As market dynamics continue to evolve, investors remain keenly attuned to the fluctuations of major financial indicators. The recent four-day decline in S&P 500 futures has raised questions about the resilience of the broader market and the factors influencing its recovery.
Meanwhile, Nvidia, a key player in the tech sector, stands poised to release its earnings report, which could significantly impact its stock performance.
S&P 500 futures recover after a four-day decline, with Nvidia showing growth ahead of its earnings report
Stock futures increased on Wednesday after the S&P 500 experienced its fourth consecutive day of declines. Investors are eagerly anticipating earnings from the influential company Nvidia.
Futures for the Dow Jones Industrial Average rose by 120 points, equivalent to 0.3%. The Nasdaq-100 futures climbed 0.7%, while S&P 500 futures increased by 0.5%.
Markets are coming off a sluggish session, with the S&P 500 dropping 0.5% and the Nasdaq Composite plunging nearly 1.4%. Both indices marked their fourth day of losses. The Dow, comprising 30 stocks, was an exception, managing a gain of roughly 0.4%.
A weaker-than-expected consumer confidence report from the Conference Board exerted pressure on stocks on Tuesday. A string of recent data, including disappointing retail sales and a decline in consumer sentiment, has elevated traders’ concerns about the economy over the past week, leading to declines in major averages.
Nvidia’s fourth-quarter earnings, set to be released after the market closes on Wednesday, may act as the next market mover. The stock gained 2% in premarket trading on Wednesday.
The earnings report comes at a crucial time for Nvidia. The rise of DeepSeek has raised doubts about the longevity of the once-thriving artificial intelligence sector. The chip leader and other high-flying stocks are showing signs of waning momentum, with Nvidia down over 5% in 2025.
“Once the earnings report comes out tomorrow, I expect it will mirror September,” stated Aswath Damodaran, finance professor at NYU Stern School of Business, during an interview on CNBC’s “Closing Bell” on Tuesday.
“It will likely be similar to the September quarter, where they exceed analyst expectations, but the market may still be let down because it seems expectations are set higher than what analysts anticipate for the company,” he added.
On Wednesday, economic indicators to watch include new home sales and building permits. However, the key highlight for investors will be the release of the personal consumption expenditures price index on Friday, which is the Federal Reserve’s preferred measure of inflation.
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Mortgage rates have decreased to their lowest level since mid-December; however, demand continues to remain below expectations
Mortgage interest rates declined again last week, reaching their lowest point in two months, yet mortgage demand remained stagnant. According to the Mortgage Bankers Association’s seasonally adjusted index, total mortgage application volume fell by 1.2% compared to the prior week.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan amounts ($766,550 or lower) dropped to 6.88% from 6.93%, while points decreased to 0.61 from 0.66 (inclusive of origination fees) for loans with a 20% down payment.
“Treasury yields declined due to softer consumer spending data, reflecting a generally more cautious consumer outlook regarding the economy and job market. This led to a reduction in mortgage rates, with the 30-year fixed rate falling to 6.88%, the lowest since mid-December,” explained Joel Kan, vice president and deputy chief economist at MBA.
Refinance applications, which had been strong in January and early February, decreased by 4% this week but were still 45% higher than the same week last year. At this time last year, mortgage rates were 16 basis points higher.
“While overall refinance application activity is still relatively weak, FHA refinance applications saw an 8% increase this week,” Kan noted.
Mortgage applications for purchasing a home remained unchanged over the week and were up 3% compared to the same week last year. The re-sale market is experiencing more supply, partly due to homes taking longer to sell. However, despite the increased options, prices remain stable, as inventory levels are still historically low.
Mortgage rates continued to decrease at the start of this week, based on separate data from Mortgage News Daily. Over the past four business days, the average top-tier mortgage rate has dropped by 0.22%. While this may seem minor, rates have fluctuated within a very tight range over the last month.
“In summary, bonds are currently in demand,” stated Matthew Graham, chief operating officer at Mortgage News Daily, emphasizing that rising demand leads to falling rates. “The prevalent explanations pertain to expectations of a slowdown in global economic growth stemming from domestic tariffs and cost-cutting measures.”
Lowe’s surpasses Wall Street projections while emerging from a decline in sales
Lowe’s exceeded Wall Street’s expectations for both quarterly earnings and revenue on Wednesday, indicating that sales may experience modest growth in the upcoming year.
The company projected its full-year sales to fall between $83.5 billion and $84.5 billion, with the upper limit surpassing its total revenue of $83.67 billion for fiscal 2024. It anticipates comparable sales to remain flat or increase by up to 1% year-over-year, alongside earnings per share expected to be in the range of $12.15 to $12.40.
Here are the fiscal fourth-quarter results from the company compared to the forecasts made by analysts, as surveyed by LSEG:
- Earnings per share: $1.93 adjusted vs. $1.84 expected
- Revenue: $18.55 billion vs. $18.29 billion anticipated
During the three-month period that concluded January 31, Lowe’s reported a net income of $1.13 billion, translating to $1.99 per share, up from $1.02 billion, or $1.77 per share, in the same period last year. Revenue decreased from $18.60 billion a year prior.
Lowe’s adjusted earnings per share figure did not include an $80 million pre-tax gain from the 2022 sale of its Canadian retail division, which contributed an extra 6 cents per share to the fourth-quarter earnings.
Investors are eager for indications that the home improvement sector may rebound. Declining housing turnover and rising borrowing costs have pushed some customers to the sidelines. For fiscal 2024, Lowe’s net sales reached $83.67 billion, which was a 3% decrease from the previous fiscal year.
Lowe’s shares climbed over 2% in early trading following the firm’s outlook, which suggested potential upward trends in the year ahead.
For the quarter, comparable sales increased by 0.2%, aided by online sales, robust single-digit growth among home professionals, and revenue stemming from rebuilding efforts post-Hurricanes Milton and Helene. This modest gain ended a streak of eight consecutive quarters of declining comparable sales and surpassed Wall Street’s expectations, which had predicted a 1.8% decline.
However, Lowe’s noted that these gains faced some headwinds due to pressures on discretionary DIY projects.
Meanwhile, Home Depot, a competitor, slightly surpassed Wall Street’s fourth-quarter estimates on Tuesday, also breaking an eight-quarter trend of declining comparable sales. Nonetheless, Home Depot CFO Richard McPhail mentioned the company does not foresee changes in the housing market or mortgage rates, suggesting that consumers might adapt to higher rates as the “new normal,” according to CNBC.
On Tuesday, Lowe’s shares closed at $242.39. As of that close, shares had declined nearly 2% this year, trailing the S&P 500, which gained roughly 2% over the same timeframe.
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GM has announced an increase in its quarterly dividend and the initiation of a $6 billion stock repurchase program
General Motors is increasing its quarterly dividend and launching a new $6 billion share repurchase initiative as the company seeks to reward investors in the face of declining industry sales and earnings.
On Wednesday, GM unveiled a 25% hike in its quarterly dividend to 15 cents per share, aligning it with competitor Ford Motor. The elevated dividend is expected to kick in with the company’s next scheduled payout, which is set for announcement in April.
As part of the $6 billion repurchase strategy, GM anticipates completing $2 billion in buybacks during the second quarter.
“The GM team is executing effectively across all three components of our capital allocation strategy: reinvesting in the business for sustainable growth, maintaining a robust investment-grade balance sheet, and returning capital to our shareholders,” stated GM CEO Mary Barra in a press release.
Last month, Barra indicated that the company would keep returning capital to shareholders this year, contingent upon board approval. Since the beginning of 2023, the automaker has revealed $16 billion in stock repurchase plans, leading to the elimination of over 1 billion shares outstanding.
Despite these measures and reporting strong quarterly performance that frequently surpasses Wall Street’s expectations, GM’s shares have declined more than 12% year-to-date.
Analysts on Wall Street have pointed to stagnant industry sales, uncertainty over tariffs, and a shortage of growth prospects as factors putting pressure on the stock.
GM noted that the total shares repurchased through the $2 billion accelerated share buyback will depend on the average daily volume-weighted price of GM’s common stock during the program’s duration, which will be administered by JPMorgan and Barclays.
In addition to the accelerated plan, GM has another $4.3 billion available under its share buyback authorizations “for opportunistic share repurchases,” according to the company. This includes $300 million from its previous $6 billion buyback plan initiated in June.
At the end of last year, GM reported having fewer than 1 billion shares outstanding, reaching a target set earlier in the year by GM CFO Paul Jacobson.
“We are confident in our business strategy, our balance sheet is solid, and we will be flexible in adapting to changes in public policy,” Jacobson asserted in a statement. “The repurchase authorization approved by our board reflects our ongoing commitment to our capital allocation policy.”
GM’s guidance for 2025 estimates net income attributable to stockholders between $11.2 billion and $12.5 billion, or $11 to $12 per share; adjusted earnings before interest and taxes (EBIT) ranging from $13.7 billion to $15.7 billion, or $11 to $12 adjusted EPS; and adjusted automotive free cash flow projected between $11 billion and $13 billion.
BP plans to reduce investment in renewables and increase focus on fossil fuels in strategy revision
British oil giant BP announced on Wednesday its intention to boost annual investments in oil and gas to $10 billion by 2027 as part of a major strategic overhaul.
The struggling energy company also revealed plans to reduce its yearly capital expenditure to a range of $13 to $15 billion during the same period, with a target to achieve $20 billion in asset sales by the end of 2027.
According to BP, investments in transition-related businesses will see a “significantly lower” allocation in the years ahead. The firm stated that expenditure in these areas is now projected to be between $1.5 billion and $2 billion annually—over $5 billion below previous forecasts.
“Today marks a fundamental shift in BP’s strategy,” BP CEO Murray Auchincloss said in a statement.
“We are reallocating our capital to focus on our highest-returning operations to enhance growth, while vigorously seeking performance gains and cost reductions. This initiative is aimed at sustainably increasing cash flow and overall returns,” he added.
BP is set to provide more insights into its new strategy during its Capital Markets Update on Wednesday afternoon.
An investor day presentation, featuring Auchincloss and other leaders from the company, is slated to begin at 1 p.m. London time.
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Target has reached an agreement with athletic apparel brand Champion in an effort to boost sales within its apparel segment
Target is set to introduce a new brand as the retailer aims to entice more consumers to purchase clothing and various discretionary items — Champion.
On Wednesday, the budget-friendly retailer revealed it has secured a multi-year partnership with the sportswear label renowned for its hoodies and sweatpants. Champion was acquired by Authentic Brands Group from HanesBrands last year.
Beginning in August, Target will offer an exclusive collection of over 500 Champion items in most locations and online, featuring clothing for both adults and children, as well as sporting goods, accessories, and bags. Additionally, there will be a limited-edition selection of varsity-inspired apparel for men and women from Champion available in September, with most pricing under $40, the retailer noted.
This partnership comes as the Minneapolis-based chain seeks to enhance its stock performance and increase sales, particularly in more profitable sectors like apparel and home goods. While the company raised its sales projections for the fiscal fourth quarter, it did not adjust its profit expectations, as promotions attracted holiday shoppers during November and December.
In January, the big-box retailer indicated it anticipated comparable sales growth of around 1.5% for the holiday quarter, a figure that encompasses sales from its website and stores that have been open for at least 13 months.
For Target, apparel sales showed a year-over-year increase in the fiscal second quarter. However, they fell by about 4 percentage points sequentially in the fiscal third quarter, which company executives attributed to unfavorable weather, though they highlighted a solid performance in the women’s apparel segment.
The uptick in apparel sales was a factor behind the retailer’s raised sales forecast for the holiday quarter, according to Chief Commercial Officer Rick Gomez.
Target is scheduled to release its complete holiday-quarter results on Tuesday.
These results arrive as the retailer’s shares have declined roughly 16% over the past year, in contrast to the S&P 500’s approximately 17% gains within the same timeframe.
