Markets Mixed on Powell Testimony, Q4 Earnings

Tuesday, February 11, 2025

Market indexes were mixed today, after seeing all the majors in the red before the opening bell. The Dow closed up +123 points, +0.28%, while the S&P 500 squeaked by +2 points. The Nasdaq finished the session down -70 points, while the small-cap Russell 2000 closed down -12.

Fed Chair Addresses the Senate Today, House Tomorrow

Fed Chair Jerome Powell’s testimony before the Senate Banking Committee earlier today went without surprise. He said once again that the U.S. economy was “strong overall,” and again asserted that the Fed does not need “to be in a hurry to adjust [its] stance.” Current policy, as parroted by New York Fed President John Williams, is “well positioned.”

This is the first of two days for Powell on Capitol Hill; tomorrow he appears before the House Financial Services Committee, basically to say the same thing. However, new CPI data may have something to do with Powell’s outlook, or Congress’ questioning, or both. The Fed last cut rates 25 basis points back in December; it skipped its chance in January and is currently expected to forego another move at its meeting next month.

Big Afternoon for Earnings Reports: DASH, LYFT, GILD & More

DoorDash DASH saw shares initially fall -4.5% directly following Q4 results this afternoon which were mixed compared to Zacks consensus estimates, but have zoomed up +7% since. Earnings of 33 cents per share missed expectations by a penny, while revenues of $2.87 billion outpaced the $2.83 billion anticipated. Gross Margins and Q4 Orders were both up from estimates, though the company has missed on its bottom line in three of the past five quarters.

Check out the updated Zacks Earnings Calendar here.

Gilead Sciences GILD saw a nice bump from its Biktarvy HIV treatment in the past quarter; the company reported earnings of $1.90 per share versus estimates of $1.67, and a swing to the positive from the year-ago $1.72 per share. Revenues of $7.57 billion were well ahead of the $7.06 billion expected. Guidance for Q1 are up big on both top and bottom lines, and shares in late trading, while demonstrating some volatility, are currently +5%.

Lyft LYFT shares, however, are falling nearly -10% on its Q4 report released after today’s closing bell. Revenues met expectations at $1.55 billion for the quarter, but forward guidance for EBITDA and Gross Bookings. Lyft followed Uber’s earnings reported last week, which have helped hoist shares of Lyft’s rival.

Zillow Z also posted mixed numbers for its Q4 earnings, and its Class C shares are trading down -10% in after-hours. Earnings of 27 cents per share was 2 cents light of expectations, while revenues of $554 million was a solid beat over the Zacks consensus $540.6 million. Residential revenue grew +3% year over year, but a challenging market in Q1 is helping the selloff.