The US dollar saw another session of small gains against most major currencies on Thursday, with the dollar index (USDX) up by a mere 0.19%, as investors remain on the sidelines with the prospect of trade tariffs under U.S. President Donald Trump, who threatened to impose steep tariffs on the BRICS bloc if they move ahead to create their own currency and move away from the dollar. Trump also stated that he is planning to implement 25% tariffs on Canada and Mexico, and 10% tariffs on China.
Positive sentiment has returned to Wall Street, as all three main stock indices moved higher as Apple and Microsoft, among other companies, released their earnings reports. Looking ahead, investors are focused on Friday's inflation data release, which will provide further clues about the Federal Reserve's interest rate policy after its more aggressive stance earlier this week.
Apple's first-quarter earnings exceeded analysts' expectations, driven by strong growth in its services business, which helped offset declining iPhone sales amid intensifying competition in China's smartphone market. Following the earnings release, Apple's stock price dipped by 1% in after-hours trading. The company reported earnings per share of $2.42 on revenue of $124.3 billion for the quarter ending December 28. These figures surpassed analysts' forecasts of $2.36 per share and $124.12 billion in revenue.
In other news, Caterpillar's stock price fell 4.6% due to disappointing fourth-quarter revenue and a cautious outlook for 2025. United Parcel Service saw an even larger decline, dropping over 14%, after lowering its 2025 forecast and significantly reducing its deliveries for Amazon by more than half.
Investors are eagerly awaiting earnings reports from major players like AbbVie, Exxon Mobil, Chevron, Novartis, and Colgate-Palmolive. These companies span diverse sectors, including pharmaceuticals, energy, and consumer goods, and their results will offer valuable insights into the overall economic landscape.
For Friday the focus could turn to the release of the Core PCE price index, the Fed’s favorite gauge for inflation, Canada’s GDP data, the US employment cost index, US personal income and personal spending and the Chicago PMI.