Stocks Mixed After the Fed Pauses Rate Cuts

Economic Indicators - US MBA mortgage applications fell by 8.5% in the week ended January 23, with the purchase mortgage sub-index down 0.4% and the refinancing mortgage sub-index down 15.7% [1] - The average 30-year fixed rate mortgage rose by 8 basis points to 6.24% from 6.16% in the prior week [1] Oil and Currency Markets - WTI crude oil climbed to a 4-month high following President Trump's comments urging Iran to negotiate a deal, with a fleet of US warships entering the region [2] - The dollar index is recovering from a nearly 4-year low, influenced by Trump's remarks on the dollar's weakness [2] Stock Market Performance - Stock indexes are mixed, with the S&P 500 reaching a new all-time high and the Nasdaq 100 hitting a 3-month high, driven by strength in chipmakers and AI infrastructure stocks [4] - ASML Holding NV reported record Q4 bookings of 13.2 billion euros, significantly above the consensus of 6.85 billion euros, boosting market optimism [4] Earnings Reports - 81% of the 83 S&P 500 companies that have reported earnings have beaten expectations, with S&P earnings growth expected to rise by 8.4% in Q4 [9] - Major companies reporting earnings include Microsoft, Meta Platforms, and Tesla, with Apple reporting after the close on Thursday [9] Company-Specific Movements - Seagate Technology Holdings is up more than 17% after positive earnings results, while other chipmakers like Intel and Texas Instruments are also seeing gains [15] - F5 Inc. reported Q4 net revenue of $822.5 million, exceeding the consensus of $758.8 million, and raised its full-year revenue forecast [16] - PPG Industries reported Q4 net sales of $3.91 billion, above the consensus of $3.78 billion [17] Market Outlook - The market is focused on new tariff news and the prospects for a continued resolution to fund the government, with the FOMC expected to keep the fed funds target range unchanged [8] - Initial weekly unemployment claims are expected to increase by 5,000 to 205,000, and the November trade deficit is expected to widen to -$44.10 billion [8]