Market Summary
U.S. stocks closed higher on Friday, buoyed by strong earnings from Apple and in line with the Federal Reserve's preferred inflation gauge.
* Nasdaq Composite (^IXIC): +1.44%
* S&P 500 (^GSPC): +0.78%
* Dow Jones Industrial Average (^DJI): +0.02%
Apple Earnings Boost
Apple (AAPL) shares surged after posting a stronger-than-expected quarterly profit. While iPhone and China sales fell short, investors were optimistic about revenue outlook.
Inflation Gauge
The core Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation gauge, rose 2.8% year-over-year in December, matching expectations. This signals that inflation remains above the Fed's 2% target.
Tariff Deadline
Investors braced for a looming tariff deadline between the U.S. and Canada/Mexico. President Trump has threatened to impose 25% tariffs, raising concerns about the impact on the economy.
Fed Stance
Fed Chair Jerome Powell has adopted a wait-and-see approach, citing economic uncertainty and trade policies. Traders expect the first rate cut of the year to come in June or later.
Deckers Stock Falls
Deckers Outdoor (DECK) shares tumbled after the company projected a slowdown in sales growth for fiscal 2025. The company's comfortable footwear brands, HOKA and UGG, posted solid holiday quarter sales.
Corporate News
* Chevron (CVX) sees Permian Basin oil growth reaching 10% this year.
* Novo Nordisk stock faces challenges after a 40% slump.
* Samsung secures Nvidia's approval to supply less advanced AI memory.