US Stocks Mixed Amid Amazon Earnings, Fed Policy
New York, February 6, 2025 (Business Wire) - US stocks were mixed on Thursday, as investors weighed quarterly results from Amazon (AMZN) and awaited President Donald Trump's policy announcements.
The Dow Jones Industrial Average (^DJI) fell 0.3%, while the S&P 500 (^GSPC) rose over 0.3%. The technology-heavy Nasdaq Composite (^IXIC) gained 0.5%, extending its winning streak to three days.
* Amazon Earnings: Amazon's fourth-quarter results beat expectations on both revenue and earnings per share, but the company provided disappointing guidance for the first quarter. Shares of Amazon declined in after-hours trading.
* Federal Reserve: Treasury Secretary Scott Bessent eased pressure on the Federal Reserve by stating that President Trump aims to reduce 10-year Treasury yields to lower borrowing costs, rather than push for lower interest rates.
* Jobless Claims: Initial jobless claims rose to 219,000 last week, slightly exceeding expectations. This reading comes ahead of Friday's monthly jobs report, which will provide further insights into the labor market amid concerns about inflation.
* Chip and Tech Earnings: Shares of Nvidia (NVDA) surged 3% following positive earnings, while Arm Holdings (ARM) and Qualcomm (QCOM) faced declines due to disappointing results. Investors are closely monitoring AI-related earnings for indications of demand.
* Tariff Jitters: Concerns over tariffs, which had rattled markets earlier this week, appeared to subside. However, investors remain cautious as the Trump administration considers additional measures.
* Ford Outlook: Ford (F) shares dropped over 7% after the company issued muted full-year guidance, citing headwinds related to market factors such as pricing.
* Conglomerate Split: Honeywell (HON) announced plans to split into three separate companies, focused on automation, aerospace, and advanced materials.
* AI Mentions: Goldman Sachs reported that the share of S&P 500 companies mentioning AI during earnings calls reached a new high of 50%. Companies leveraging AI software are expected to benefit from this trend.
* Workforce Challenges: The number of Americans filing for weekly unemployment claims remains elevated, indicating increased difficulty in finding new jobs. Experts suggest that the labor market is becoming more challenging for the unemployed and those seeking work.
* European Markets: European stocks advanced, with the FTSE 100 surging after the Bank of England cut interest rates. The Stoxx 600 also climbed, tracking its US counterparts.