By Alex Financials

Apple’s Strong Earnings Propel Market Gains

On Friday, January 31, 2025, Wall Street managed to reduce its weekly losses, buoyed by robust earnings reports from major companies, notably Apple Inc. (AAPL). The S&P 500 rose by 0.7%, setting it on course for a 0.2% weekly gain, despite earlier concerns about the artificial intelligence sector’s impact on investments. Apple’s stock climbed 1.4% after reporting better-than-expected quarterly profits, with record revenue from its services segment offsetting a decline in iPhone sales.

Tech Sector Sees Mixed Results

The technology sector experienced varied outcomes. Intel Corporation (INTC) shares increased by 0.3% despite a 7% drop in fourth-quarter revenue, as the figures surpassed analyst expectations. Visa Inc. (V) saw its stock rise by 1.1% following better-than-anticipated earnings, while rival Mastercard Incorporated (MA) experienced a slight decline.

Energy Sector Faces Challenges

In the energy sector, Chevron Corporation (CVX) shares fell 4.1% after missing earnings estimates. Exxon Mobil Corporation (XOM) also saw a slight decline, despite surpassing profit expectations.

Healthcare and Retail Sectors Highlight Notable Movements

AbbVie Inc. (ABBV) surged 7% with better-than-expected earnings, while Walgreens Boots Alliance Inc. (WBA) saw a significant 14% drop after suspending its quarterly dividend.

Market Outlook Amid Economic Indicators

The Federal Reserve maintained steady interest rates, reflecting the U.S. economy’s strength and persistent inflation above its 2% target. U.S. GDP grew at an inflation-adjusted 2.3% annual rate in Q4, with strong consumer spending increasing by 4.2%. However, real exports and inventory levels were weak. The stock market significantly influences consumer spending, with equities contributing to household wealth. Any market correction could negatively impact consumer behavior.

Overall, the stock market displayed resilience, with strong corporate earnings offsetting concerns in various sectors.