Stocks closed higher Thursday, bouncing back from Wednesday's Fed-fueled selloff. Ahead of tonight's batch of Big Tech earnings from Amazon.com (AMZN, +2.6%), Apple (AAPL, +1.3%) and Meta Platforms (META, +1.2%), market participants took in some mixed economic data and dismal guidance from a one-time pandemic darling.
On the economic front, the Labor Department said initial jobless claims jumped to a three-month high of 224,000 last week. The data comes ahead of tomorrow's January jobs report, which will be "a key input" in the Fed's decision-making process, says Morgane Delledonne, head of investment strategy for Europe at Global X.
Meanwhile, data from both S&P Global and the Institute for Supply Management showed manufacturing activity improved from December to January. "Manufacturers have started the year with a spring in their step," said Chris Williamson, chief business economist at S&P Global Market Intelligence. "Business optimism about the year ahead has surged to its highest since early 2022 thanks to a jump in demand."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Still, Williamson says the data showed higher costs related to supply delays that could result in "renewed upward pressure on consumer prices" in the months ahead if this trend persists.
That last point is particularly important following this week's Fed meeting. While the central bank kept the federal funds rate unchanged again, it indicated it is in no rush to start cutting rates as long as inflation remains elevated.
Peloton plunges on weak guidance
In single-stock news, Peloton Interactive (PTON) plunged 24.3% after the athletic equipment maker, which gained major market share at the outset of the pandemic, reported earnings. While Peloton disclosed a narrower-than-expected loss for its fiscal second quarter on higher-than-anticipated revenue, it gave disappointing fiscal Q3 and full-year guidance.
"Our outlook is tempered by uncertainty surrounding our ability to efficiently grow Paid App subscribers and the performance of other new initiatives, as well as an uncertain macroeconomic outlook," wrote Liz Coddington, chief financial officer of Peloton, in the report.
Merck (MRK) was another post-earnings mover, only shares of the blue chip stock jumped 4.7%. The drugmaker disclosed fourth-quarter earnings of 3 cents per share on $14.6 billion in revenue, both figures higher than analysts were expecting.
New York Community Bancorp shares keep falling
Elsewhere, New York Community Bancorp (NYCB) continued to slide. Shares of the commercial real estate (CRE) lender slumped 11.3% today, bringing its two-day decline to 44.7%.
The selloff began Wednesday after the company said it swung to an unexpected per-share loss in the fourth quarter as loan losses surged. This caused the bank, which early last year acquired failed regional lender Signature Bank, to increase its loan-loss reserves. In order to boost its capital, NYCB also slashed its quarterly dividend to 5 cents per share from 17 cents per share.
BofA Securities analyst Ebrahim H. Poonawala says Q4 could mark a "kitchen-sink quarter" for the bank stock, but "the Street will likely need proof points that the worst impacts of credit/liquidity/capital builds are now reflected in earnings outlook and that management and regulators are in sync with NYCB’s balance sheet positioning." The analyst kept a Buy rating on NYCB.
As for the main indexes, the Dow Jones Industrial Average gained 1.0% to 38,519, the S&P 500 rose 1.3% to 4,906, and the Nasdaq Composite added 1.3% to 15,361.
Related content
- ARK Invest's Cathie Wood is Searching for the Next Big Thing
- Finfluencers Are a Rising Trend. But Should You Trust Their Advice?
- More Americans Are Seeing Wages Grow Faster Than Prices
-
Dow Falls 557 Points to Start NVDA Week: Stock Market TodayThe Oracle of Omaha saw growth and value in certain corners of the stock market during the third quarter.
-
Nvidia Earnings: Live Updates and Commentary November 2025Nvidia's earnings event is just days away and Wall Street is zeroed in on the AI bellwether's third-quarter results.
-
Dow Falls 557 Points to Start NVDA Week: Stock Market Today
The Oracle of Omaha saw growth and value in certain corners of the stock market during the third quarter.
-
Nvidia Earnings: Live Updates and Commentary November 2025
Nvidia's earnings event is just days away and Wall Street is zeroed in on the AI bellwether's third-quarter results.
-
Your Four-Step Guide to True Financial Freedom, From a Financial PlannerYes, you can achieve financial independence, even if it seems elusive. While it may not be an easy journey, these are the steps to get things rolling.
-
The Private Annuity Sale: A Smart Way to Reduce Your Estate TaxesIn a private annuity sale, you transfer a highly appreciated asset to an irrevocable trust in exchange for a lifetime annuity.
-
I'm a Real Estate Investing Pro: This High-Performance Investment Vehicle Can Move Your Wealth Up a GearLeave online real estate investing to the beginners. Accredited investors who want real growth need the wealth-building potential of Delaware statutory trusts.
-
These Eight Tips From a Retirement Expert Can Help to Make Your Money Last Through RetirementAre you worried you will outlive your money? Considering these eight tips could go a long way toward ensuring your retirement money lasts as long as you do.
-
I'm an Investment Adviser: This Is the Retirement Phase Nobody Talks AboutWhat you do in the five years before retirement and the first 10 afterward can establish how comfortable you'll be for the rest of your life.
-
Gen X Turns 60: It's Time to Remix Your Retirement PlaylistIf you want a worry-free retirement, you can't keep playing the same old song. You need to freshen up your financial strategies, as well as your music.
