US Stocks Mixed Ahead of Amazon's Earnings Report
US stocks exhibited mixed performance on Thursday amidst anticipation for Amazon's quarterly results. Investors assessed the ongoing earnings season while monitoring President Donald Trump's policy overhaul.
The Dow Jones Industrial Average (^DJI) declined by 0.3%, while the S&P 500 (^GSPC) gained around 0.3%. The Nasdaq Composite (^IXIC) rose by 0.3% after two consecutive days of gains.
The market's initial concerns over tariffs eased, but investors remain cautious, examining company earnings reports for any warnings. Tech and chip-related results are particularly scrutinized for insights into the demand for artificial intelligence (AI).
Amazon's quarterly report, expected after the closing bell, is highly anticipated following Alphabet's disappointing cloud sales performance. The results will shed light on Big Tech's continued investment in AI after weak results from chipmakers Arm and Qualcomm.
Ford's (F) shares fell despite exceeding quarterly earnings estimates, as the company provided subdued full-year guidance, citing tariffs as a challenge. Peloton (PTON) stock surged after the fitness equipment maker reported better-than-expected sales, aided by its partnership with Costco.
ConocoPhillips (COP) surpassed quarterly profit estimates, driven by higher oil and gas production. Treasury Secretary Scott Bessent eased pressure on the Federal Reserve by indicating that Trump aims to lower 10-year Treasury yields to facilitate borrowing rather than pushing for lower interest rates.
In economic news, jobless claims rose to 219,000 last week, exceeding estimates of 213,000. Investors analyze this data for clues regarding Fed policy decisions amid inflation concerns.
Key Stock Movements:
* Roblox (RBLX): Shares fell 13% after missing key metrics in its quarterly report.
* Tesla (TSLA): Stock extended losses by over 2%, pressured by muted guidance from Ford and concerns over CEO Elon Musk's political involvement.
* Peloton (PTON): Surged 23% on strong quarterly sales fueled by its Costco partnership.
* Qualcomm (QCOM): Declined 5% despite beating expectations in quarterly earnings due to disappointing licensing business guidance.
* Honeywell (HON): Fell 4% after announcing a split into three separate companies: Honeywell Automation, Honeywell Aerospace, and Advanced Materials.
International Markets:
* European stocks advanced on Thursday, with the FTSE 100 index rising 1.6% after the Bank of England cut interest rates.
* The pan-European Stoxx 600 index gained 0.7%, nearing a record closing high.
Economic Data and Earnings:
* Economic data: Challenger job cuts (year-over-year, January), initial jobless claims (week ending Feb. 1)
* Earnings: Amazon (AMZN), Eli Lilly (LLY), Affirm (AFRM), e.lf. Beauty (ELF), Bristol Myers Squibb (BMY), ConocoPhillips (COP), Hershey (HSY), Peloton (PTON), Pinterest (PINS), Phillip Morris International (PM), Roblox (RBLX), Tapestry (TPR), Yum! Brands (YUM)