US stock futures held steady today, with Treasury yields retreating slightly from their earlier highs, as economic data fueled hopes that the Federal Reserve might cut interest rates later this year.

Key Economic Indicators: A Mixed Bag

Retail sales rose 0.4% in December, falling short of economists’ 0.6% forecast. Meanwhile, initial jobless claims increased to 217,000 last week, slightly above expectations. On a brighter note, the Philadelphia Fed Index—a measure of business conditions—exceeded estimates, offering some optimism about the economic outlook.

These mixed signals followed Wednesday’s Consumer Price Index (CPI) data, which showed core inflation coming in slightly below expectations. This has bolstered market bets on potential policy easing by the Fed. Futures contracts for the Nasdaq 100 edged up 0.2%, while S&P 500 futures hovered just above flat. US 10-year Treasury yields rose two basis points after Wednesday’s 10-basis-point drop.

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Stock Highlights: Winners and Losers

Here’s a closer look at how major stocks fared:

UnitedHealth Group

• Performance: Shares dropped over 3%.
• Reason: The company’s Q4 revenue fell short of Wall Street expectations, posting $100.81 billion compared to the anticipated $101.76 billion. However, earnings exceeded estimates.

Morgan Stanley

• Performance: Gained 1%.
• Reason: Strong Q4 results, driven by a 29% jump in investment banking revenue. The bank reported earnings per share of $2.22 on $16.22 billion in revenue, beating forecasts of $1.70 per share on $15.03 billion.

Target

• Performance: Traded flat.
• Reason: The retailer raised its Q4 sales guidance, now expecting a 1.5% increase in comparable store sales, compared to its previous forecast of flat growth.

Southwest Airlines

• Performance: Dropped 2%.
• Reason: Citi downgraded the stock to “sell” from “neutral,” citing declining earnings quality and weaker free cash flow compared to pre-pandemic levels.

Taiwan Semiconductor Manufacturing (TSMC)

• Performance: Gained 4%.
• Reason: The chipmaker issued strong revenue guidance for the current quarter, projecting $25–$25.8 billion, surpassing analysts’ expectations of $24.6 billion.

US Bancorp

• Performance: Fell 2.9%.
• Reason: Mixed Q4 results. Adjusted earnings per share of $1.07 slightly beat estimates, but its net interest margin of 2.71% came in below expectations.

Bank of America

• Performance: Flat.
• Reason: Q4 results topped expectations, with earnings of 82 cents per share on $25.5 billion in revenue, compared to forecasts of 77 cents per share on $25.19 billion.

DuPont De Nemours

• Performance: Flat.
• Reason: The company announced a shift in its restructuring plans, deciding to accelerate the separation of its electronics business while abandoning the spin-off of its water division.

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Market Outlook

The market’s cautious tone reflects uncertainty about the Federal Reserve’s next moves. While inflation data and softer retail sales hint at the potential for rate cuts, strong pockets of corporate performance—such as Morgan Stanley and TSMC—show resilience in the economy. Investors will likely keep a close eye on upcoming data to gauge the Fed’s policy direction.