U.S. Stocks Set for Gains Ahead of Key Economic Data and Earnings Reports

U.S. stock futures experienced an increase on Thursday, bouncing back from a decline spurred by the Federal Reserve's decision to keep interest rates unchanged. All four major stock indices were trending upward.

Apple Inc. (AAPL), which is recognized as the most valuable company globally, is scheduled to announce its first-quarter earnings following the market's close today.

Additionally, investors are keenly awaiting the first-quarter Gross Domestic Product (GDP) data, which will be released prior to the market opening today.

Currently, the yield on the 10-year Treasury note stands at 4.50%, while the two-year Treasury yield is at 4.20%. According to the CME Group’s FedWatch tool, there is an 80% likelihood that the Federal Open Market Committee (FOMC) will maintain its current interest rates through March 2025.

Futures	Change (+/-)
Nasdaq 100	0.47%
S&P 500	0.35%
Dow Jones	0.42%
Russell 2000	0.99%

During premarket trading, both the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust ETF (QQQ) registered gains. Specifically, SPY rose by 0.33%, reaching a price of $603.80, while QQQ climbed 0.44%, hitting $523.10, according to data from Benzinga Pro.

Market Insights from Previous Sessions

U.S. equity markets faced a downturn on Wednesday after the Federal Reserve announced the decision to keep interest rates steady.

The shares of Nvidia Corp. (NVDA) fell by more than 4% due to news about potential sales restrictions in China. On the other hand, General Dynamics Corp. (GD) and Corning Inc. (GLW) exceeded earnings expectations, with the latter providing optimistic guidance.

Furthermore, the U.S. trade deficit expanded to a record $122.11 billion in December, while wholesale inventories decreased by 0.5%. The sectors of technology, real estate, and healthcare led the S&P 500 decline, while consumer staples and communication services showed gains.

Index	Performance (+/-)	Value
Nasdaq Composite	-0.51%	19,632.32
S&P 500	-0.47%	6,039.31
Dow Jones	-0.31%	44,713.52
Russell 2000	-0.25%	2,283.10

Expert Analysis and Projections

In light of the recovery from recent market dips, Scott Wren, a senior global market strategist at Wells Fargo Advisors, commented that investments in artificial intelligence are expected to rise significantly in the coming years. However, he cautioned that sector-specific investing might face volatility, making portfolios more susceptible to developments that could affect individual sectors.

Ryan Detrick, the chief market strategist at Carson Research, drew interesting correlations between the S&P 500's performance and the Chinese zodiac calendar. He highlighted that according to the calendar, 2025 marks the ‘Year of the Snake,’ traditionally indicating modest returns.

From historical data since 1950, the 'Year of the Snake' has concluded positively only three out of six times, with an average gain of less than 1%. Additionally, trends suggest alternating highs and lows since 1953, signaling a potential downturn. Interestingly, next year as the 'Year of the Horse' also appears less promising.

On a brighter note, Detrick noted that the S&P 500 is currently up by 2.91% year-to-date, supporting his view that a strong January often predicts favorable returns for the remaining months of the year.

An analysis he presented showed that historically, a higher January correlates with an average return of about 12.2% over the next 11 months.

Economic Indicators to Watch

Investors will be closely monitoring the following economic data releases on Thursday:

• GDP data for the first quarter and initial jobless claims up to January 25 will be available at 8:30 a.m. ET.

• Pending home sales for December will be announced at 10:00 a.m. ET.

Highlighted Stocks:

• Apple Inc. (AAPL) was down by 0.14% during premarket trading in anticipation of its earnings announcement today, where analysts predict earnings of $2.35 per share and a revenue of $124.13 billion.

• United Parcel Service Inc. (UPS) rose by 1.62%, with expectations of earnings at $2.53 per share on revenue of $25.42 billion, to be released before the market opens.

• Tesla Inc. (TSLA) saw an increase of 1.78%, even though its fourth-quarter earnings and sales figures were below expectations. The company committed to launching new, more affordable models in 2025.

• Meta Platforms Inc. (META) was up 2.23% after posting better-than-forecast fourth-quarter sales, despite its current quarter guidance being lower than anticipated.

• Microsoft Corp. (MSFT) declined by 3.99% due to lower-than-expected cloud revenue, despite surpassing overall revenue and earnings estimates.

• IBM Corp. (IBM) saw a significant gain of 7.60%, beating revenue and earnings expectations for the fourth quarter.

• Other notable companies reporting earnings before the market opens include Mastercard Inc. (MA), up 0.93%; Blackstone Inc. (BX), up 1.24%; Caterpillar Inc. (CAT), up 0.70%; and Visa Inc. (V), which was up 0.91% ahead of its earnings announcement after market close.

Commodities and Global Market Overview:

In the early New York session, crude oil futures traded lower, declining by 0.67% to approximately $72.13 per barrel.

The gold spot index rose by 0.64% to $2,777.47 per ounce, while the Dollar Index remained steady at 107.989.

Asian markets had a positive day, with indices in Australia, Japan, South Korea, and Hong Kong seeing increases. European markets similarly opened higher.

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