US close: Stocks mixed after earnings barrage

(Sharecast News) - US stock markets were searching for direction on Thursday following a barrage of blue chip corporate earnings that received a mixed reaction from investors, while labour-market data was in firm focus.

The S&P 500 and Nasdaq gained 0.4% and 0.5% respectively - rising for the third straight session - but the Dow declined 0.3%.

"US stocks have run into some turbulence after their rebound from Monday's lows, weighed down by some gloomier earnings and the impending payrolls report," said Chris Beauchamp, chief market analyst at IG.

"Investors have been able to put tariff worries aside after Monday's rout, but they are sure to rear their head again, and the damage to stocks next time might be more long-lasting."

Risk appetite was also being held back ahead of Friday's all-important jobs report, with analysts expecting non-farm payrolls to rise by 169,000 in January, down from the bumper level of 256,000 announced for December.

"Payrolls are set to lose momentum at the start of 2025, with temporary shocks helping to keep the headline gain under the 200k mark," said analyst at TD Securities.

On the macro front, initial jobless claims rose by 11,000 to 219,000 last week, above market expectations of 213,000. Continuing claims rose by 26,000 to 1.88m, also coming in ahead of expectations of 1.87m. Meanwhile, the four-week-moving average, which aims to strip out week-to-week volatility, rose by 4,000 to 216,750 on the back of sharp increases in New York and California.

In other news, a preliminary reading of fourth-quarter non-farm productivity showed an increase of 1.2%, according to the Bureau of Labor Statistics, short of expectations for a 1.4% rise and following a revised 2.3% improvement in the third quarter. Output grew 2.3%, while hours worked rose 1.0%. On an annualised basis, labour productivity was up 1.6%.

Market movers

Chip stocks were under pressure with Qualcomm and Arm both heading south as their latest sets of quarterly figures underwhelmed investors. Both companies beat expectations with their results, though analysts highlighted growth headwinds for Qualcomm while Arm cut the top end of its sales guidance. Smaller peer Skyworks Solutions also plummeted by more than fifth after its figures.

Ford Motor was also a heavy faller on the back of gloomy guidance for 2025. The auto giant surpassed forecasts with its fourth-quarter results, but said that a subdued outlook for this year "presumes headwinds related to market factors".

Fast food business Yum Brands jumped after quarterly earnings and revenue beat estimates thanks to strong sales at KFC's international locations and Taco Bell.

Drugmaker Eli Lilly posted a surge in fourth-quarter revenues, fuelled by strong demand for its blockbuster diabetes and weight-loss drugs. However, shares in fellow pharmaceutical giant Bristol Myers Squibb headed south as its solid fourth-quarter revenue performance was offset by FY25 guidance that fell short of Wall Street expectations.

Peloton's share price raced ahead after the fitness equipment maker impressed with a strong set of second-quarter sales figures an upgrade to full-year forecasts.

Honeywell's plans to break itself up were met with a negative reaction from the market. Following pressure from activist investor Elliott Investment Management, the industrial conglomerate said it would separate its aerospace division from its automation business, while simultaneously proceeding with a previously announced spin-off of its advanced materials unit.

Strong sales of vapes and nicotine pouches helped tobacco giant Philip Morris International beat forecasts with its fourth-quarter results, as the manufacturer posted full-year guidance ahead of consensus, causing the stock to light up.

Also in demand was fashion brand Ralph Lauren after lifting annual revenue guidance following better-than-expected third-quarter earnings.

Dow Jones - Risers

JP Morgan Chase & Co. (JPM) $276.84 2.37%

Dow Chemical Co. (DOW) $38.79 2.23%

Intel Corp. (INTC) $19.38 2.13%

Goldman Sachs Group Inc. (GS) $657.81 1.91%

McDonald's Corp. (MCD) $294.35 1.91%

Caterpillar Inc. (CAT) $365.60 1.88%

Boeing Co. (BA) $184.83 1.64%

Walgreens Boots Alliance, Inc. (WBA) $10.05 1.62%

Apple Inc. (AAPL) $233.22 1.56%

Walt Disney Co. (DIS) $112.21 1.51%

Dow Jones - Fallers

Salesforce.Com Inc. (CRM) $330.52 -5.00%

International Business Machines Corporation (CDI) (IBM) $253.30 -3.80%

Nike Inc. (NKE) $71.75 -3.77%

Merck & Co. Inc. (MRK) $87.98 -1.88%

Unitedhealth Group Inc. (UNH) $529.67 -1.88%

Johnson & Johnson (JNJ) $153.45 -0.80%

Chevron Corp. (CVX) $151.89 -0.72%

Visa Inc. (V) $347.28 -0.62%

Verizon Communications Inc. (VZ) $39.94 -0.49%

Amgen Inc. (AMGN) $297.78 -0.28%

S&P 500 - Risers

Tapestry Inc. (TPR) $82.05 11.82%

Philip Morris International Inc. (PM) $145.42 11.02%

Yum! Brands Inc. (YUM) $143.90 9.64%

Ralph Lauren Corp (RL) $272.03 9.25%

Lincoln National Corp. (LNC) $35.75 5.86%

Nvidia Corp. (NVDA) $128.67 5.48%

Cognizant Technology Solutions Corp. (CTSH) $87.09 5.09%

Lam Research Corp. (LRCX) $82.83 4.83%

Mondelez International Inc. (MDLZ) $57.83 4.75%

Hilton Inc (HLT) $269.84 4.65%

S&P 500 - Fallers

Skyworks Solutions Inc. (SWKS) $65.60 -23.92%

Helmerich & Payne Inc. (HP) $27.83 -16.13%

Equifax Inc. (EFX) $246.84 -8.66%

Hologic Inc. (HOLX) $65.45 -8.51%

Under Armour Inc. Class A (UAA) $7.61 -7.68%

Ford Motor Co. (F) $9.27 -7.30%

Becton, Dickinson & Company (BDX) $227.45 -7.19%

CF Industries Holdings Inc. (CF) $84.04 -6.29%

National Oilwell Varco Inc. (NOV) $15.45 -5.93%

Zimmer Biomet Holdings Inc (ZBH) $102.81 -5.02%

Nasdaq 100 - Risers

Nvidia Corp. (NVDA) $128.67 5.48%

Cognizant Technology Solutions Corp. (CTSH) $87.09 5.09%

Lam Research Corp. (LRCX) $82.83 4.83%

Mondelez International Inc. (MDLZ) $57.83 4.75%

Marriott International - Class A (MAR) $302.95 4.22%

Workday, Inc. (WDAY) $277.82 4.02%

Sirius XM Holdings Inc (SIRI) $25.91 4.01%

Applied Materials Inc. (AMAT) $182.80 3.86%

Micron Technology Inc. (MU) $94.51 3.78%

Charter Communications Inc. (CHTR) $353.41 3.74%

Nasdaq 100 - Fallers

Skyworks Solutions Inc. (SWKS) $65.60 -23.92%

Hologic Inc. (HOLX) $65.45 -8.51%

Tesla Inc (TSLA) $374.32 -2.73%

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $401.60 -2.23%

Illumina Inc. (ILMN) $122.80 -2.07%

Dollar Tree Inc (DLTR) $74.52 -1.95%

Take-Two Interactive Software Inc. (TTWO) $183.08 -1.60%

Wynn Resorts Ltd. (WYNN) $80.65 -1.41%

Adobe Systems Inc. (ADBE) $435.40 -1.39%

Trip.com Group Limited (TCOM) $68.53 -1.39%