Market Update: Nasdaq Declines as Morgan Stanley Surpasses Earnings Expectations

U.S. stocks faced a downturn as the trading day came to a close, with the Nasdaq Composite index experiencing a notable decline of over 150 points on Thursday.

The Dow Jones Industrial Average fell by 0.27%, settling at 43,106.65. Meanwhile, the Nasdaq dropped 0.79% to close at 19,356.43. The S&P 500 also saw declines, decreasing by 0.28% to 5,933.22.

Sector Performance Overview

Among sectors, utilities led the way on Thursday, with shares surging by 2.3%.

This contrasts with the consumer discretionary sector, which saw a decline of 1.1% in trading.

Noteworthy Earnings Announcement

In corporate news, Morgan Stanley reported stronger-than-expected earnings for the fourth quarter. The bank announced an adjusted earnings per share (EPS) of $2.22, a significant increase from $0.85 in the same quarter last year, and well above the consensus estimate of $1.70. Additionally, net earnings more than doubled, climbing from $1.52 billion to $3.7 billion.

Morgan Stanley's fourth-quarter revenue was reported at $16.22 billion, reflecting a 26% year-over-year increase, surpassing the expected consensus of $15.03 billion.

Stocks on the Rise

• Biomerica, Inc. (NASDAQ:BMRA) saw its shares soar by 102% to $0.6820 after announcing that its Fortel Prostate Specific Antigen Screening Test gained approval from the United Arab Emirates Ministry of Health and Prevention.
• DouYu International Holdings Limited (NASDAQ:DOYU) experienced a 26% increase, with shares rising to $15.53 following the appointment of Simin Ren as Co-CEO and the declaration of a special cash dividend.
• Symbotic Inc. (NASDAQ:SYM) shares rose by 19%, reaching $31.88 after announcing a deal to acquire Walmart Inc.'s Advanced Systems and Robotics business.

Declining Stocks

• Leafly Holdings, Inc. (NASDAQ:LFLY) shares plummeted by 45% to $0.8001 after the company revealed it had received a Nasdaq delisting notice and would be moving to the over-the-counter market.
• Shares of Atara Biotherapeutics, Inc. (NASDAQ:ATRA) fell by 34%, closing at $8.70 after the company provided a regulatory and business update on its product EBVALLOTM (tabelecleucel).
• Polestar Automotive Holding UK PLC (NASDAQ:PSNY) shares dropped 11% to $1.09 following the release of preliminary third-quarter revenue figures of $551 million, which marked a 10% decrease compared to the previous year, attributed to lower volume and a competitive market.

Commodity Market Overview

In the commodities market, oil prices declined by 1.9%, settling at $78.49. Gold prices, conversely, saw an increase of 1.4%, reaching $2,755.10. Silver prices rose by 1% to $31.860, while copper prices were up 1.1% to $4.4350.

Global Market Performance

In Europe, most markets closed higher, with the eurozone's STOXX 600 index gaining 0.98%. Germany's DAX 40 and France's CAC 40 also posted gains of 0.39% and 2.14%, respectively. Spain's IBEX 35 index declined by 0.49%, while London's FTSE 100 increased by 1.09%.

In the Asia Pacific region, markets closed predominantly higher. Japan's Nikkei 225 rose by 0.33%, while China's Shanghai Composite Index climbed by 0.28%. Hong Kong's Hang Seng Index increased by 1.23%, and India's BSE Sensex was up by 0.42%.

U.S. Economic Indicators

• U.S. retail sales saw a modest increase of 0.4% month-over-month in December. This was a decrease from a revised 0.8% increase in the prior month and fell short of market estimates of 0.6%.
• Initial jobless claims rose by 14,000, totaling 217,000 for the week ending January 11, compared to market expectations of 210,000.
• Import prices increased by 0.1% month-over-month in December, while export prices rose by 0.3%.
• The Philadelphia Fed Manufacturing Index climbed to 44.3 in January, contrasting with a previous reading of -10.9.
• The NAHB/Wells Fargo Housing Market Index improved to 47 in January, compared to the previous steady reading of 46.
• U.S. business inventories saw a slight increase of 0.1% month-over-month in November, up from a flat reading in the previous month.
• Furthermore, the EIA reported a decline in U.S. natural-gas stocks, which fell by 258 billion cubic feet during the week ending January 1.

This summary marks the ongoing fluctuations in the U.S. stock market amid varying sector performances, notable earnings, and broader economic indicators.

Stocks, Market, Earnings