Amazon Earnings Disappoint, Stock Slides
Market Summary:
US stocks displayed mixed performance on Thursday amid anticipation of Amazon's quarterly results. Investors assessed ongoing earnings season and monitored President Trump's evolving policy overhaul.
The Dow Jones Industrial Average (DJI) declined 0.3%, while the S&P 500 (GSPC) gained over 0.3%. The Nasdaq Composite (IXIC) rose 0.5%, extending two consecutive days of growth.
Amazon's Quarterly Report:
Investors eagerly awaited Amazon's (AMZN) quarterly report due after the closing bell, following a sales shortfall from Alphabet's (GOOG) cloud computing division. Amazon's guidance for the first quarter fell short of expectations, leading to a decline in its share price.
Other Corporate News:
Salesforce (CRM) shares dropped after the software giant announced management changes.
Honeywell (HON) shares fell following the conglomerate's confirmation that it would split into three companies.
Treasury Secretary Scott Bessent eased pressure on the Federal Reserve by indicating that Trump favors reducing 10-year Treasury yields to lower borrowing costs rather than pushing for lower interest rates.
Economic Indicators:
Jobless claims rose to 219,000 last week, slightly exceeding estimates of 213,000. The data comes ahead of Friday's monthly jobs report, which investors will scrutinize for clues regarding Fed decision-making amidst inflation concerns.
Artificial Intelligence (AI) Trends:
Goldman Sachs noted that AI mentions in earnings calls reached record highs during the current quarter, with companies increasingly focusing on leveraging AI to boost revenues.
Tariff Considerations:
Ford (F) shares declined over 7% after issuing muted full-year guidance, including potential impact from tariffs on imports.
Other Top Stories:
* Skyworks Solutions (SWKS) stock plunged as the company lost business to a competitor in Apple's iPhone supply chain.
* A proposed tariff on Canadian lumber could increase homebuilders' costs and reduce housing starts.
* Job seekers are facing increased challenges in finding work, as evidenced by elevated levels of continuing unemployment insurance claims.