Stock market today: Dow, S&P 500, Nasdaq mixed as Tesla, Meta, Microsoft diverge after earnings
US stocks opened Thursday on mixed footing as investors digested the latest megacap tech earnings ahead of Apple's report, while gold (GC=F) and oil (BZ=F) rallied amid fears of US military strikes on Iran.
The S&P 500 (^GSPC) picked up roughly 0.1%, while the tech-heavy Nasdaq Composite (^IXIC) moved the other way to shed roughly 0.5%. The blue chip-heavy Dow Jones Industrial Average (^DJI) rose 0.3% following Wednesday's muted performance.
The S&P 500 (^GSPC) is trying to again top 7,000 as Meta (META) shares surged over 9% early in the session, thanks to a surprisingly strong quarterly revenue outlook. The first of the "Magnificent Seven" megacaps to report earnings also plans to spend up to $135 billion on its data center build-out this year, a boost to its push to win the AI race.
While that AI ambition was welcomed, Microsoft (MSFT) stock slid over 10% despite its higher-than-anticipated capital spending as investors reacted to a slowdown in quarterly cloud sales growth.
Meanwhile, Tesla (TSLA) flipped to a loss at the open, as a strategy shift from EVs to robots and a quarterly earnings beat came with its first-ever decline in annual revenue. Investors are now gearing up for Apple’s (AAPL) quarterly earnings, due after the closing bell.
The tech moves took focus amid an escalation in US-Iran tensions, stoked by President Trump's warning to Iran that it must agree to a nuclear deal quickly or be hit with military strikes. Crude oil futures climbed to build on Tuesday's four-month high as US ships massed in the region. Gold surged, briefly topping a record $5,500 an ounce, as a declining dollar (DX-Y.NYB) added to the rush for shelter.
Wall Street is also digesting the Federal Reserve's first monetary policy decision of 2026, in which it kept interest rates unchanged. Eyes are on updates on weekly jobless claims, durable goods orders, and wholesale inventory figures on Thursday for clues to the economy to feed policy expectations.
Markets are pricing in two quarter-point rate cuts by year-end, per CME FedWatch, but an easing may not come before the end of Jerome Powell's tenure in May. The watch is now on for an announcement from Trump of his pick as the next Fed chair, which he has said will come soon.
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Jake Conley
US stocks diverge as Thursday trading opens
US stocks began Thursday's session trading mixed as the market reacted to the latest megacap tech earnings, with Apple's (AAPL) report to come after the bell.
Meanwhile, gold (GC=F) and oil (BZ=F) both picked up gains as President Trump hardened his tone against Iran, while the dollar (DX-Y.NYB) slid.
The tech-heavy Nasdaq Composite (^IXIC) shed around 0.6%, while the blue-chip benchmark Dow Jones Industrial Average (^DJI) picked up roughly 0.4%. The S&P 500 (^GSPC) hovered right above flat.
Investors will be watching to see whether the S&P 500 can cross 7,000 again after Meta (META) shares surged over 8% in the first minutes of trading, thanks to a surprisingly strong quarterly revenue outlook.
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Jake Conley
Oil prices jump in Iran risk premium, tighter than expected US commercial reserves
Oil prices jumped more than 3% in morning trading on Thursday as investors priced in the risk of potential escalations in Iran and the Strait of Hormuz, the crucial shipping route Iran largely controls.
Futures on Brent crude (BZ=F), the international pricing benchmark, flirted with $70 a barrel, while those on the US benchmark West Texas Intermediate (CL=F) crude gained to trade above $65.
The gains add to a run-up over the past month that has seen oil pick up roughly 15% as geopolitical risk premiums and cold weather have buoyed prices even as global onshore crude stocks have remained elevated.
"We expected Brent below $60/BBL by now and trending towards the low $50 range. Instead, geopolitical risk premium and physical supply losses have created a strong floor," Macquarie Group global energy strategist Vikas Dwivedi wrote in a recent note to clients.
Recent moves by the US military to position near Iran naval vessels and other equipment capable of striking inside the country have kept worries alive around potential disruptions to the Strait of Hormuz. The strait sees roughly 20 million barrels of oil, or a full quarter of global maritime oil trade, cross its waters every day. disruptions would have wide ripple effects on supply and pricing.
On top of the geopolitical risk, US commercial crude inventories in the US for the week ended Jan. 23 decreased by 2.3 million barrels from the previous week, according to data released Wednesday by the Energy Information Administration. Analysts at Macquarie had expected a growth of 900,000 barrels.
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Grace O'Donnell
Weekly jobless claims fall slightly to 209,000
US applications for unemployment benefits decreased modestly to 209,000 for the week ending Jan. 24, data from the Labor Department showed Thursday. Economists surveyed by Bloomberg expected jobless claims to fall to 205,000.
Continuing claims, a proxy for the total number of people receiving benefits, fell by 38,000 to 1.82 million, bringing the four-week moving average of continuing claims lower, to 1.86 million.
The data comes a day after the Federal Reserve held interest rates steady and Fed Chair Jerome Powell made the case that the labor market had "stabilized" after a period of gradual cooling.
While job gains have remained low, the unemployment rate has changed little in recent months, Powell said.
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Grace O'Donnell
Caterpillar stock rises as power equipment sales lift profits
Caterpillar (CAT) stock rose 1.5% in premarket trading after its earnings showed it's still a beneficiary of the AI data center build-out, but also that it expects to take another major hit from tariffs in 2026.
The construction and mining equipment maker reported an adjusted profit of $5.16 per share for the quarter, up from $5.14 per share a year earlier. Revenue rose to $19.1 billion from $16.2 billion. Those figures were above Wall Street's expectations of $4.71 earnings per share and revenue of $17.7 billion, according to S&P Global Market Intelligence.
The results were boosted by sales of power generation equipment to AI data center developers. Sales in Caterpillar's power and energy segment rose 23% year over year to $9.4 billion.
"I think what often gets overlooked is that AI is really an industrial story," Gabelli Funds portfolio manager Brian Sponheimer told Yahoo Finance. "As this data center rollout has happened, ... it's created structural demand for industrial-grade power solutions, and no company is really as well situated to drive that supply than Caterpillar."
However, Caterpillar is still facing headwinds from higher tariffs. Reuters reported that Caterpillar warned of a $2.6 billion tariff impact in 2026. In the fourth quarter, operating profit fell 9%, largely due to unfavorable manufacturing costs.
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Jenny McCall
Comcast sheds more broadband customers as wireless competition mounts
Media group Comcast (CMCSA) reported a loss in broadband customers in its fourth quarter earnings on Thursday. The decline missed analysts' estimates and was driven by competitors offering consumers more cost-effective, aggressive offers.
The stock edged higher before the bell on Thursday.
Reuters reports:
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Jenny McCall
Premarket trending tickers: Las Vegas Sands, Royal Caribbean and Whirlpool
Las Vegas Sands (LVS) stock fell as much as 10% during premarket trading. The casino operator's adjusted earnings fell short of analyst expectations.
Royal Caribbean (RCL) stock rose 6% before the bell on Thursday after the cruise operator's 2026 earnings guidance beat Wall Street estimates.
Whirlpool (WHR) stock sank 10% during premarket hours today after reporting an unexpected decline in sales.
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Jenny McCall
SAP shares plunge after cloud backlog, guidance disappoint
SAP (SAP) stock fell 15% before the bell on Thursday after reporting a cloud backlog and posting disappointing guidance.
The German firm said its cloud preorders reached $25 billion, but it missed analysts' estimates by about 1%. The delay has been blamed on a few "mega deals" that are taking longer to get up and running.
Reuters reports:
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Grace O'Donnell
Microsoft stock slips after Q2 earnings beat, cloud revenue tops $50 billion
Microsoft (MSFT) shares fell almost 7% before the bell as a solid quarterly earnings beat still left investors disappointed.
Yahoo Finance's Daniel Howley reports:
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Grace O'Donnell
Meta stock climbs after Zuckerberg says: 'We are now seeing a major AI acceleration'
Shares in Meta (META) surged in premarket, up over 7% as investors welcome raised guidance for this year's spending plans amid a Big Tech AI spending spree.
“We are now seeing a major AI acceleration," Mark Zuckerberg stated on Meta's earnings call late Wednesday.
That theme was consistent throughout Meta's earnings call, as the CEO touted new AI models and products that the company is working on.
Zuckerberg said that since the beginning of 2025, Meta has seen a 30% increase in productivity from its engineers due to the adoption of AI coding tools. The power users of those tools have seen their output increase by 80%, Zuckerberg said.
“We’re starting to see agents really work," he added. "This will unlock the ability to build completely new products and transform how we work.”
Read more here. on Meta's earnings beat from Yahoo Finance's Daniel Howley.
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Grace O'Donnell
IBM stock surges as software revenue growth accelerates
International Business Machines (IBM) stock surged 8% in premarket trading on Thursday after growth in the company's software business drove 12% revenue growth for the fourth quarter.
Revenue increased to $19.69 billion, beating forecasts of $19.21 billion, according to Bloomberg consensus estimates. Software revenue was up 14% in the quarter, Consulting revenue increased 3%, while Infrastructure revenue rose 21%.
IBM has focused on its Hybrid Cloud and Red Hat software platforms, which have been primary drivers of the stock's 30% gain over the past year.
Earnings per share came in at $4.52, compared to estimates of $4.32.
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Karen Friar
Oil climbs from four-month high as Trump ramps up Iran threats
Oil rose for a third day, building on historic highs after President Trump told Iran it would face US military attacks if it failed to agree a nuclear deal.
Brent crude futures (BZ=F), the global benchmark, moved up 2.4% to nearly $69 a barrel, coming off the highest close since September on Wednesday, Meanwhile, US benchmark West Texas Intermediate futures (CL=F) jumped 2.6% to above $64.
From Bloomberg:
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Rian Howlett
Asian shares mixed bag as region reacts to American Fed rate
Reuters reports:
Read more here.
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Rian Howlett
Gold holds above $5,500 as dollar sinks
Yahoo Finance's Ines Ferre reports:
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