Investing.com – US stocks traded in a mixed fashion Thursday, as investors digested more corporate earnings ahead of a speech by new President Donald Trump at Davos.
At 09:35 ET (14:35 GMT), the Dow Jones Industrial Average rose 45 points, or 0.1%, while the S&P 500 index was 10 points, or 0.2%, lower, and the NASDAQ Composite dropped 100 points, or 0.5%.
The main Wall Street indices posted healthy gains on Wednesday, with Netflix (NASDAQ:NFLX) starring as the streaming giant reported strong holiday quarter results that were bolstered by a peak in the number of subscribers to its platform.
Trump to speak at Davos
Trump will remain in focus Thursday, as the new president is set to deliver a speech remotely to the World Economic Conference in Davos, Switzerland later in the session.
The exact topics Trump will cover in his first major speech to global business and political leaders since returning to the White House remain unclear, but investors will be looking for more clarity about his threat to introduce universal tariffs on goods imported to the United States, as well as his position on major geopolitical and economic issues such as the Ukraine-Russia war, the future of Israeli-Palestine relations and economic rivalry with China.
Since his inauguration earlier this week, Trump has signed a slew of executive orders that have addressed a wide range of issues, including immigration, diversity, and energy. He has also moved to take the US out of the Paris climate agreement and the World Health Organization, and has said he will push to rename the Gulf of Mexico to the Gulf of America and take back the Panama Canal from Panama.
American Airlines slumps
The quarterly corporate earnings season continues Thursday, with more senior companies releasing their results.
GE Aerospace (NYSE:GE) stock rose 7% after the aircraft engine supplier forecast a stronger full-year profit as demand for its high-margin parts and services got a boost from airlines flying older jets to sidestep a persistent shortage of new aircraft.
American Airlines (NASDAQ:AAL) stock slumped 8% after the carrier’s first-quarter earnings outlook on Thursday fell short of expectations, forecasting an adjusted loss per share of 20 cents to 40 cents for the first three months of 2025, breaking from a more upbeat outlook from its rivals.
Electronic Arts (NASDAQ:EA) slumped 16% after the video game maker slashed its guidance for net bookings due to sluggish performance of its soccer titles.
Knight-Swift Transportation (NYSE:KNX) stock rose 6% after fourth-quarter results showed improved operating margins, while Alaska Air (NYSE:ALK) gained 3% after fourth-quarter results topped estimates on the top and bottom lines.
Labor market remains solid
Data released earlier Thursday showed that the number of Americans filing new applications for unemployment benefits rose marginally last week, suggesting that solid job growth likely continued in January.
Initial claims for state unemployment benefits increased 6,000 to a seasonally adjusted 223,000 for the week ended Jan. 18.
However, freezing temperatures that have gripped large parts of the country and fires in Los Angeles could boost claims in the coming weeks.
Crude steadies after losses
Oil prices edged higher Thursday, bouncing after a recent downturn as traders braced for higher US production under President Donald Trump.
By 09:35 ET, the US crude futures (WTI) climbed 0.2% to $75.58 a barrel, while the Brent contract rose 0.2% to $79.15 a barrel.
Crude prices have tumbled from near six-month highs in the past week, as uncertainty over Trump’s energy and trade policies weighed. The signing of a ceasefire between Israel and Hamas also sapped some risk premium from crude.
Additionally, data from the American Petroleum Institute, released on Wednesday, showed that US inventories grew 1 million barrels in the week to Jan, 17, after five straight weeks of draws.
The official inventory numbers, from the Energy Information Administration, are due later in the session.
(Ayushman Ojha contributed to this article.)
