US stocks stepped higher at the open Thursday as investors braced for Netflix (NFLX) to kick earnings season into high gear.
The S&P 500 (^GSPC) gained 0.2% while the Dow Jones Industrial Average (^DJI) rose about 0.3% after closing with their latest declines. The Nasdaq Composite (^IXIC) also added roughly 0.1% after tech stocks ended over 1% lower in the prior session.
Stocks have struggled amid concerns inflation is no longer cooling and the Federal Reserve could ease back on interest rate cuts. That has put corporate earnings center stage as investors watch closely how well reports match up with high expectations.
Signs of strong AI demand in TSMC’s results revived optimism for chip and tech stocks (XLK), which drove the pullback on Wednesday. The Taiwanese chip giant, seen as a bellwether for the industry, flagged “insatiable” appetite for AI as it posted a quarterly profit beat.
The earnings spotlight now shifts to Netflix, as the focus shifts to tech stocks, including the “Magnificent” group of companies. The streaming leader’s financial update later Thursday is seen by some as the first real test for stocks this earnings season, given megacap techs are still playing a big part in pushing markets higher.
Meanwhile, the market is still keeping one eye on debate over whether the Federal Reserve could hold off from cutting interest rates this year, given the chances of a “no landing” for the economy. Appearances by policymakers including John Williams and Raphael Bostic are on the docket for Thursday.
Initial jobless claims for the week ending April 13 came in at 212,000, according to Department of Labor data released on Thursday. The reading came in below a consensus estimate of 215,000 compiled by Bloomberg.
US bond yields slipped from recent five-month highs, easing pressure on stocks. The 10-year Treasury yield (^TNX) was trading near 4.56%.
Live3 updates