US Stocks Mixed as Investors Await Trump Remarks from Davos
Market Recap
U.S. stocks closed mixed on Thursday as investors monitored comments from President Donald Trump at the World Economic Forum in Davos, Switzerland.
* The S&P 500 (^GSPC) edged up 0.1%, closing just below its all-time high.
* The Dow Jones Industrial Average (^DJI) gained 0.6%, nearing a record.
* The Nasdaq Composite (^IXIC) slipped around 0.2%, weighed down by technology stocks.
Trump's Davos Speech
Investors focused on Trump's remote address to the WEF, where he:
* Demanded an immediate cut in interest rates.
* Requested OPEC to lower the price of oil.
* Warned companies that if they do not manufacture their products in America, they will be subject to tariffs.
Market Drivers
* Tech Stock Struggle: Shares of Nvidia and other tech companies declined after SK Hynix, a supplier to Nvidia, expressed uncertainty about chip demand in 2025.
* Positive Earnings Outlook: Netflix's strong earnings report raised expectations for upcoming tech earnings.
* Jobless Claims: Initial jobless claims for the week ended Jan. 18 increased by 6,000 to 223,000.
* Trump's Tariff Policy: Investors continue to digest Trump's trade policy, which has raised concerns about inflation and stock market volatility.
Sector Performance
* Technology: Nvidia, Apple, and Google parent Alphabet led the decline in tech stocks.
* Energy: Oil prices fell after Trump's request to OPEC to lower the price of crude.
* Industrials: Boeing and other industrial companies gained as Trump emphasized American manufacturing.
Notable Earnings Reports
* American Airlines (AAL): Forecast a surprising first-quarter loss, sending shares tumbling.
* Electronic Arts (EA): Cut its bookings outlook, leading to a drop in stock value.
* GE Aerospace: Beat earnings estimates and announced a $7 billion stock buyback plan.