US Stocks Mixed as Investors Digest Tech Earnings and Anticipate Apple Results

US stocks exhibited a mixed performance at the market open as investors carefully assessed earnings reports from major technology companies, including Microsoft, Meta, and Tesla. The Nasdaq Composite (^IXIC) gained 0.3%, while the S&P 500 (^GSPC) rose by a similar margin. The Dow Jones Industrial Average (^DJI) traded near the flatline.

Investors have been monitoring the earnings releases of "Magnificent Seven" companies closely, as their performance has played a significant role in broader stock market gains. Tesla's (TSLA) shares climbed despite a miss on earnings, as investors placed their faith in the company's plans for growth in 2025. Meanwhile, Meta's (META) quarterly earnings surpassed expectations, boosting its stock price. However, Microsoft's stock declined after its cloud revenue fell short of forecasts.

Apple (AAPL), whose stock has faced multiple downgrades, is scheduled to release its earnings report after the market closes. Investors will scrutinize the company's quarterly update for signs of improved iPhone sales. Chipmaker Intel (INTC) is also expected to announce its financial results.

Mastercard (MA) shares surged to all-time highs after the payment card company posted better-than-expected profits. Its peer, Visa (V), is scheduled to report its earnings later in the day.

The Bureau of Economic Analysis's preliminary estimate of fourth-quarter gross domestic product (GDP) indicated that the US economy grew at an annualized rate of 2.3%, falling short of economists' expectations of 2.6%.

American Airlines (AAL) CEO Robert Isom expressed condolences following the tragic collision between an American passenger jet and a US military helicopter on Wednesday night. Isom expressed heartbreak for the families of the victims and those on board the military aircraft.

Nasdaq Wavers amid Declines for Nvidia, Microsoft

The Nasdaq Composite (^IXIC) faced challenges, weighed down by significant declines in the share prices of software giant Microsoft (MSFT) and chip maker Nvidia (NVDA). Microsoft experienced an approximately 6% drop after reporting disappointing quarterly results. Wall Street analysts attributed the decline to Microsoft's Azure growth falling below expectations, with no clear signs of reacceleration in the latter half of the year. Nvidia's shares fell by over 3%. The AI chip giant faced concerns over China's DeepSeek, a less expensive and more efficient artificial intelligence model, and reports that the Trump administration might impose stricter limitations on the company's sale of chip technology in China. Over the past four days, Nvidia's stock has declined by roughly 16%.

Comcast Stock Slumps on Disappointing Broadband and Peacock Performance

Comcast (CMCSA) shares plunged by more than 10% early Thursday after the company reported a larger-than-expected decline in broadband customers in the fourth quarter and failed to acquire additional subscribers for its Peacock streaming service. Comcast reported a loss of 131,000 broadband users, exceeding the 100,000 loss estimated by Comcast Cable CEO Dave Watson in December. The escalating losses reflect growing competition from mobile providers such as Verizon (VZ), T-Mobile (TMUS), and AT&T (T), which are attracting lower-income consumers with more flexible offerings.

However, Comcast emphasized its commitment to its connectivity business and unveiled strategic changes to establish itself as a "challenger" in the industry and "play to [its] strengths" amid the rapidly expanding internet traffic driven by the streaming boom. Comcast president Michael Cavanagh stated on the earnings call, "You will see us shift our strategy to package mobile with more of our higher-tier broadband products, both for new and many of our existing customers." Comcast's broadband challenges coincide with a decline of 311,000 TV consumers as more customers abandon cable in favor of less expensive streaming services. In this regard, the company emphasized the importance of Peacock, although subscriber growth remained flat quarter-over-quarter, with total subscribers standing at 36 million. Comcast's adjusted EBITDA loss improved from $825 million in the same period last year to a loss of $372 million. Management anticipates further improvements in losses throughout the year.

Bitcoin Rises, Nearing $106,000

Bitcoin (BTC-USD) climbed higher, hovering near $106,000 per token on Thursday. Token bulls cited comments made by Fed Reserve Chair Jerome Powell regarding crypto and banks as a catalyst that helped drive the coin's value up by more than 3% over the last 24 hours. During Wednesday's post-Federal Open Market Committee press conference, Powell stated, "Banks are perfectly able to serve crypto customers as long as they can understand and service the risks." Bitcoin has gained over 50% since the November preelection amid optimism about pro-crypto policies under a Trump administration.

Oracle Debuts New AI Agents

Oracle (ORCL), fresh from its announcement to participate in the massive Stargate Project alongside OpenAI and SoftBank (SFTBY), showcased its latest AI agents designed for manufacturers during its CloudWorld event in Austin on Thursday. These agents aim to assist supply-chain workers across a spectrum of tasks, from procurement to sustainability. AI agents are specialized AI bots equipped to execute actions on a user's behalf, either autonomously or under their supervision, across multiple applications. Companies ranging from Microsoft (MSFT) and Google (GOOG, GOOGL) to Amazon (AMZN) and Nvidia (NVDA) are promoting AI agents as the next significant stage in AI development due to their capability to streamline tedious and time-consuming tasks.

American Airlines CEO Expresses Condolences after Fatal DC Crash

In a morning statement on Thursday, American Airlines (AAL) CEO Robert Isom extended his sympathies following a crash involving 64 passengers and crew, with no survivors expected. On Wednesday night, as it neared Reagan Washington National Airport, a plane operated by American's subsidiary PSA Airlines collided with a military helicopter. "We're absolutely heartbroken for the family and loved ones of the passengers and crew members and also for those that were on the military aircraft," said Isom during a press conference with reporters. Before colliding with a US Army Black Hawk helicopter carrying three soldiers on a training mission, the flight was traveling from Wichita, Kansas to DCA, according to media reports.

Stocks Mixed as Investors Digest Earnings from Big Tech

At the market open on Thursday, US stocks demonstrated a mixed performance as investors digested earnings from Microsoft (MSFT), Meta (META), and Tesla (TSLA). The Nasdaq Composite (^IXIC) climbed 0.3%, while the S&P 500 (^GSPC) added 0.3%. The Dow Jones Industrial Average (^DJI) traded just below the flatline. The market attempted to rebound after the Federal Reserve maintained interest rates, signaling caution regarding the topic of inflation. Microsoft's shares experienced a decline of over 5% on Thursday following its quarterly results. Both social media platform Meta and electric vehicle giant Tesla gained. Apple (AAPL) is expected to release its results after the market closes.

GDP: US Economy Grows at Slower-than-Expected Pace in Fourth Quarter

Preliminary data revealed that the US economy grew at a slower-than-anticipated pace in the fourth quarter. The Bureau of Economic Analysis's preliminary estimate of US gross domestic product (GDP) for the fourth quarter indicated that the economy expanded at an annualized rate of 2.3%, below the 2.6% growth predicted by economists polled by Bloomberg. The figure contrasts with the 3.1% growth seen in the third quarter. Economic growth in the quarter was fueled by increases in consumer and government spending, but was partially offset by decreases in investment. The US economy expanded at a rate of 2.8% for the year, slightly lower than the 2.9% observed in 2023 but higher than the 2.5% expansion in 2022.