Thursday’s big stock stories: What’s likely to move the market in the next trading session

Apple announced plans to invest an additional $100 billion in U.S. companies and suppliers over four years, following CEO Tim Cook's meeting with President Trump, with AAPL shares rising 5% Wednesday. Investors are also anticipating initial jobless claims data and earnings reports from Eli Lilly and Block. The market will also see the Nasdaq debut of space company Firefly Aerospace (FLY), against a backdrop of strong performance from recent tech listings, exemplified by Circle's 421% surge since its IPO.

Analysis

The market is exhibiting a moderately positive tone, primarily driven by Apple's (AAPL) announcement to invest an additional $100 billion in U.S. suppliers over four years. This news, following CEO Tim Cook's meeting at the White House, propelled AAPL shares up 5% on Wednesday, although the stock remains 18% below its December high. The positive sentiment extended to Apple's potential supply chain, with Corning and GlobalFoundries shares rising 5% and 8% respectively in after-hours trading. Investor focus is now shifting to key upcoming corporate earnings and economic data. Eli Lilly (LLY) is set to report amidst negative momentum, with its stock down 23% from its 52-week high, creating a critical catalyst for the pharmaceutical firm. In contrast, Block (SQ) will report after a significant 61% gain in the last three months, placing high expectations on its results. The market for new listings appears robust, with the upcoming Nasdaq debut of Firefly Aerospace (FLY) set against a backdrop of exceptional returns from recent IPOs, including Circle's 421% surge since going public. Other consumer-facing stocks like Pinterest (PINS) and e.l.f. Beauty (ELF) have also demonstrated strong recent momentum, with gains of 45% and 63% respectively over the past three months, though they remain well below their historical highs.

Key Decisions for Investors

• Given Apple's $100 billion domestic investment plan, investors should evaluate potential beneficiaries within its U.S. supply chain, as indicated by the immediate positive reaction in shares of Corning and GlobalFoundries.
• The divergent pre-earnings performance of Eli Lilly, down 23% from its high, and Block, up 61% in three months, presents distinct opportunities; investors should watch LLY for a potential reversal on strong results and SQ for confirmation of its high valuation.
• The remarkable performance of recent IPOs signals strong speculative appetite, making the debut of Firefly Aerospace (FLY) a key barometer for risk sentiment in the new-issue market.
• For high-momentum stocks like Pinterest and e.l.f. Beauty that have surged recently but are still far off prior peaks, it is prudent to assess the sustainability of their rallies ahead of any new catalysts.