As the stock market gears up for another day, here are five key points investors need to keep in mind:
1. U.S. Stock Futures Point Mostly Higher Ahead of Earnings and Sales Data
U.S. stock futures are trending mostly higher, buoyed by encouraging inflation data and robust bank earnings. Nasdaq futures are up 0.4% following a 2.5% surge yesterday, while S&P 500 futures are slightly higher. However, Dow Jones Industrial Average futures are slightly lower. Investors are keenly awaiting more corporate earnings reports and retail sales data due today. Meanwhile, Bitcoin is down 1%, trading around $99,000, with 10-year Treasury yields edging up. Gold futures are gaining, but oil futures are on a decline.
2. TSMC Shares Surge on Strong Profit and Bullish AI Outlook
Taiwan Semiconductor Manufacturing Co. (TSM) is seeing a 4% premarket jump in its U.S.-listed shares after reporting a strong fourth-quarter profit that exceeded expectations. The company posted a 57% year-over-year profit increase, reaching NT$374.68 billion ($11.37 billion), surpassing analysts' forecast of NT$369.15 billion. Revenue for 2024 also rose 34%, with TSMC projecting strong demand for AI-related technologies.
3. UnitedHealth Group Slips After Missing Earnings Expectations
UnitedHealth Group (UNH) is down about 3% in premarket trading following earnings that missed estimates. The health insurer reported a 7% year-over-year revenue increase to $100.8 billion, falling short of consensus expectations. Despite adjusted earnings per share (EPS) of $6.81 surpassing forecasts, overall earnings of $5.54 billion, or $5.98 per share, were below estimates. The company reaffirmed its outlook for 2025.
4. Bank of America Beats Expectations with Strong Quarterly Results
Bank of America (BAC) has joined other financial firms in delivering better-than-expected earnings. The bank reported a net income of $6.67 billion on $25.35 billion in revenue, exceeding analyst predictions of $6.32 billion and $25.02 billion, respectively. Net interest income came in at $14.36 billion, slightly above the consensus of $14.18 billion. Despite a 45% stock gain over the past year, shares edged lower in premarket trading after initially rising on the earnings news.
5. Retail Sales Growth Expected to Slow in December
Investors are closely watching the U.S. retail sales data for December, which is set to be released at 8:30 a.m. ET. Economists expect a 0.5% increase, following a 0.7% rise in November. Retail sales have consistently outpaced expectations over the past six months, and today's report will provide further insights into consumer spending trends.
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