Microsoft Rout Weighs on the Broader Market

Economic Indicators - US weekly initial unemployment claims fell by 1,000 to 209,000, indicating a slightly weaker labor market than the expected 205,000, while continuing claims decreased by 38,000 to a 6-month low of 1.827 million, showing a stronger labor market than the expected 1.850 million [1] - US November factory orders rose by 2.7% month-over-month, exceeding expectations of 1.6% and marking the largest increase in 6 months [6] - The US November trade deficit widened to $56.8 billion, larger than the expected $44.0 billion and the largest deficit in 4 months [5] Stock Market Performance - Stock indexes mostly settled lower on Thursday, with the S&P 500 and Dow Jones Industrial Average falling to 1-week lows, influenced by concerns over AI spending and disappointing earnings from Microsoft [4] - The S&P 500 Index closed down by 0.13%, while the Dow Jones Industrial Average closed up by 0.11%, and the Nasdaq 100 Index closed down by 0.53% [5] - Meta Platforms saw a rally of more than 10% after providing a stronger-than-expected revenue outlook, contributing positively to the market [3][19] Company Earnings - 77% of the 143 S&P 500 companies that have reported earnings thus far have beaten expectations, with S&P earnings growth expected to climb by 8.4% in Q4 [8] - Meta Platforms reported Q4 revenue of $59.89 billion, surpassing the consensus of $58.42 billion, and forecasted Q1 revenue between $53.5 billion and $56.5 billion, well above the consensus of $51.27 billion [19] - International Business Machines reported Q4 revenue of $19.69 billion, stronger than the consensus of $19.21 billion, contributing to its stock's rise of more than 5% [20] Sector Movements - Energy producers benefited from a more than 3% jump in WTI crude oil prices, reaching a 4.25-month high, following President Trump's comments on Iran [2] - Cryptocurrency-exposed stocks retreated as Bitcoin fell more than 5% to a 2.25-month low, impacting companies like MicroStrategy and Coinbase [15] - Companies like Honeywell International and C.H. Robinson Worldwide reported better-than-expected earnings, with Honeywell forecasting full-year adjusted EPS between $10.35 and $10.65, above the consensus of $10.41 [22]