Shake Shack shares soared 10.8% following the release of their stronger-than-expected quarterly earnings, offering a glimmer of positivity amid a volatile week for global markets. Meanwhile, U.S. stock futures dipped Wednesday night, driven by a mix of corporate earnings reports and geopolitical developments. As the market grapples with these varied influences, stock indices across the globe exhibited diverse trends.
Wall Street experienced notable fluctuations as the S&P 500 and Nasdaq Composite both shed 0.4%. Walmart shares plummeted over 7% after announcing fiscal year sales growth expectations between 3% and 4%, prompting further scrutiny from investors. Jamie Cox commented on the situation, stating:
"it's pretty clear [Walmart is] hedging the potential impact of tariffs in their models,"
— Jamie Cox
He further emphasized the consumer impact of these tariffs:
"Consumers will pay the price of tariffs, if implemented, and that will manifest itself in lower revenue for retail."
— Jamie Cox
The tech sector faced its own set of challenges, with Palantir dropping 4.5% in premarket trading, extending a 10% loss from the previous day. The decline followed reports of potential defense budget cuts affecting tech companies. Dan Ives provided his perspective on the situation:
"The bears which have hated Palantir from $12 to $120 in the last 18 months now have found their latest "silver bullet" negative thesis around PLTR being exposed to these budget cuts and we saw a sharp sell-off in trading accordingly once this news about DOD hit in the afternoon."
— Dan Ives
However, Ives remained optimistic about Palantir's future:
"This is exactly the opposite how we believe these DOD cuts will play out as in our view Palantir's unique software approach will enable the company to gain MORE IT budget dollars at the Pentagon….not less despite these initial knee jerk reactions from the Street."
— Dan Ives
On the international front, Indian stocks traded in negative territory. The Nifty 50 was down 0.15%, while the BSE Sensex fell by 0.31% as of 2:15 p.m. local time. Japanese markets also faced downturns, with the Nikkei 225 closing 1.24% lower at 38,678.04 and the Topix index declining 1.18% to 2,734.60.
In Europe, stock performance was mixed early Thursday as the positive momentum that had driven the Stoxx 600 index to record highs earlier this month began to fade. Elyse Ausenbaugh offered a hopeful outlook:
"We have been using the word 'resilient.'"
— Elyse Ausenbaugh
She further projected optimism for future market performance:
"We think that 2025 is going to be a year that investors have a chance to build on strength."
— Elyse Ausenbaugh
"We see more room for this market rally to run."
— Elyse Ausenbaugh
IMAX reported disappointing fourth-quarter earnings, which led to a nearly 5% slide in their stock value. The company's earnings of 27 cents per share on $93 million in revenue fell short of analysts' expectations of 28 cents per share and $103 million in revenue.
BioMarin Pharmaceutical bucked the trend, seeing their shares rise over 7% after reporting stronger-than-expected fourth-quarter earnings. The company earned 64 cents per share on $747 million in revenue, surpassing analyst estimates of 53 cents per share on $712 million in revenue. Fred Imbert highlighted the company's strategic achievements:
"This quarter's results demonstrated substantial progress in our 'user first, AI-driven' strategies and the re-accelerated growth of our core businesses."
— Fred Imbert
The yen surged to a two-month high against the U.S. dollar, reaching 150.52 amid speculation that the Bank of Japan would implement more rate hikes this year. This currency movement underscored market uncertainties as investors adjusted their positions in anticipation of central bank actions.