US Stocks Climb as Investors Assess Earnings and Labor Data
US stocks edged higher on Thursday, hovering close to record levels, as investors evaluated a mix of corporate earnings reports and fresh signals from the labor market. The S&P 500 rose 0.3% in early trading, remaining just below its all-time high set late last month. The Dow Jones Industrial Average gained 179 points, and the Nasdaq Composite also increased by 0.3%.
Mixed Corporate Earnings Drive Market Movements
Gains occurred despite uneven earnings outcomes from major companies. McDonald's shares advanced after the fast-food chain reported stronger-than-expected quarterly profit, boosted by the re-launch of its Extra Value Meal. In contrast, AppLovin and Cisco Systems declined following their results, and pest control firm Rollins slumped 13% after missing Wall Street's fourth-quarter sales and profit estimates.
Labor Market Signals and Treasury Yields
Treasury yields edged lower after data revealed that slightly more workers filed for unemployment benefits last week than forecast, indicating some cooling in labor market conditions. Earlier, Wall Street futures had pointed to gains ahead of the opening bell as markets digested corporate earnings and awaited this labor market data. Futures tied to the S&P 500, Dow Jones Industrial Average, and Nasdaq were each up about 0.3%.
Investors are closely monitoring labor market signals, especially after the US Labor Department reported that employers added 130,000 jobs in January, exceeding economists' expectations. Jonas Goltermann, deputy chief markets economist at Capital Economics, noted in a statement that this strong payroll data strengthens the case for higher US Treasury yields and a rebound in the dollar over the coming months. He added that stabilizing labor conditions suggest the chances of another Federal Reserve rate cut in the near term are quite low.
Global Market Performance
In Europe, Britain's FTSE rose 0.2% by midday, Germany's DAX advanced 1.3%, and France's CAC 40 gained 0.9%. Markets are also tracking upcoming US existing home sales data for further economic cues.
In Asia, Japan's Nikkei 225 briefly crossed the 58,000 level before closing slightly lower at 57,639.84 after trading resumed post-holiday. Japanese equities have rallied following Prime Minister Sanae Takaichi's landslide parliamentary election victory, raising expectations of stronger economic stimulus.
South Korea's Kospi crossed the 5,500 mark for the first time, rising 3.1% to 5,522.27, led by technology stocks. Samsung Electronics jumped 6.4%, while chipmaker SK Hynix gained 3.3%. Hong Kong's Hang Seng fell 0.9% to 27,032.54, while China's Shanghai Composite edged marginally higher. Australia's S&P/ASX 200 rose 0.3%.
Commodities Update
In commodities, US benchmark crude slipped 25 cents to $64.38 per barrel, while Brent crude fell 37 cents to $69.03. Gold eased less than 1%, and silver declined 1.5%.
