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

As we approach the final trading session of the week on Friday, February 21, 2025, several key developments are poised to influence market movements.

Market Recap

On Thursday, U.S. stock markets experienced modest declines. The Dow Jones Industrial Average fell by 1%, the S&P 500 dipped 0.4%, and the Nasdaq Composite decreased by 0.5%. These movements were influenced by a mix of corporate earnings and investor sentiment.

Corporate Earnings Impact

• Walmart: The retail giant's stock dropped 6.5% after issuing weaker-than-expected earnings guidance. This cautious outlook has raised concerns about consumer spending trends.

• Nvidia: Following the release of DeepSeek's competitive AI model, R1, Nvidia's stock experienced a significant sell-off, leading to a $600 billion loss in market capitalization. CEO Jensen Huang addressed the situation, emphasizing that despite R1's capabilities, substantial computing power remains essential for AI development, underscoring Nvidia's continued relevance in the sector.

Upcoming Earnings to Watch

Investors should monitor the following companies scheduled to report earnings on Friday:

• Arbor Realty Trust (ABR): Expected to report earnings per share (EPS) of $0.41, representing a 12.77% decrease compared to the same quarter last year.

• Sunstone Hotel Investors (SHO): Anticipated EPS of $0.14, a 26.32% decrease from the same period last year.

• Federal Agricultural Mortgage Corporation (AGM): Projected EPS of $4.16, marking a 1.46% increase compared to the same quarter last year.

Economic Indicators

The Federal Reserve released minutes from its late January meeting, providing insights into its monetary policy direction. Additionally, housing market data, including existing-home sales for January, is expected to offer further insights into the economy's health.

Global Market Movements

Asian markets are on track for a sixth consecutive weekly gain, with Alibaba leading the surge following strong earnings. This positive momentum in Asian equities may have a ripple effect on global markets.

Investor Considerations

Given the current market volatility, investors are advised to adopt defensive strategies and closely monitor corporate earnings and economic indicators. Staying informed on these developments will be crucial for making strategic investment decisions in the upcoming trading session.