Dow Jones and S&P500: Best Buy Drops 7%, Dick’s Rises 5%, Banks Face Downgrades

What’s Driving the Stock Index Futures Today?

Dow futures remained flat early Tuesday following a record-breaking session for U.S. equities, as traders evaluated the potential impact of new tariff threats from President-elect Donald Trump. Despite these policy risks, optimism surrounding year-end seasonality and a favorable Treasury secretary nomination supported investor confidence.

At 13:17 GMT, Dow Futures are trading 44778.00, down 48.00 or -0.11%. S&P 500 Index Futures are at 6021.00, up 14.50 or +0.24% and Nasdaq Futures are trading 20939.75, up 59.50 or +0.28%.

How Are Tariff Threats Impacting Sentiment?

Trump has proposed imposing a 25% tariff on goods from Mexico and Canada and a 60% duty on Chinese imports. While these measures have sparked concerns over potential trade disruptions, many investors remain skeptical about their implementation. Analysts suggest the market’s muted reaction stems from the perception that these threats might be softened during policy negotiations.

Treasury Nomination Fuels Optimism

The nomination of hedge fund executive Scott Bessent as Treasury secretary provided a boost to market sentiment. Bessent is widely viewed as a champion of financial markets, and his appointment could counterbalance Trump’s aggressive trade stance. Following the announcement, Treasury yields declined, signaling confidence in his potential to stabilize economic policy.

Earnings Reports Drive Stock-Specific Moves

Best Buy shares dropped more than 7% in premarket trading after the electronics retailer missed earnings and revenue estimates. The company reported adjusted earnings of $1.26 per share, falling short of the $1.29 expected, with revenue of $9.45 billion missing the $9.63 billion consensus. Best Buy also cut its full-year sales outlook, compounding concerns about consumer demand.

Conversely, Dick’s Sporting Goods shares jumped over 5% premarket after beating third-quarter forecasts. The company reported $2.75 per share in adjusted earnings on $3.06 billion in revenue, surpassing estimates of $2.68 and $3.03 billion, respectively. A raised full-year outlook and a 46% year-to-date gain further bolstered investor enthusiasm.

Amgen shares slid more than 3% after its weight-loss drug trial results fell short of expectations. Although patients lost up to 20% of their weight over a year, investors had anticipated stronger outcomes.

Are Bank Stocks Losing Their Momentum?

HSBC downgraded Goldman Sachs and Morgan Stanley to “hold” from “buy” after a strong year for both stocks. Goldman Sachs has surged 56.3% year-to-date, while Morgan Stanley climbed 43.3%. Despite increasing price targets to $608 and $131, respectively, HSBC cited limited upside potential as both stocks appear fully valued.

Market Forecast: Where Could the Market Be Headed Next?

While bullish sentiment dominates, risks surrounding tariff policies and mixed earnings reports may inject volatility into markets. Traders will focus on the Federal Reserve’s meeting minutes for clarity on the future of monetary policy.

The market remains cautiously optimistic as year-end momentum, strong small-cap performance, and support from a market-friendly Treasury nomination offset sector-specific setbacks. Light trading volumes during the holiday week suggest that major moves will depend on new developments in trade policy or economic data.

For a look at all of today’s economic events, check out our economic calendar.