US close: S&P 500 hits new high after Trump speech at Davos

(Sharecast News) - US stocks rose on Thursday as investors digested a host of blue chip earnings and comments from Donald Trump as he pledged his "America First" strategy to the world at Davos.

A number of blue chips reported quarterly results ahead of the opening bell, including American Airlines, GE Aerospace, Freeport-McMoran and McCormick & Company. Meanwhile, heavyweights Intuitive Surgical, Texas Instruments, CSX Corporation and East West Bancorp were all due to report after markets close.

The S&P 500 rose 0.5% to a new high of 6,118.71, surpassing an earlier closing peak of 6,090.27 reached on 6 December. Meanwhile, the Nasdaq gained 0.2% and the Dow rose 0.9%, with both indices nearing their own record highs reached last month.

With very little economic data out across the globe, the market's focus was (again) firmly on Donald Trump as he addressed the World Economic Forum in Davos, reinforcing his protectionist stance on manufacturing and trade.

"My message to every business in the world is very simple: Come make your product in America and we will give you among the lowest taxes of any nation on Earth," Trump said in a video address. "But if you don't make your product in America, which is your prerogative, then, very simply, you will have to pay a tariff."

"His comments that companies should make products in the US if they don't want to face tariffs won't come as much of a surprise to the business leaders listening, nor will his stated desire to cut taxes and lower inflation, though plenty will wonder how those two things might be achieved at the same time," said AJ Bell's head of financial analysis Danni Hewson.

In economic news, claims for unemployment benefits in the US rose 6,000 to a six-week high of 223,000, with new claims in California at a two-year high as wildfires spread across the north-west LA area. The consensus forecast was 220,000. Claims in California alone rose nearly 6,744 to 60,988, even as seasonal factors anticipated a sharp decline.

Nationwide continuing jobless claims - the number of people continuing to receive benefits - jumped 46,000 to 1.899m, their highest level since November 2021 and well ahead of the 1.860m estimate.

Market movers

Shares in American Airlines dropped 9% despite the news of record quarterly and annual sales, as the carrier's outlook for the first quarter disappointed investors. The airline expects to report an adjusted loss per share of 20 to 40cents for the fourth quarter, with the market having pencilled in a figure closer to a 4cents loss.

General Electric shares jumped 7% after GE Aerospace reported a strong set of results for the fourth quarter, exceeding analyst expectations. Net income surged 49% to $1.9bn, driven by a 14% increase in revenue to $10.8bn. The company also announced a $7bn share buyback programme for 2025, and a 30% increase in its quarterly dividend.

Freeport-McMoran finished slightly in the red after the mining group said that production in the fourth quarter declined and costs would be higher than anticipated this year.

Meanwhile, McCormick & Company gained after the food manufacturer posted a less-than-expected decline in fourth-quarter profits, reassuring investors despite a under-consensus forecast for 2025.

Dow Jones - Risers

Caterpillar Inc. (CAT) $406.40 2.21%

Boeing Co. (BA) $178.50 2.12%

Walt Disney Co. (DIS) $111.04 2.05%

Unitedhealth Group Inc. (UNH) $529.77 1.93%

Amgen Inc. (AMGN) $277.88 1.62%

Dow Chemical Co. (DOW) $41.47 1.59%

Visa Inc. (V) $328.21 1.44%

International Business Machines Corporation (CDI) (IBM) $226.04 1.25%

JP Morgan Chase & Co. (JPM) $265.95 1.18%

American Express Co. (AXP) $325.87 1.12%

Dow Jones - Fallers

Travelers Company Inc. (TRV) $241.51 -2.11%

Intel Corp. (INTC) $21.57 -1.33%

Coca-Cola Co. (KO) $61.53 -0.40%

Chevron Corp. (CVX) $156.01 -0.26%

Apple Inc. (AAPL) $223.66 -0.08%

S&P 500 - Risers

TripAdvisor Inc. (TRIP) $17.93 13.91%

General Electric Co. (GE) $200.80 6.60%

Union Pacific Corp. (UNP) $248.05 5.20%

Carmax Inc. (KMX) $81.99 4.75%

Abbott Laboratories (ABT) $123.22 4.62%

Marathon Petroleum Corporation (MPC) $154.31 4.54%

Booking Holdings Inc. (BKNG) $4,818.14 4.31%

Valero Energy Corp. (VLO) $140.71 4.17%

Qorvo, Inc. (QRVO) $90.57 4.00%

HF Sinclair Corporation (DINO) $36.84 3.95%

S&P 500 - Fallers

Electronic Arts Inc. (EA) $118.58 -16.70%

American Airlines Group (AAL) $17.03 -8.74%

United Airlines Holdings Inc (UAL) $103.00 -4.60%

Micron Technology Inc. (MU) $104.84 -4.02%

Illumina Inc. (ILMN) $134.76 -3.99%

J.B. Hunt Transport Services Inc. (JBHT) $170.28 -2.64%

Nektar Therapeutics (NKTR) $0.89 -2.55%

Applied Materials Inc. (AMAT) $190.70 -2.46%

Lam Research Corp. (LRCX) $81.23 -2.43%

Monster Beverage Corp (MNST) $48.11 -2.24%

Nasdaq 100 - Risers

Booking Holdings Inc. (BKNG) $4,818.14 4.31%

Netflix Inc. (NFLX) $984.86 3.24%

Qurate Retail Inc. (QRTEA) $0.38 2.99%

Vertex Pharmaceuticals Inc. (VRTX) $439.71 2.74%

QUALCOMM Inc. (QCOM) $174.36 2.42%

Regeneron Pharmaceuticals Inc. (REGN) $694.64 2.15%

Meta Platforms Inc. (META) $636.45 2.08%

Liberty Global plc Series A (LBTYA) $11.88 2.06%

Charter Communications Inc. (CHTR) $359.96 2.03%

Analog Devices Inc. (ADI) $228.35 1.91%

Nasdaq 100 - Fallers

Electronic Arts Inc. (EA) $118.58 -16.70%

American Airlines Group (AAL) $17.03 -8.74%

Micron Technology Inc. (MU) $104.84 -4.02%

Illumina Inc. (ILMN) $134.76 -3.99%

Asml Holdings N.V. (ASML) $746.24 -2.67%

J.B. Hunt Transport Services Inc. (JBHT) $170.28 -2.64%

Applied Materials Inc. (AMAT) $190.70 -2.46%

Lam Research Corp. (LRCX) $81.23 -2.43%

Monster Beverage Corp (MNST) $48.11 -2.24%

Take-Two Interactive Software Inc. (TTWO) $183.82 -2.22%