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U.S. stock futures are pointing mostly higher ahead of earnings and retail sales data; Taiwan Semiconductor Manufacturing Co. (TSM) shares are surging in premarket trading after the firm reported better-than-expected profit; UnitedHealth Group (UNH) shares are sinking after the health insurer reported results that missed expectations; Bank of America (BAC) joins other financial firms in posting stronger-than-expected results; and retail sales growth is expected to have slowed in December. Here's what investors need to know today.
1. US Stock Futures Mostly Higher as Investors Watch for Earnings, Sales Data
U.S. stock futures are pointing mostly higher after encouraging inflation data and strong bank earnings pushed indexes higher yesterday. Nasdaq futures are 0.4% higher after the index surged 2.5% yesterday. S&P 500 futures are inching higher but Dow Jones Industrial Average futures are ticking lower. Investors are watching for more corporate earnings reports and economic data on retail sales today. Bitcoin (BTCUSD) is down 1% to trade around $99,000 and yields on the 10-year Treasury note are slightly higher. Gold futures are rising but oil futures are falling.
2. TSMC Stock Jumps on Strong Profit, Bullish AI Projections
U.S.-listed shares of Taiwan Semiconductor Manufacturing Co. (TSM) are up 4% in premarket trading after the chipmaker posted better-than-expected fourth-quarter profit and a bullish outlook for artificial intelligence (AI) demand. The world's largest contract chip manufacturer reported profit of 374.68 billion New Taiwan dollars ($11.37 billion), a 57% year-over-year surge and above analysts' expectation of NT$369.15 billion. TSMC also posted a 34% jump in revenue for 2024.
3. UnitedHealth Group Stock Falls as Results Miss Estimates
UnitedHealth Group (UNH) shares are about 3% lower in premarket trading after the health insurance giant reported results that missed analysts' expectations. Revenue grew 7% year-over-year to $100.8 billion, below the Visible Alpha consensus, while its earnings of $5.54 billion, or $5.98 per share, were also lower than estimates. The company's adjusted earnings per share (EPS) of $6.81 topped expectations. The company also affirmed its 2025 outlook.
4. Bank of America Joins Peers in Posting Better-Than-Expected Results
Bank of America (BAC) posted better-than-expected quarterly results, joining other financial firms in issuing strong earnings reports. The firm reported $6.67 billion in net income on $25.35 billion in revenue. Analysts polled by Visible Alpha expected $6.32 billion and $25.02 billion, respectively. Bank of America's net interest income came in at $14.36 billion, just above the $14.18 billion consensus. The firm's stock had risen more than 45% in the last 12 months through Wednesday's close but turned slightly lower in premarket trading after initially rising following the report.