S&P 500 Rallies Amid Mixed Earnings and Economic Data

S&P 500 climbs 0.61% today, bolstered by healthcare declines and favorable PPI data. Mixed earnings reports lead to stock fluctuations, affecting investor sentiment.

Date: 15-02-2025

AI Rating: 6

Earnings Per Share (EPS)
MGM Resorts International reported Q4 results with net revenue at $4.35 billion, surpassing estimates of $4.28 billion, which could positively affect its stock price. GE HealthCare Technologies also exceeded expectations with Q4 adjusted EPS of $1.45 versus the consensus of $1.26, contributing to an increased forecast for 2025. The stock is up over +7% as a result.

Revenue Growth
In addition to MGM and GE HealthCare, Dutch Bros reported Q4 revenue of $342.8 million, above the consensus of $318.8 million, also forecasting full-year revenue growth which could positively impact stock sentiment.

On the negative side, Datadog's forecast for full-year adjusted EPS of $1.65-$1.70 was below the consensus of $2.12, leading to a drop in its stock price. Similarly, West Pharmaceutical Services forecasts adjusted EPS well below consensus which resulted in a -28% decrease in their stock.

Market Sentiment
The dip in bond yields, along with a positive response to inflation-related reports, has improved overall market sentiment, driving gains in tech stocks like Intel and Nvidia, aligning with investor expectations.

Slightly hawkish indicators from the initial unemployment claims and producer prices could spark concerns regarding Fed policy affecting future stock prices. Overall, the market is currently balanced with supportive earnings from certain sectors while being weighed down by negative forecasts from others.

Stocks: MGM GEHC DDOG WST DE APP TAP CSCO MU NVDA INTC AMD