NEW YORK (AP) — U.S. stocks are drifting at the open of trading as the market’s big burst following Donald Trump’s election continues to cool. The S&P 500 added 0.1% in early Thursday trading. The Dow Jones Industrial Average rose 121 points, and the Nasdaq composite gained 0.2%. The Walt Disney Co. helped lead the market after reporting a stronger profit than analysts expected. ASML, a major supplier to the global chip industry, also gave some encouraging signals for semiconductor sales. But Tesla was on track for just its second loss since Election Day and was helping to keep indexes in check.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
(AP) — Markets on Wall Street rose modestly in early trading Thursday as more corporate earnings are released ahead of another inflation update from the U.S. government.
Futures for the S&P 500 were up just 0.1% before the bell, while futures for the Dow Jones Industrial Average rose 0.2%.
Disney shares jumped more than 6% after it posted stronger profits for the fourth quarter than Wall Street expected. Disney's results were boosted by big box office receipts from Pixar's “Inside Out 2” and Marvel's “Deadpool & Wolverine," the company said.
Subscribers to its streaming service, Disney+, also came in higher than expected and the entertainment behemoth raised its 2025 guidance ahead of analysts' projections.
Tapestry shares climbed 7.3% after the luxury fashion company said it's terminating its merger with Capri, another luxury brand owner. The companies agreed to a $8.5 billion deal in August 2023 to unite the makers of Coach and Michael Kors handbags, but the tie-up has faced numerous challenges, including an FTC lawsuit to block the deal on antitrust grounds.
Capri shares tumbled 5.7%.
Later Thursday, the government reports on inflation at the wholesale level.
On Wednesday, U.S. stocks drifted to a mixed finish after the latest inflation update boosted hopes that a cut to interest rates next month will bring more help for the economy.
U.S. consumer inflation accelerated in October, but an underlying measure called “core inflation” did not rise. Such core inflation can be a better predictor of future trends, economists say, so the figures added to expectations for more help from the Federal Reserve.
T rump’s victory in the presidential election has raised uncertainty over the Fed’s future course. The U.S. central bank began cutting interest rates from their two-decade high in September to keep the job market hummin g after bringing inflation nearly all the way down to its target of 2%. It cut again earlier this month, and traders now see an improved probability of roughly 80% for a third cut at its meeting next month, according to data from CME Group.
Economists say Trump’s preferences for lower tax rates, higher tariffs and less regulation could ultimately lead to higher U.S. government debt and inflation, but also bring faster economic growth.
While lower interest rates can give a boost to the economy and to prices for investments, they can also fuel inflation.
In Europe at midday, Germany's DAX surged 1.3% and the CAC 40 in Paris advanced 1%. Britain's FTSE 100 was 0.4% higher.
The dollar was trading at 155.95 Japanese yen, up from 155.49 yen, reflecting expectations that the greenback will gain against other currencies under policies anticipated with the incoming administration of President-elect Donald Trump.
Japan's Nikkei 225 index fell 0.5% to 38,535.70 and the Kospi in South Korea gained 0.1% to 2,418.86. Australia's S&P/ASX 200 gained 0.4% to 8,224.00.
Chinese markets tumbled, with the Hang Seng in Hong Kong falling 2% to 19,435.95. The Shanghai Composite index lost 1.7% to 3,379.84.
Bangkok's SET lost 0.2% and Taiwan's Taiex fell 0.6%, while the Sensex in India shed 0.2%.
A stronger dollar tends to put strain on other economies, noted Stephen Innes of Capital Economics. The Thai baht has also weakened against the dollar since the U.S. election, as has the Chinese yuan, or renminbi, which now stands at 7.2245 per dollar and was trading at about 7 yuan per dollar in early October.
“For Asia, particularly those economies closely linked to China, the dollar's dominance is poised to become an economic wrecking ball,” he said in a commentary. “Countries with hefty USD-denominated debt are bracing for impact,” he added.
In the crypto market, bitcoin was up less than 1% at $91,206, after crossing above $93,000 as cryptocurrencies generally soared. Trump has embraced cryptocurrencies, pledging to make the U.S. the crypto capital of the world.
Dogecoin, a cryptocurrency that’s been a favorite of Tesla’s Elon Musk, also gave up some of its recent gains, falling 1.6% to 39 cents. Trump named Musk as one of the heads of a “Department of Government Efficiency,” or DOGE for short.
In other dealings early Thursday, U.S. benchmark crude oil rose 42 cents to $68.85 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, added 40 cents to $72.68 per barrel.
The euro fell to $1.0538 from $1.0587.
