MARKET SNAPSHOT

U.S. stocks ended mixed, with the Dow industrials lower, as investors digested the latest round of corporate earnings. Treasury yields recovered slightly after higher-than-expected jobless-claims data. The dollar was little changed. Oil futures settled lower amid rising U.S. supplies and tariff disputes. Gold prices slipped off their recent highs.

MARKET WRAPS

EQUITIES

Another batch of strong corporate earnings reports pushed the S&P 500 and Nasdaq stock indexes toward record highs while plans to break up one of America's last big industrial conglomerates pulled down the Dow.

The Dow Jones Industrial Average shed 0.3%. The blue-chip index was weighed down by Honeywell, which fell 5.6% after it said it would split into three independent companies focused on aerospace, automation and advanced materials.

The Nasdaq Composite increased 0.5% and the S&P 500 rose 0.4%.

The S&P 500's biggest gainers suggested that American consumers are confident in their employment and continue to spend at a healthy clip.

Earlier Thursday, Chinese shares ended higher. Investors were focusing on developments regarding tariffs.

The Shanghai Composite Index climbed 1.3%. The Shenzhen Composite Index added 2.3% and the ChiNext Price Index gained 2.8%. Hong Kong's Hang Seng Index closed 1.4% higher.

Japan's Nikkei Stock Average rose 0.6% amid receding concerns of trade friction between the U.S. and its trading partners. Brokerage and electronics stocks led the gains.

Stocks in Australia gained, as the S&P/ASX 200 rose 1.2%, the second consecutive day of increases.

Markets in New Zealand were closed for National Day.

COMMODITIES

U.S. and global oil futures declined as a hefty rise in last week's U.S. supplies and uncertainty surrounding tariff disputes helped to weaken the outlook for crude demand, prompting prices to settle at their lowest levels of the year.

Prices found little support from an increase in Saudi Arabia's crude prices for Asian buyers, which implied strength in crude demand from the region.

West Texas Intermediate crude for March delivery fell 0.6% to settle at $70.61 a barrel on the New York Mercantile Exchange. April Brent crude lost 0.4% to end at $74.29 a barrel on ICE Futures Europe.

After consecutive days of record closes, front-month gold futures fell back-slipping 0.5% to $2,856 a troy ounce. It's still the second-highest close in the front-month contract's history.

Despite Thursday's respite, analysts think gold will move even higher. "The uncertainty over trade and tariffs will continue to buoy gold prices," said ING Economics.

TODAY'S TOP HEADLINES

Year-End Gains in Productivity Weaken. What It Means for Growth.

Growth in workers' productivity diminished at the end of 2024, according to the latest data released Thursday, potentially offering an early sign of slower economic momentum this year.

Labor productivity grew at a rate of 1.2% in the fourth quarter of 2024, according to a preliminary estimate released Thursday by the Bureau of Labor Statistics. That is largely in line with estimates from economists surveyed by FactSet who forecast a rise of just 1.1%. Growth was 2.3% in the third quarter, revised data showed.

Annual average productivity increased 2.3% last year, the bureau reported Thursday. That compares with the revised growth rate of 1.6% logged in 2023.

Bank of England Cuts Rates, Warns of Tariff Impact

The Bank of England cut its key interest rate Thursday, a response to a troubling mix of stuttering economic growth, stubborn inflation and President Trump's tariff threats.

The BOE cut rates, by a quarter percentage point to 4.5%, for the third time since August and lowered its forecasts for U.K. economic growth, which is already trailing far behind the U.S. Britain faces a slew of uncertainties, including the possibility that trade conflicts initiated by the U.S. will chill global growth and demand for U.K. exports-even if the country escapes direct tariffs itself.

China's Firms Are Bleeding Cash-and Vulnerable to Trump's Trade War

Xinte Energy, a Chinese green-energy firm, says on its website that it is "delivering light and warmth to every corner of the world." It is also losing tons of money.

The maker of polysilicon, a building block for solar panels, recently told shareholders it expects to report losses of around 4 billion yuan, equivalent to more than $500 million, for 2024. Intense pressure by the government to build up key industries has led to fierce competition and price wars while demand has stalled, hitting the company's bottom line.

Unfortunately for China, it isn't just the solar power industry. Companies across the country are bleeding cash as they struggle with overcapacity and weak spending in a slumping economy.

Jobless claims rise slightly, but no sign of trouble brewing in labor market

The number of people who applied for unemployment benefits in early February rose slightly but remained at very low levels in a sign the labor market is still quite healthy.

New jobless claims, a proxy for layoffs, increased by 11,000 to 219,000 in the seven days that ended Feb. 1, the government said. Anything below 250,000 is considered an exceptionally good reading.

Unemployment filings tend to rise steadily ahead of a recession and are one of the best bellwethers of the economy. Yet new jobless claims have remained remarkably low for several years and show few signs of trouble.

Amazon's stock drops as earnings outlook underwhelms

Amazon.com Inc. came up short with its outlook for the current quarter, helping to send its stock lower in Thursday's after-hours trading.

For the first quarter, Amazon AMZN models revenue of $151.0 billion to $155.5 billion, versus the $158.6 billion that analysts were looking for. Amazon mentioned an "unusually large, unfavorable impact" from currency, expected to be $2.1 billion for the first quarter. Also, the company noted that it had $1.5 billion in sales last year related to Leap Day.

The company also expects $14.0 billion to $18.0 billion in operating income for the period, while analysts had been projecting $18.3 billion.

Honeywell to Break Up in Bid to Re-Create Some GE Magic

One of America's last big industrial conglomerates is carving itself up.

Honeywell International said it plans to separate its aerospace division from its automation business and move ahead with plans to spin off its advanced-materials arm, confirming an earlier report from The Wall Street Journal.

The moves are the culmination of a portfolio review that Honeywell's board and Chief Executive Officer Vimal Kapur launched roughly one year ago.

Expected Major Events for Friday

04:01/MAL: Dec Industrial Production Index

04:01/MAL: Dec Manufacturing sales

05:00/JPN: Dec Indexes of Business Conditions - Preliminary Release

05:30/AUS: Jan Official Reserve Assets

07:00/MAL: Jan International Reserves, end of month

07:30/THA: Weekly International Reserves

08:00/TAI: Jan Price Indexes: Consumer Prices $(CPI.UK)$

08:00/TAI: Jan Merchandise trade

08:30/HK: Jan Foreign Exchange Reserves

09:00/SIN: Jan Official Foreign Reserves

09:59/PHI: Jan Gross International Reserves

09:59/CHN: Jan Foreign Exchange Reserves

10:59/INA: Jan International Reserves

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(END) Dow Jones Newswires

February 06, 2025 16:57 ET (21:57 GMT)

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