Mixed Earnings Drive S&P 500 Up Amid Tariff Concerns

Stock markets rebound as investors react positively to earnings news despite looming tariff threats. The S&P 500 Index surged +0.58%, driven by strong performances from tech giants and cruise companies.

Date: 29-01-2025

AI Rating: 6

Market Overview
Today's stock markets displayed positive momentum with the S&P 500 Index up +0.58%. This increase can largely be attributed to solid performance from megacap technology stocks and favorable earnings results from various companies.

Earnings Per Share (EPS)
Royal Caribbean Cruises Ltd has shown remarkable performance, rising more than +11% after forecasting adjusted EPS above consensus, estimated at $14.35-$14.65 compared to the market expectation of $14.32. This demonstrates strong earnings potential and a favorable outlook.

In contrast, Lockheed Martin is down more than -7% after providing a weak earnings forecast for the full year, with EPS estimates of $27.00-$27.30, lower than the consensus of $27.82. General Motors is also negatively impacted by tariff concerns despite reporting a better-than-expected profit outlook.

Revenue Growth
Invesco Ltd's stock rose more than +9% due to reporting Q4 operating revenue of $1.59 billion, exceeding the consensus estimate of $1.47 billion. This performance may indicate a strong revenue growth trajectory, positively affecting investor sentiment.

The market is also responding to mixed economic indicators, such as an increase in capital goods new orders, which rose +0.5% m/m, surpassing expectations. This may suggest an improving economic environment, bolstering investor confidence.

Future Earnings Outlook
As the earnings season progresses, investors are looking forward to Q4 results from key technology companies like Microsoft, Tesla, and Apple, which could further influence market direction. Analysts anticipate S&P 500 earnings growth of +7.5% y/y in Q4, which is encouraging news for the market.

Stocks: RCL IVZ GM LMT MSFT AAPL TSLA NVDA AMZN GOOGL