US Stocks Fluctuate Amid Trump's Davos Remarks and Economic Uncertainty
US stock markets experienced mixed results on Thursday, with the S&P 500 and Dow Jones Industrial Average trading higher, while the Nasdaq Composite declined.
S&P 500 and Dow Jones Gain
The S&P 500 (^GSPC) rose 0.53%, inching closer to its record high, while the Dow Jones Industrial Average (^DJI) climbed 0.92%. The gains were driven by the industrial sector.
Nasdaq Composite Loses
The Nasdaq Composite (^IXIC) fell 0.22%, weighed down by the tech sector. Nvidia (NVDA) declined after its supplier raised concerns about chip demand.
Trump's Davos Speech
Investors paid close attention to President Donald Trump's remote speech at the World Economic Forum in Davos, Switzerland. Trump called for lower interest rates and a reduction in oil prices by OPEC. He also warned companies to face tariffs if they did not manufacture in the United States.
Economic Data and Earnings
Initial jobless claims rose to 223,000 for the week ending January 18th, exceeding expectations. US stock markets are awaiting earnings reports from companies such as American Airlines (AAL), General Electric (GE), and Texas Instruments (TXN).
Trending Tickers
* Electronic Arts (EA): Stock fell 15% after reporting a decline in quarterly bookings.
* General Electric (GE): Stock jumped nearly 7% on strong earnings and an optimistic outlook.
* American Airlines (AAL): Stock tumbled 8% after forecasting a surprise loss for the first quarter.
Homebuyer Confidence Declines
A record number of home purchase agreements were canceled in December, as high mortgage rates and housing costs eroded buyer confidence.
Analyst Insights
* Jesse Landin (Redfin): "Homebuyers are having trouble committing because housing costs remain expensive."
* Elijah de la Campa (Redfin): "Buyer appetite will likely slow further in January due to wildfires and winter storms."