US STOCKS-Wall Street ends mixed in choppy trading; Amazon, jobs report in focus

Reuters
07 Feb
US STOCKS-Wall Street ends mixed in choppy trading; Amazon, jobs report in focus

Honeywell to separate aerospace and automation businesses

Tapestry jumps after raising annual sales and profit forecast

Amazon ticks up ahead of earnings

Updates at the close

By Abigail Summerville and Sukriti Gupta

Feb 6 (Reuters) - The S&P 500 and the Nasdaq ended higher, while the Dow closed lower after a choppy trading session on Thursday, as investors sifted through earnings reports while awaiting Amazon's results after the bell and a key jobs report on Friday.

Drugmaker Eli Lilly LLY.N rose after the company forecast annual profit largely above estimates, while fashion house Tapestry TPR.N jumped on an annual sales and profit forecast increase.

Philip Morris International PM.N advanced after the cigarette maker posted better-than-expected quarterly results and forecast 2025 profit above estimates.

Amazon.com AMZN.O ticked up ahead of its quarterly earnings report. Investors will look for updates on its artificial intelligence investments, after Chinese startup DeepSeek's cheaper AI model sharpened investor scrutiny of the billions U.S. tech giants have spent developing the technology.

"Today, the main focus is corporate earnings. Tariffs are in the background," said Zachary Hill, head of portfolio management at Horizon Investments.

"Amazon will be the sixth of the Magnificent Seven to report. The AI theme has been under quite a lot of volatility over the last few weeks with the DeepSeek news ... We’re watching tonight for any thoughts that (Amazon) has to say around that," Hill said.

Honeywell HON.O fell after the industrial and aerospace giant said it would split into three independently listed companies and forecast downbeat sales and profit for 2025.

According to preliminary data, the S&P 500 .SPX gained 21.38 points, or 0.35%, to end at 6,082.86 points, while the Nasdaq Composite .IXIC gained 95.95 points, or 0.49%, to 19,788.28. The Dow Jones Industrial Average .DJI fell 133.76 points, or 0.30%, to 44,739.52.

Most of the 11 S&P 500 sectors traded higher, with financial services .SPSY and consumer staples .SPLRCS leading gains, and energy .SPNY stocks losing the most ground.

Markets saw a dismal start to the week when U.S. President Donald Trump announced sweeping trade tariffs over the weekend, but suspended the levies on goods from Mexico and Canada on Monday for a month.

The January nonfarm payrolls report is due on Friday, a crucial metric in gauging the state of the labor market and the Federal Reserve's rate path.

Traders do not expect the Fed to make a move on interest rates in its next meeting in March, but a cut is widely anticipated in June, according to the CME's FedWatch.

Data released on Thursday showed the number of Americans filing new applications for unemployment benefits increased moderately last week.

Elsewhere in corporate moves, Skyworks Solutions SWKS.O plunged after the Apple supplier forecast declines in revenue in its mobile segment and projected current-quarter profits below estimates.

Qualcomm QCOM.O fell as the chip designer's executives said its lucrative patent-licensing business would not see sales growth this year after a license agreement with Huawei Technologies expired.

Ford Motor F.N dropped after the automaker forecast up to $5.5 billion in losses in its electric vehicle and software operations this year.

(Reporting by Abigail Summerville in New York, Shashwat Chauhan and Sukriti Gupta in Bengaluru; Editing by Pooja Desai, Shinjini Ganguli, Nia Williams and Rod Nickel)

((Shashwat.Chauhan@thomsonreuters.com;))

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