Market Summary: U.S. Stocks Drop, Crude Oil Rises, and Delta Air Lines Reports Strong Earnings

U.S. stocks saw a decline toward the end of trading on Friday, with the Nasdaq Composite suffering a substantial drop of over 400 points.

The Dow Jones Industrial Average decreased by 1.19%, closing at 42,129.32. Meanwhile, the NASDAQ fell 1.16% to settle at 19,252.53. The S&P 500 also faced losses, dropping 1.10% to reach 5,853.26.

Sector Performance

Among sectors, energy stocks showed some resilience, rising by 0.6% on the day. In contrast, information technology shares experienced a significant downturn, plummeting by 2.1%.

Delta Air Lines Reports Strong Results

In a notable announcement, Delta Air Lines, Inc. (DAL) reported stronger-than-expected earnings for the fourth quarter, providing guidance for 2025.

Delta's adjusted operating revenue grew by 5.7% year-over-year, reaching $14.437 billion. Its GAAP operating revenue also saw a rise of 9.4% year-over-year, totaling $15.56 billion, which surpassed the consensus forecast of $14.212 billion.

The airline's adjusted average fuel price decreased to $2.34 per gallon, down from $3.00 during the same quarter last year. Adjusted earnings per share stood at $1.85, marking a 44.5% year-over-year increase and beating the expectation of $1.76.

Movers in the Market

Among the stocks that rose, Walgreens Boots Alliance, Inc. (WBA) saw its shares soar by 28%, bringing it to $11.82 after reporting better-than-expected first-quarter financial results.

• Shares of Vision Marine Technologies Inc. (VMAR) spiked 53% to $2.33, as it regained compliance with Nasdaq’s requirements for stockholders’ equity and announced a partnership with Calip Group.
• Savers Value Village, Inc. (SVV) also gained 12%, reaching $10.50 following an announcement of positive preliminary sales figures for the fourth quarter and the full year.

Declining Stocks

• On the downside, IGM Biosciences Inc. (IGMS) saw its shares plunge 66%, dropping to $2.1250 after revealing it would cease further development of specific drug candidates.
• Shares of Maravai LifeSciences Holdings, Inc. (MRVI) fell by 22% to $4.81 following its announcement of preliminary revenue estimates for 2024.
• Mercury General Corporation (MCY) decreased by 21%, settling at $48.05 after the company predicted wildfire-related losses in Southern California would exceed $150 million.

Commodity Highlights

In commodity trading, crude oil prices experienced a rise of 3.1%, climbing to $76.21 per barrel. Gold prices also increased by 0.9%, reaching $2,715.20 per ounce. Similarly, silver prices saw an uptick of 0.9%, priced at $31.290, while copper dipped slightly by 0.2%, remaining at $4.3025.

International Market Overview

European markets faced declines as well, with the Eurozone's STOXX 600 index dropping by 0.84%. The German DAX 40 decreased by 0.50%, and France's CAC 40 fell by 0.79%. Spain’s IBEX 35 Index was down 1.5%, while London's FTSE 100 lost 0.86%.

In Asia, major markets closed lower on the day—Japan's Nikkei 225 fell by 1.05%, China's Shanghai Composite Index dipped 1.33%, and Hong Kong's Hang Seng Index declined by 0.92%. India's BSE Sensex also experienced a drop, falling by 0.31%.

Economic Indicators

• The U.S. nonfarm payroll report showed a rise of 256,000 jobs in December, surpassing economist expectations following a revised figure of 212,000 in November.
• The unemployment rate improved slightly from 4.2% to 4.1%, better than predicted.
• Average hourly earnings rose by 0.3% month-over-month, matching expectations, though the annual increase of 3.9% was just shy of the 4% forecast.
• Consumer sentiment, as measured by the University of Michigan, decreased to 73.2 in January from 74 in the previous month.

Overall, the market reflects a mix of earnings surprises and economic indicators, producing a varied landscape as investors navigate through economic uncertainties.

Stocks, Earnings, Commodities