As the bell tolled on Wall Street, the Nasdaq Composite displayed its fickle nature by dipping just below the breakeven point on Thursday. The Dow, in a rare show of strength, advanced 0.25% to reach 37,900.45, while the Nasdaq sank 0.13% to 15,462.53. The S&P 500, not to be outdone, made gains of 0.19% to settle at 4,877.88.
Market Movement
The energy sector pulled its weight, rising a robust 1.7%, while consumer discretionary shares took a tumble, falling by 1.5%. It was a tale of two sectors on Wall Street today.
Big Story of the Day
American Airlines Group Inc (NASDAQ: AAL) pleasantly surprised investors with its fourth-quarter performance. Although adjusted earnings plummeted by 75% to 29 cents per share, the figure gleefully surpassed the market’s lowball estimate of 10 cents per share. Embracing the mixed earnings report, the airline’s total revenue dipped by a mere 1% to $13.06 billion, defiantly beating the projected $13.02 billion. Even more thrilling, the company remains optimistic, anticipating full-year 2024 adjusted earnings per diluted share to hover between $2.25 and $3.25, a shade above the market’s $2.25 consensus. American Airlines is flying high indeed.
Winners and Losers
In the race to the top, Vera Therapeutics, Inc. (NASDAQ: VERA) skyrocketed 53% to $25.97 following an upbeat 72-week data announcement from its Phase 2b ORIGIN clinical trial. Processa Pharmaceuticals, Inc. (NASDAQ: PCSA) wasn’t left behind, revving up 88% to $3.8520 after successfully concluding its Phase 1b trial of Next Generation Capecitabine. Adding to the euphoria, American Superconductor Corporation (NASDAQ: AMSC) lived up to its name, surging 31% to $12.75 after outperforming in its third-quarter financial results and issuing fourth-quarter revenue guidance that blew past estimates.
On the opposite end of the thrill ride, RedHill Biopharma Ltd. (NASDAQ: RDHL) plunged 46% to $0.5864 after making an $8 million registered direct offering. MarineMax, Inc. (NYSE: HZO) didn’t escape the downward spiral either, falling 19% to $26.81 following disappointing first-quarter adjusted EPS results and a bleak FY24 adjusted EPS outlook. Columbia Banking System, Inc. (NASDAQ: COLB) wasn’t spared either, somberly sliding 22% to $20.06 after unveiling dreary fourth-quarter financials.
Commodity Corner
Globally, oil surged 2.7% to $77.09, and gold glimmered with a 0.1% uptick, settling at $2,018.20. Silver held steady with a 0.1% rise to $22.915, while copper faltered, dropping 0.6% to $3.8635.
World Markets Roundup
In Europe, the STOXX 600 ascended 0.30%, FTSE 100 crept up 0.03%, and the DAX and CAC 40 gained 0.10% and 0.11%, respectively. However, the IBEX 35 Index in Spain fared poorly, diving 0.58%. The German Ifo Business Climate indicator slumped to 85.2 in January, producer prices in Spain sank 6.3% year-over-year in December, and France’s manufacturing climate indicator stayed put at 99 for January.
Across the Pacific, Japan’s Nikkei 225 advanced a mere 0.03%, Hong Kong’s Hang Seng Index triumphed with a 1.96% climb, and China’s Shanghai Composite Index stole the show with a resounding 3.03% surge. In stark contrast, India’s S&P BSE Sensex was a damper, falling 0.51% in trading today.
Economic Insights
Shifting our gaze to the economic terrain, the US economy unfurled a 3.3% annualized growth in the fourth quarter, outshining market forecasts of a 2% rise and slightly dimming the gleam of a 4.9% rate from the prior quarter. Conversely, initial jobless claims in the US ballooned by 25,000 to 214,000 in the week ending Jan. 20. Additionally, the US trade deficit in goods narrowed to $88.5 billion in December, the Chicago Fed National Activity Index dipped to -0.15 in December, wholesale inventories rose by 0.4% month-over-month, and new orders for manufactured durable goods stagnated in December. Meanwhile, US natural-gas supplies contracted by 326 billion cubic during the week ended Jan. 19, 2024, as per the EIA.