Futures linked to the DOW JONES index rose 0.19% to 47,399.50 points, while those of the S&P 500 advanced 0.29%, to 6,815.70 points. NASDAQ 100 futures rose 0.31% to 25,698.60 points.
Wall Street is coming off a positive day yesterday: The DOW JONES rose 0.48%, while the S&P 500 added 0.37% and the technology Nasdaq advanced 0.65%.
The major indices, which had been full of doubts in recent days, were encouraged by expectations of a reversal of Trump’s tariffs. The US Supreme Court yesterday began hearings to determine whether the Trump Administration’s use of the International Emergency Economic Powers Act to impose tariffs on its country’s trading partners is constitutional or not. And to the surprise of many, several judges from the conservative wing of the Supreme Court have been skeptical about the legality of the Government’s measures.
This skepticism “has radically changed expectations about a potential ruling by the highest court in this regard, increasing the probability of being contrary to the interests of the US government«says Juan J. Fernández-Figares, from Link Gestión. «Although we understand that the Trump Administration is already working on a plan «B», a contrary ruling would be a hard blow for the president.» However, «the ruling will still take time to be known,» warns the expert.
The values linked to the Artificial intelligence, under the spotlight in recent days, also seems to be stopping the bleeding in the Stock Market. However, fears of a bubble have not completely dissipated, as there are signs that AI spending remains at sky-high levels. “We are still very early in the AI supercycle,” says Shirl Penney of Dynasty Financial Partners, speaking to the CNBC. “There will be continued significant capital investment, not only by some of the ‘Magnificent Seven,’ but also by large financial firms such as Schwab, JPMorgan and others.”
Today one of the major players in the market promises to be Tesla. Investors are awaiting the electric vehicle manufacturer’s shareholder meeting, which will be held later today. The vote on Elon Musk’s proposed trillion-dollar pay package is the main event, amid concerns that the tycoon will resign as CEO if the plan is rejected.
Meanwhile, an earnings season that is much stronger than analysts had anticipated continues apace. One of the most notable values today is Snap, which skyrocketed 26% in the New York morning. The company has not only beaten expectations with its third quarter report, but has announced a $500 million share buyback program. Additionally, Perplexity AI will pay $400 million to integrate the AI startup’s search capabilities into Snapchat.
As for the earnings report itself, Snap posted a loss of 6 cents per share, while revenue hit $1.51 billion. The market had expected revenues of 1,490 million.
Robinhood shares, however, are down 2% even though the company has put better-than-expected results on the table. Robinhood reported earnings of 61 cents per share and revenue of 1.27 billion in the third quarter, compared with analysts’ forecast of 53 cents per share earnings and revenue of 1.19 billion. The shares have risen more than 470% in the last year.
Qualcomm posted adjusted earnings of $3 per share in its fourth quarter, beating analysts’ estimate of $2.88 per share. Qualcomm reported revenue of $11.27 billion, compared to a consensus estimate of $10.79 billion. For the fiscal first quarter, Qualcomm expects revenue between $11.8 billion and $12.6 billion, with an average of $12.2 billion, also beating estimates. The company announced that adjusted earnings per share will be between $3.30 and $3.50while analysts expected $3.31 per share. Despite these announcements, the shares fell 2.7%.
Duolingo plummets 23.5% on the stock market, even though third-quarter revenues of $271.7 million exceeded estimates of $260.3 million. The language learning platform expects to reach between $1,028 and $1,032 million in revenue this year. However, investors appear to be concerned that the booking forecast for the fourth quarter was less than expected.
elf Beauty also plummets on the stock market by more than 24% after presenting mixed results in fiscal second quarter. The cosmetics company earned 68 cents per share, excluding one-time items, beating analysts’ estimate of 57 cents per share. However, the company’s revenue of $344 million fell short of Wall Street’s expectations of $366 million. The annual sales forecast was also disappointing.
In terms of corporate moves, shares of chipmaker Marvell Technology soar 8% after Bloomberg reported that SoftBank considered a possible acquisition of the company earlier this year. According to this information, which cites sources familiar with the matter, SoftBank had the idea of merging it with the British semiconductor company Arm Holdings. Although Marvell and SoftBank are not actively negotiating at this time, interest in a deal could revive, according to the US agency.
In the macroeconomic section, today the Challenger report on job cuts. Layoff announcements spiked in October, it shows, as companies recalibrated their staffing levels during the rise of artificial intelligence, signaling potential trouble ahead for the labor market. Job cuts during the month totaled 153,074, which is an increase of 183% compared to September and 175% more than the same month last year. This is the highest level recorded in the month of October since 2003. This has been the worst year in terms of layoff announcements since 2009.
In commodity markets, oil prices are rising as concerns about oversupply ease, bouncing timidly from their two-week lows. West Texas oil futures rose 0.72% to $60.03 a barrel, while Brent crude rose 0.55% to $63.87 a barrel.
The euro rose 0.24% against the dollar, leaving the exchange rate at 1.1520 dollars for each single currency.