Stocks Rise Amid Economic Strength, Corporate Beat

New York, February 20, 2025 - U.S. stocks climbed on Monday, buoyed by positive signs indicating the resilience of the world's largest economy.

Market Movers:

* The S&P 500 gained 0.1% at 11:25 a.m. EST.
* The Nasdaq 100 remained largely unchanged.
* The Dow Jones Industrial Average advanced 0.2%.
* The "Magnificent Seven" megacap index dropped 0.7%.
* The Russell 2000 index of small-cap stocks rose 1.1%.

Corporate Earnings:

* Tesla Inc., Meta Platforms Inc., and International Business Machines Corp. exceeded expectations, fueling optimism.
* Microsoft Corp. and United Parcel Service Inc. reported disappointing forecasts, leading to sell-offs.

Economic Data:

* The U.S. economy grew at a strong pace in late 2024, offsetting challenges from a Boeing Co. strike and reduced inventory investment.
* Consumer spending, a key economic driver, surged 4.2%, exceeding 3% for two consecutive quarters for the first time since late 2021.

Analyst Insights:

* Neil Birrell of Premier Miton Investors believes the economy is "doing just fine."
* Josh Jamner of ClearBridge Investments predicts that economic strength will support risk assets due to its correlation with corporate profits.

Notable Market Events:

* The collision of an American Airlines Group Inc. jet and a military helicopter near Ronald Reagan airport resulted in fatalities.
* Southwest Airlines Co. warned of higher costs due to labor expenses, dampening gains from leisure travel demand.
* United Parcel Service Inc. projected lower-than-expected revenue, indicating a delayed recovery in parcel services demand.

Other Market Movements:

* The 10-year Treasury yield remained steady at 4.52%.
* The Bloomberg Dollar Spot Index declined 0.2%.
* Gold reached a record high.
* Euro-zone bonds gained after the European Central Bank cut interest rates.