By Johann M Cherian and Sukriti Gupta
(Reuters) – Wall Street’s main indexes paused on Thursday after a jump in the previous session, helped by a series of big bank earnings, as investors weighed data to gauge the prospect of interest rate cuts this year.
At 11:59 a.m. ET, it rose 26.22 points, or 0.06%, to 43,247.77, gained 5.34 points, or 0.09%, to 5,955.25 and lost 53.30 points, or 0 .27%, to 19,457.93.
Morgan Stanley (NYSE: ) added 3.3% after the lender said earnings rose in the fourth quarter, boosted by a wave of dealmaking, while Bank of America fell 1.2%. The second largest bank in the country predicts higher income from interest in 2025.
Investors were also focused on comments from Fed Governor Christopher Waller, who said three or four rate cuts were still possible this year if economic data weakened further.
The yield on the 10-year Treasury note slipped to 4.617% and futures priced in about 43.5 basis points of a rate cut in 2025 after Waller’s remarks, up from about 37 basis points late Wednesday, according to LSEG data.
“Anyone trying to project where we are with the unknowns of the new administration and more importantly what the tariffs will or won’t do is a mistake,” said Phil Blancato, chief executive officer of Ladenburg Thalmann Asset Management.
“Right now you have to accept that inflation is nicer than we expected, and on top of that, you have a scenario where you’re still confused about what’s next from a policy standpoint.”
President-elect Donald Trump is expected to take office on Monday.
Seven of 11 S&P 500 sectors rose, with utilities and real estate stocks up more than 1.5%.
The equal-weighted S&P 500 rose 0.7%, while tech stocks Apple (NASDAQ: ) and Nvidia (NASDAQ: ) weighed on the Nasdaq.
On the data front, the report showed retail sales rose less than expected in December, while another report said jobless claims rose more than expected last week.
On Wednesday, Wall Street’s major indexes posted their biggest one-day jump since Nov. 6 after data showed core inflation easing and the nation’s three biggest banks reported strong results.
The S&P 500 and regional banks index outperformed Wall Street’s best indexes so far in January, as investors expect a favorable business environment for the sector under Trump. This opinion was reiterated by the executive directors of the banks on Wednesday.
Of the 28 companies in the S&P 500 that reported fourth-quarter earnings on Wednesday, 82.1% beat estimates, according to data compiled by LSEG.
UnitedHealth (NYSE: ) which lost 4.5% after the insurer reported fourth-quarter revenue below estimates.
Shares of US-listed Taiwan Semiconductor Manufacturing Co rose 4.8% after the company posted a record quarterly profit.
At his Senate confirmation hearing, Treasury nominee Scott Bessent expressed support for extending Trump’s 2017 tax cuts.
Advancing issues outnumbered decliners by a ratio of 1.81 to 1 on the NYSE and 1.08 to 1 on the Nasdaq.
The S&P 500 hit 19 new 52-week highs and nine new lows, while the Nasdaq Composite hit 50 new highs and 84 new lows.
