Stocks Climb on Solid US Economic News and Easing AI Jitters

Economic Indicators - The market's focus includes corporate earnings results and economic news, with the release of the FOMC meeting minutes and various economic indicators expected this week [1] - Initial weekly unemployment claims are expected to decline by 2,000 to 225,000, while the Philadelphia Fed business outlook survey is anticipated to fall by 5.3 to 7.3 [1] - The December trade deficit is expected to widen to $86.0 billion, and January pending home sales are projected to increase by 2.0% month-over-month [1] - Q4 GDP is expected to expand by 3.0% on a quarter-over-quarter annualized basis, with the core price index expected to climb by 2.6% [1] Manufacturing and Housing Data - US January manufacturing production rose by 0.6% month-over-month, exceeding expectations of 0.4% and marking the largest increase in 11 months [2] - December housing starts increased by 6.2% month-over-month to a five-month high of 1.404 million, surpassing expectations of 1.304 million [2] - December building permits rose by 4.2% month-over-month to a nine-month high of 1.448 million, also exceeding expectations of 1.400 million [2] - December capital goods new orders (nondefense ex-aircraft and parts) rose by 0.6% month-over-month, stronger than the expected 0.3% [2] Stock Market Performance - Stock indexes are rising due to solid US economic news, with the S&P 500 Index up by 0.36%, the Dow Jones Industrial Average up by 0.47%, and the Nasdaq 100 Index up by 0.40% [4] - Over three-quarters of S&P 500 companies have reported earnings, with 75% beating expectations, and S&P earnings growth is expected to climb by 8.4% in Q4 [4] - Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by 4.6% [4] Company-Specific Developments - Garmin Ltd reported Q4 revenue of $2.12 billion, above the consensus of $2.00 billion, and forecasts full-year revenue of $7.90 billion, stronger than the consensus of $7.61 billion, leading to a stock increase of over 15% [10] - Global Payments is up more than 11% after forecasting full-year adjusted EPS of $13.80 to $14.00, well above the consensus of $13.59 [11] - Caesars Entertainment reported Q4 same-store adjusted EBITDA of $901.0 million, above the consensus of $900.1 million, resulting in a stock increase of over 11% [11] - Pitney Bowes reported Q4 adjusted EPS of 45 cents, above the consensus of 38 cents, and forecasts 2026 adjusted EPS of $1.40 to $1.60, stronger than the consensus of $1.38, leading to a stock increase of over 9% [12]