US Stocks Mixed Ahead of Amazon Earnings amid Tariff Concerns and Earnings Season
US stocks traded mixed on Thursday as investors awaited Amazon's quarterly results and digested earnings season updates. The Dow Jones Industrial Average (^DJI) declined 0.3%, while the S&P 500 (^GSPC) gained 0.3%, and the tech-heavy Nasdaq Composite (^IXIC) advanced 0.5%.
The market's sentiment was influenced by several factors:
* Tariff jitters: Concerns about the potential impact of tariffs on imported goods eased somewhat.
* Earnings season: Investors closely monitored corporate earnings for any signs of slowing demand or economic headwinds.
* Tech and chip earnings: Scrutiny was directed towards tech and chip-related results to gauge the strength of artificial intelligence (AI) demand.
Key Highlights:
* Amazon's Earnings Forecast Disappoints: Amazon's (AMZN) stock fell after it provided worse-than-anticipated first-quarter sales guidance, despite reporting better-than-expected quarterly revenue and earnings.
* Nvidia Shares Rally: Nvidia (NVDA) shares rose over 3% on the back of strong stock performance in recent sessions.
* AI Mentions Reach Highs: A Goldman Sachs report highlighted that the share of S&P 500 companies mentioning AI during this quarter's earnings calls reached a new high of 50%, indicating growing hype around AI adoption.
* Ford's Muted Guidance: Ford (F) shares dropped over 7% after the automaker issued muted full-year guidance, citing potential headwinds from market factors and tariffs.
* Skyworks' Stock Plummets: Apple (AAPL) supplier Skyworks Solutions (SWKS) saw its stock plunge over 23% as it faces potential loss of business to a competitor.
* Tariff Threat to Lumber: President Donald Trump's planned tariff on lumber imports could lead to higher lumber prices, impacting homebuilders' margins.
* Weekly Jobless Claims Rise: Initial jobless claims for the week ending January 25 increased to 1.89 million, the highest in nearly three years, suggesting challenges in the labor market.
* Dow Drops on Honeywell, Salesforce: The Dow Jones Industrial Average (^DJI) was weighed down by declines in shares of Honeywell (HON) and Salesforce (CRM). Honeywell announced plans to split into three separate companies, while Salesforce experienced a management shake-up.
* Arm and Qualcomm Earnings Disappoint: Arm Holdings (ARM) and Qualcomm (QCOM) stocks fell on disappointing quarterly results, indicating that AI has not yet spurred a significant surge in demand for their chips.
* Tesla Stock Extends Losses: Tesla (TSLA) shares continued their decline, impacted by concerns over CEO Elon Musk's involvement in politics and the potential impact of tariffs.