Today, Wall Street is stable, hovering near record highs, with stocks holding relatively steady despite mixed profit reports from U.S. companies. The S&P 500 is up 0.1%, close to its recent record, while the Dow has fallen 106 points, or 0.3%, and the Nasdaq composite is up 0.3%. Macy’s saw a rise after reporting better-than-expected results and announcing a reorganization. The earnings reporting season is winding down, and there is optimism that the strong U.S. economy will support profit growth this year. Treasury yields are mixed in the bond market.
Investors are cautious after the recent New Year’s rally. Futures for the S&P 500 and the Dow Jones Industrial Average are up slightly before the bell.
The focus remains on corporate earnings, with updates expected from several big names this week. Macy’s plans to close 150 stores after reporting losses, and Lowe’s has posted sales and profits that beat expectations. This week, Best Buy, Papa John’s, TJX, Salesforce.com, and HP are among those expected to report.
The recent market rally began last October amid hopes of cooling inflation leading to potential interest rate cuts by the Federal Reserve. However, stronger-than-expected economic reports have tempered expectations for rate cuts. Investors are now looking for signs of strengthening profits to support stock prices.
In Europe, markets are mixed, with gains in Germany and France and a slight rise in the UK’s FTSE 100. Asian markets were also mixed, with Japan’s Nikkei flat, Hong Kong’s Hang Seng up, and South Korea’s Kospi down. Oil prices are down slightly, and the dollar has weakened against the yen but strengthened slightly against the euro.
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