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Stocks opened higher but closed mixed as rising Treasury yields dampened early enthusiasm. The Dow fell 0.2% for its seventh consecutive loss, while the Nasdaq gained 0.1%, buoyed by Broadcom's 24.4% surge after strong earnings and a dividend hike. RH and Costco also reported solid earnings, with RH stock up 17% and Costco rising 0.1%.
Adobe's 2025 sales and earnings guidance fell short of expectations as the company focuses on expanding its generative AI technology before monetization, leading to a stock decline. Oracle also reported mixed results, with a 10% EPS gain and 9% sales increase, but missed high expectations. Meanwhile, Tesla reached a record high amid optimism about self-driving technology, and Alphabet's stock surged following the announcement of a breakthrough quantum computing chip and new AI tools.
The stock market showed positive momentum, particularly in the tech sector, with the Nasdaq hitting a record high, bolstered by Broadcom's strong performance and AI-related stocks. RH surged nearly 14% after reporting a profit reversal and raising revenue guidance, although some gains may be attributed to short covering. Meanwhile, the S&P 500 and Dow experienced slight declines, and the 10-year Treasury yield rose ahead of the upcoming Federal Reserve meeting.
Broadcom's earnings report highlights a robust demand for AI computing, with CEO Hock Tan projecting a serviceable addressable market of $60 billion to $90 billion by 2027, leading to a 17% surge in shares. The S&P Short Range Oscillator indicates a potential market bottom, currently at minus 2.19, suggesting an oversold condition below minus 4. Costco's recent earnings exceeded expectations, prompting several price target increases for the stock, which is nearing record highs.
The Dow Jones Industrial Average and major indexes rose in premarket trading, buoyed by Broadcom's strong earnings, which propelled its stock up 17%. Nvidia and Tesla also saw gains, with Nvidia rebounding from losses and Tesla aiming to recover from a recent reversal. Trip.com shares surged 8.7% after breaking past a buy point, while BlackRock and Manhattan Associates approached their respective buy points, indicating potential investment opportunities in the current market.
Stock futures rose early Friday, with the Nasdaq aiming for gains and the Dow looking to end a six-session losing streak. Broadcom surged nearly 15% after reporting a 51% revenue increase, driven by a tripling of AI sales, while Costco exceeded earnings expectations following a membership fee hike. RH's stock soared after posting a profit and raising demand projections, and Apple shares climbed on optimism regarding its AI features.
In 2024, stock-split euphoria significantly boosted Wall Street, with major indices reaching record highs. Meta Platforms and Costco Wholesale are poised to be the leading candidates for stock splits in 2025, driven by their high share prices and strong market positions. Meta, with a focus on advertising and AI investments, and Costco, benefiting from its membership model and bulk purchasing power, both show potential for continued growth.
Dow Jones, S&P 500, and Nasdaq futures showed little change after hours, with Broadcom and Costco reporting earnings. Broadcom's results indicated a potential breakout, while Arm Holdings flashed a buy signal. The stock market rally faced modest losses, particularly among small caps, as the Nasdaq remains near record highs despite a decline in major tech stocks like Nvidia and Adobe.
Asian shares rose as Wall Street's rally continued, buoyed by an inflation update that suggests potential Federal Reserve support for the economy. The Hang Seng surged 1.7%, while Tokyo's Nikkei 225 gained 1.3%, driven by technology stocks. In the U.S., the S&P 500 climbed 0.8%, with Tesla jumping 5.9% and Stitch Fix soaring 44.3% after better-than-expected earnings.
Asian shares rose Thursday, buoyed by a Wall Street rally and positive inflation updates that may lead to further Federal Reserve support for the economy. The Hang Seng surged 1.7%, while the Nikkei 225 gained 1.3%, driven by technology stocks. In the U.S., the S&P 500 climbed 0.8%, marking its first two-day gain in nearly a month, as inflation ticked up slightly to 2.7% in November.
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