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GE Aerospace rises on upbeat 2025 profit forecast
Elevance gains after Q4 profit beats estimates
American Airlines falls on downbeat 2025 profit forecast
S&P 500 banks index touches record high
Indexes: Dow up 0.18%, S&P 500 dips 0.05%, Nasdaq off 0.36%
Updates after markets open
By Johann M Cherian and Sukriti Gupta
Jan 23 (Reuters) - Wall Street's main indexes were mixed on Thursday as investors assessed corporate earnings and awaited comments from President Donald Trump to gauge what his trade policy might look like.
JPMorgan Chase JPM.N and Goldman Sachs GS.N rose more than 1% each, aiding the blue-chip Dow's marginal gains. The S&P 500 Banks index .SPXBK rose 1.1% to hit a record high.
More broadly, investors took a pause after the S&P 500 and the Dow logged their sixth session of gains out of seven on Wednesday, with the benchmark index notching an intraday record high for the first time in over a month.
Trump's private-sector $500 billion investment announcement in AI infrastructure, along with Netflix's NFLX.O strong results, provided the latest tailwind for markets, which had been recovering since last week after data showed underlying inflation was cooling despite robust economic activity.
Following previous session's strong gains, artificial intelligence darlings Nvidia NVDA.O dropped 1.4% and Microsoft MSFT.O dipped 0.6%.
Uncertainty about Trump's trade plans prevailed as he said tariffs on imports from Canada, Mexico, China and the European Union could be announced on Feb. 1, although analysts expect April 1 to be the date when major tariff plans will be unveiled.
All eyes will be on Trump's virtual appearance at the World Economic Forum in Davos at 11 a.m. ET.
Trump pulled the U.S. out of the OECD tax deal on Monday. Tariff imposition could threaten a global trade war, add fuel to price pressures and slow down the Federal Reserve's pace of monetary policy easing.
"Any country or any sector that has a large bilateral goods or trade imbalance is going to be certainly in the crosshairs and any country that is deemed to be a currency manipulator may be in the crosshairs," Scott Ladner, chief investment officer at Horizon Investments, said.
Traders expect the Fed to leave interest rates unchanged for the first half of 2025, according to data compiled by LSEG. A rise in longer-dated Treasury yields US10YT=RR, US30YT=RR also limited gains among stocks.
On the economic data front, a Labor Department report showed weekly jobless claims stood at 223,000, compared with expectations of 220,000.
At 09:49 a.m. ET the Dow Jones Industrial Average .DJI rose 77.68 points, or 0.18%, to 44,234.41, the S&P 500 .SPX lost 3.29 points, or 0.05%, to 6,083.25, and the Nasdaq Composite .IXIC lost 72.01 points, or 0.36%, to 19,937.14.
Six of the 11 S&P 500 sectors rose, with energy stocks .SPNY up 0.8%, after two straight sessions of declines.
GE Aerospace GE.N advanced 9.4% after it forecast 2025 profit above estimates, while American Airlines AAL.O lost 8.3% after forecasting 2025 profit below expectations.
Health insurer Elevance ELV.N rose 1.4% after beating estimates for fourth-quarter profit.
Electronic Arts EA.O was down 16.3% after the video game publisher cut its forecast for annual bookings.
Declining issues outnumbered advancers for a 1.77-to-1 ratio on the NYSE and a 1.69-to-1 ratio on the Nasdaq.
The S&P 500 posted 15 new 52-week highs and four new lows, while the Nasdaq Composite recorded 33 new highs and 54 new lows.
(Reporting by Johann M Cherian and Sukriti Gupta in Bengaluru; Editing by Maju Samuel and Shounak Dasgupta)
((johann.mcherian@thomsonreuters.com))
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