US Stock Market Tremors amidst Earnings and Trump's Stance on China Tariffs
US stocks grappled for momentum on Friday as investors assessed the latest earnings reports and weighed President Trump's apparent softening of rhetoric on tariffs against China.
Market Performance:
* Dow Jones Industrial Average (DJI) dipped 0.1%
* S&P 500 (GSPC) slipped below flatline after reaching an initial record high of 2025 on Thursday
* Nasdaq Composite (IXIC) declined 0.1%
Trump's Remarks and Impact:
President Trump's call for lower US interest rates, oil prices, and taxes sparked investor optimism. However, Wall Street remained skeptical about his ability to fulfill these promises. Trump's recent statement that he would "rather not" impose tariffs on China eased concerns of a potential trade war, giving the market temporary relief.
Earnings Season:
The current earnings season has shown strong results, providing a boost to market sentiment. However, the upcoming reports from major tech companies next week will be a significant test.
Company News:
* Boeing (BA) shares fell 1% after announcing a $3.5 billion quarterly loss due to strikes and layoffs.
* Novo Nordisk (NVO) surged after positive results for its latest weight-loss product, elevating the company to Europe's most valuable publicly listed entity.
* Twilio (TWLO) soared 20% as analysts touted its artificial intelligence potential and projected strong revenue growth.
* American Express (AXP) declined 2% despite solid quarterly results, disappointing some investors with a less impressive revenue growth forecast.
Economic Indicators:
* Preliminary readings indicate a seven-month high in US manufacturing activity based on data released on Friday.
* Consumer sentiment declined for the first time in six months in January, impacted by concerns about a weaker labor market and potential tariff-induced price increases.
Currency:
* The US dollar weakened as Trump softened his stance on tariffs, making other currencies more attractive.