Wall Street remains stable following varied earnings reports

sales at U.S. retailers wasn’t as robust last month as economists had anticipated. Another report indicated an increase in the number of U.S. workers filing for unemployment benefits last week, while a third report revealed unexpected growth in manufacturing in the mid-Atlantic region combined.These varied reports collectively suggest that the U.S. economy is not currently headed towards a recession but may be exhibiting signs of a potential slowdown that could alleviate pressure on inflation. Traders’ expectations about the Federal Reserve’s actions in 2025 have been constantly shifting in response to economic reports in recent weeks. When concerns about inflation are eased, the likelihood of interest rate cuts grows, resulting in lower Treasury yields and higher stock prices. Conversely, if inflation concerns persist due to a strong economy or proposed policies, Treasury yields climb, and stocks tend to falter.On this particular day, Treasury yields remained relatively stable. The yield on the 10-year Treasury dipped to 4.62% from 4.66% the previous day, fluctuating marginally throughout the morning but still notably below the 4.79% rate earlier in the week. The two-year Treasury yield, which closely mirrors expectations of the Fed’s future moves, decreased to 4.24% from 4.27% the day before, compared to 4.37% just two days prior.Although Treasury yields are higher than they were last fall, this upward trend can exert downward pressure on stock prices unless companies can generate improved profits to offset the impact.On Wall Street, Morgan Stanley surged 2.4% after announcing stronger earnings for the recent quarter than projected by analysts. CEO Ted Pick attributed this performance to improved investment banking during the quarter, alongside growth in total client assets to $7.9 trillion across its wealth and investment management divisions. Similarly, a host of other banks reported better-than-expected profits the previous day, including Citigroup, Goldman Sachs, and Wells Fargo.However, Bank of America, despite surpassing expectations in its profit report on Thursday, saw