets focused on President Donald Trump's initial policy decisions, an expected strong quarter of earnings reports could take a back seat in the market narrative.

SPY
ORCL
XLI

President Trump wasted no time in getting to work on his first day in office with a range of executive orders but the fiscal house he’s inheriting may prove more challenging to fix.

SPY
XLI

The president said the planned duties were a response to China’s failure to curb fentanyl exports.

XLI
SPY
VTI