Markets Grind Higher as Tech Earnings Take Center Stage

Stock futures edged higher Thursday as investors reacted to major tech earnings and the Federal Reserve’s decision to keep interest rates unchanged. Gold and silver reached new highs.

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Major Indexes: S&P 500 higher, Nasdaq higher, Dow flat, Russell 2000 higher

Leading Sectors: Communication Services, Energy, Financial, Materials, Consumer Discretionary, Health Care, Utilities

Lagging Sectors: Technology

Meta Platforms (META): Meta delivered strong earnings and revenue, and gave an upbeat sales outlook that came in well above Wall Street expectations. Advertising and core business performance impressed, though losses in its Reality Labs division were larger than expected.

Southwest Airlines (LUV): Southwest raised long-term profit expectations after revamping its business model. The airline now expects meaningfully higher earnings in 2026 than analysts had forecast.

Tesla (TSLA): Tesla posted better-than-expected quarterly earnings and revenue. However, full-year revenue declined for the first time in company history, tempering some enthusiasm.

Caterpillar (CAT): Caterpillar reported a strong earnings and revenue beat, driven mainly by a surge in power and energy equipment sales.

IBM (IBM): IBM exceeded expectations on earnings and revenue, with strength in software and infrastructure. Management highlighted rapid growth in its generative AI business, which has become a major contributor.

Royal Caribbean (RCL): Royal Caribbean issued stronger-than-expected profit guidance for the current quarter. While revenue missed slightly last quarter, earnings met expectations.

Dow (DOW): Dow posted revenue in line with expectations and delivered better-than-expected profitability, though investors focused on mixed overall results.

ServiceNow (NOW): ServiceNow beat earnings and revenue expectations and issued solid guidance, but the stock remained under pressure amid broader investor concerns about AI impacting software margins.

Microsoft (MSFT): Microsoft beat earnings and revenue estimates, but cloud growth slowed and management issued softer margin guidance, which weighed on sentiment.

Las Vegas Sands (LVS): Las Vegas Sands posted earnings and revenue above expectations, but weaker-than-hoped results from its Macau operations disappointed investors.

L3Harris (LHX): L3Harris beat earnings estimates but fell short on revenue, leading to investor concerns despite solid profitability.

Honeywell (HON): Honeywell delivered better-than-expected earnings but missed on revenue, resulting in a mixed market reaction.

International Paper (IP): International Paper announced plans to split into two separate companies, separating its North American and European businesses. Revenue topped expectations, though earnings missed.

Lockheed Martin (LMT): Lockheed Martin exceeded earnings and revenue expectations and raised its full-year outlook, supported by strong defense demand.

Nasdaq (NDAQ): Nasdaq beat expectations on both earnings and revenue, reflecting solid performance across its exchange and data businesses.

Mastercard (MA): Mastercard reported strong revenue and profit growth, reflecting continued strength in global payments activity.

Nokia (NOK): Nokia beat earnings and revenue expectations but issued a softer outlook. The company also announced a major reorganization aimed at improving efficiency.

Lam Research (LRCX): Lam Research delivered strong earnings and revenue growth, citing AI-driven demand. Management highlighted long-term industry growth but noted capacity constraints may push some gains into later periods.

Celestica (CLS): Celestica beat quarterly expectations and raised its long-term outlook. The company also announced a major U.S. manufacturing investment focused on advanced data-center hardware.

Waste Management (WM): Waste Management reported solid full-year growth and strong margins but slightly missed quarterly expectations. The company issued optimistic guidance and outlined significant shareholder returns.

LendingClub (LC): LendingClub posted a modest earnings beat and strong loan growth. Management outlined accounting changes coming next year that may create short-term volatility.

Altria (MO): Altria missed earnings expectations but exceeded revenue forecasts. The company raised its outlook for next year despite ongoing volume pressures.

Blackstone (BX): Blackstone reported strong earnings, record investment inflows, and declared a dividend, highlighting continued strength in alternative assets.

Viavi Solutions (VIAV): Viavi delivered a strong earnings beat, showing meaningful improvement compared to the prior year.

Virtu Financial (VIRT): Virtu posted strong earnings and revenue growth, capped by a dividend declaration, reflecting favorable trading conditions.

SAP (SAP): SAP beat earnings and revenue expectations, but investors focused on weaker cloud backlog growth and softer forward guidance.

Joby Aviation (JOBY): Joby announced large stock and convertible note offerings to raise capital, increasing dilution concerns despite strengthening its balance sheet.

Whirlpool (WHR): Whirlpool missed earnings and revenue expectations and reported sharply lower profits, though it provided guidance for improved performance next year.

First Solar (FSLR): First Solar declined after an analyst downgrade, reflecting more cautious expectations for near-term performance.

(Stocks showing elevated volume and notable price movement)

Gainers: AAOI, STX, AVT, SYY, PTRN, ZM, CGON

Losers: ABT, CVLT, HUM, PAR, PINS, MMYT, CEG, MNDY, FIG

Disclaimer: This newsletter is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consider consulting a financial professional before making investment decisions.