Investing.com – U.S. Stock Futures Advance

US stock futures advanced on Thursday, indicating a potential continuation of gains from the previous session. Investors prepared for new economic data and bank earnings following encouraging inflation reports and strong earnings from major U.S. banks. Additionally, TSMC announced better-than-expected fourth-quarter profits, thanks to AI-driven demand for its chips.

1. Futures Higher

U.S. stock futures rose, predicting further gains following a surge on Wall Street driven by soft inflation data and robust bank earnings. As of 03:30 ET (08:30 GMT):
– Dow futures: +61 points (0.1%)
– S&P 500 futures: +23 points (0.4%)
– Nasdaq 100 futures: +123 points (0.6%)

The averages surged on Wednesday, experiencing their largest daily percentage gains since November 6 after the better-than-expected core consumer price growth data for December boosted hopes for Federal Reserve interest rate cuts this year. With this positive outlook on inflation, the U.S. Treasury note yield also dropped.

2. Retail Sales Due

On Thursday, investors will review various U.S. economic data, including retail sales and manufacturing activity. Economists predict a 0.6% month-on-month increase in retail sales for December, a slight slowdown from 0.7% in the previous month. Meanwhile, the Philadelphia Fed’s factory index is anticipated to improve from -16.4 to -5.2, though remaining in negative territory, implying manufacturing contraction.

Weekly initial jobless claims data will also be released, following strong employment reports.

3. More Bank Earnings Ahead

Bank of America and Morgan Stanley are set to release quarterly results before Wall Street opens, following strong performances from peers like JPMorgan Chase and Goldman Sachs, which reported record profits. Executives expressed optimism about future business conditions, citing anticipated favorable policies from the incoming Trump administration.

4. TSMC Profit Tops Estimates

Taiwan Semiconductor Manufacturing Co. (TSMC) posted unexpected fourth-quarter profits due to heightened demand for AI-related chips. TSMC’s net income surged 57% to T$374.68 billion ($11.60 billion), exceeding expectations. The company forecast higher capital expenditures for 2025, driven by AI demand increases.

5. Crude Muted

Oil prices remained stable on Thursday, building on recent highs influenced by weaker U.S. inflation, new sanctions on Russian oil, and notable U.S. crude inventory decreases. As of 03:31 ET, U.S. crude futures were flat, while Brent crude traded down 0.1% to $81.94 per barrel. Oil prices rose over 2% on Wednesday to their highest levels since July due to favorable inflation reports encouraging optimism for economic growth.