Mixed Earnings and Jobs Data Weigh on Stock Market

Key Points:

* Stocks fluctuated between gains and losses amidst mixed earnings and upcoming jobs data.
* Cloud computing giants' disappointing results raise concerns about Amazon Web Services.
* Treasury Secretary Bessent expects lower 10-year bond yields under the Trump administration.
* Unemployment claims increased slightly, but labor productivity remained strong.
* Options market anticipates a 0.9% S&P 500 move after Friday's jobs report.
* January employment report revisions are expected to be less severe than initially estimated.
* Retail investor enthusiasm remains high despite market volatility.
* Key corporate developments include cautious guidance from Arm Holdings, positive results from Eli Lilly, and a planned split for Honeywell International.

Market Dynamics:

The S&P 500 declined 0.2%, the Nasdaq 100 lost 0.2%, and the Dow Jones Industrial Average fell 0.7%. The Bloomberg Dollar Spot Index remained steady, while the British pound depreciated by 0.5%. The 10-year Treasury yield advanced slightly to 4.43%.

Company Highlights:

* Arm Holdings issued a cautious revenue forecast, reflecting concerns about slowing AI spending.
* Eli Lilly's full-year earnings projections met analysts' expectations, despite inventory issues with new blockbuster drugs.
* Honeywell International plans to split into separate publicly traded companies, following pressure from an activist investor.
* Bristol Myers Squibb's 2025 sales and profit projections fell short of expectations, indicating a slower recovery from declining drug sales.
* Roblox Corp. reported lower-than-expected daily active users for Q4.
* L'Oreal SA's fourth-quarter sales missed estimates due to weak demand in China.
* Tapestry Inc. raised its annual guidance on strong sales at its Coach brand.
* Under Armour Inc. raised its profit guidance, signaling a successful turnaround strategy.
* Yum! Brands Inc.'s sales exceeded expectations, driven by Taco Bell's growth.
* Hershey Co. reported higher-than-expected fourth-quarter sales.
* MetLife Inc. expects a significant profit increase from private equity and real estate investments in 2025.
* Bausch Health Companies Inc. faced a setback in its efforts to separate its Bausch + Lomb eye-care business.

Upcoming Events:

* US nonfarm payrolls, unemployment, University of Michigan consumer sentiment: Friday
* Speeches by Fed's Michelle Bowman and Adriana Kugler: Friday