Amazon and TechEarnings Drive US Stocks Amid Economic Data and Policy Shifts
US markets displayed mixed results on Thursday in anticipation of Amazon's quarterly report and amidst the ongoing earnings season. Investors scrutinized corporate financials for potential warnings while monitoring the rapidly evolving policy landscape under President Donald Trump.
Dow Jones Industrial Average:
The Dow Jones Industrial Average (^DJI) declined by 0.3%. Honeywell (HON) shares fell after the conglomerate announced plans to split into three companies. Salesforce (CRM) stock also slipped following management changes.
S&P 500:
The S&P 500 (^GSPC) rose by more than 0.3%. NVIDIA (NVDA) shares surged over 3% as technology stocks gained. The tech-heavy Nasdaq Composite (^IXIC) popped by 0.5%.
Tariffs and Currency Yields:
Concerns over tariffs may have eased, but investors remain focused on potential company warnings in upcoming earnings reports. Treasury Secretary Scott Bessent indicated that Trump seeks to reduce 10-year Treasury yields to facilitate borrowing rather than pushing for lower interest rates.
Amazon's Forecast Disappoints:
Amazon (AMZN) reported better-than-anticipated fourth-quarter results but provided below-par guidance for the first quarter. Shares fell on the news.
AI Demand and Earnings:
Tech-related results are drawing scrutiny for signs of AI demand. Goldman Sachs noted a rise in companies mentioning AI during earnings calls, with a shift towards companies using AI software to boost revenues.
Ford's Cautious Outlook:
Ford (F) reported a quarterly earnings and revenue beat but issued muted full-year guidance. CFO Sherry House warned that a 25% tariff on imports "would have a major impact on our industry." Ford stock dropped more than 7%.
Apple Supplier Skyworks Plummets:
Apple supplier Skyworks Solutions (SWKS) saw its stock drop over 23% as it announced losing business to a competitor.
Lumber Tariff Impact:
Trump's planned tariffs on lumber could increase prices, affecting homebuilders' margins. Builders are exploring diversified supply sources to mitigate potential price pressures.
Labor Market Challenges:
Jobless claims jumped slightly, indicating continued challenges for workers in finding new employment. The Federal Reserve acknowledges the difficulties for unemployed individuals.
Mixed Earnings:
Arm Holdings (ARM) and Qualcomm (QCOM) stocks fell after their earnings reports failed to reflect a significant surge in AI-driven demand. Eli Lilly (LLY) reported mixed results, beating Wall Street estimates but missing on GLP-1 sales. Peloton (PTON) soared 23% on better-than-expected quarterly sales.
Europe Stocks Higher:
European and UK stocks rose on Thursday, aided by earnings and a rate cut by the Bank of England. The pan-European Stoxx 600 benchmark advanced 0.7%.
Global Economic Data:
* Challenger jobs cuts (year-over-year, January)
* Initial jobless claims (week ending Feb. 1)
* Saudi Arabia announces steep rise in March oil prices