Global Stocks Mixed as Earnings Season Unfolds

Major stock averages posted their second straight winning day, with Jim Cramer commenting that President Donald Trump's actions will determine if the trend continues. The S&P 500 is down 7% since the election, while the Dow Transports are down 18%. Earnings reports from American Airlines, Alphabet, Intel, and Skechers are on the radar for Thursday, with some airlines and retail stocks, such as Southwest Airlines and Kohl's, already showing mixed results and declines. Stocks like Uber and Chipotle Mexican Grill are also being watched, with Uber's stock up 22% in 2025 and Chipotle's stock down 2% after hours following a miss on revenue estimates.

European stocks are expected to open flat to mixed on Thursday as a relief rally stalls. The FTSE 100 is predicted to rise 6 points, the DAX to stay flat, while the CAC and FTSE MIB are expected to fall. Earnings reports are due from several major companies, including Unilever and BNP Paribas, and data releases include French consumer confidence and EU new car registrations. The relief rally follows a surge in US stocks after President Donald Trump said he wouldn't remove Federal Reserve Chairman Jerome Powell. Analysts at Wolfe Research and Deutsche Bank caution that the market may not have fully priced in a recession, posing downside risks to stocks.

The S&P 500 futures rose 0.3% on Wednesday night after the major averages posted a second straight winning day, with the S&P 500 gaining 1.7%, the Nasdaq Composite jumping 2.5%, and the Dow adding over 400 points. Stocks got a lift from hopes that trade tensions between the US and China would ease, following comments from Trump and Treasury Secretary Scott Bessent. IBM slumped 6% in extended trading after maintaining its full-year guidance despite beating earnings expectations, while Southwest Airlines lost 2% after cutting its schedule and pulling its earnings guidance. Investors will look to quarterly earnings reports from Alphabet, Intel, and PepsiCo, as well as economic data including durable goods orders and weekly jobless claims, on Thursday. Analysts remain cautious, with Wolfe Research strategists warning that "bear market rallies are the most violent" and Deutsche Bank saying the market hasn't fully priced in a recession.