NEW YORK — On Thursday, trading on Wall Street exhibited a mixed performance as gains in fashion and tobacco stocks countered declines from Ford Motor and Qualcomm.
The S&P 500 experienced a rise of 0.4%, buoyed by positive performances from various stock markets in Europe and Asia. In contrast, the Dow Jones Industrial Average fell by 125 points, or 0.3%, while the Nasdaq composite made a slight gain of 0.5%.
Tapestry, the parent company of the Coach and Kate Spade brands, was one of the standout performers, seeing its shares jump 12%. The firm reported quarterly profits that surpassed analyst predictions, driven by its ability to attract a younger consumer base. Additionally, Tapestry raised its guidance for both revenue and profit growth for the fiscal year ahead.
Philip Morris International, renowned for its Marlboro cigarettes and smokeless tobacco items, also contributed positively to the S&P 500 with a notable gain of 10.9%. The company exceeded profit expectations and provided optimistic financial projections, highlighting robust performance in its Zyn nicotine pouch product line.
Conversely, Ford Motor saw its stock drop 7.5%, despite the automaker reporting stronger-than-expected profits and revenues for the latest quarter. Investors seemed more focused on Ford’s financial outlook for 2025, which included concerns over various market challenges. The company’s cash generation forecast midpoint did not meet analysts’ expectations, raising further concerns.
Qualcomm’s stock declined by 3.7%, placing additional pressure on the market indexes. Although Qualcomm’s quarterly profits exceeded analyst forecasts, there are rising concerns about the broader outlook for the wireless chip sector, indicating that expectations may have been overly ambitious.
In the bond market, Treasury yields remained mostly stable after a report showed an unexpected uptick in unemployment benefit claims, although the overall number of claims remains historically low. A more detailed employment report is anticipated on Friday, detailing job additions by U.S. employers for January.
There is a collective hope that the upcoming job data will reflect a resilient employment market, assuaging fears of an economic downturn, while still not being robust enough to escalate inflationary pressures. The U.S. economy has proven to be sturdier than many critics anticipated, though it faces rising scrutiny due to the potential imposition of tariffs from the administration.
Following a volatile week in global financial markets, concerns about a significant trade war have diminished somewhat after the President announced a 30-day delay on tariffs for both Mexico and Canada.
During discussions about Ford Motor’s earnings, CEO Jim Farley commented on the potential impacts of a 25% tariff on imports from Canada and Mexico, asserting that the company could sustain such conditions for a limited time. However, he warned that prolonged tariffs would lead to substantial industry ramifications, including increased costs for consumers and potential job losses in the U.S.
Another consumer-driven company, Ralph Lauren, saw its stock increase by 9.7% following an earnings report that exceeded expectations, particularly benefiting from strong growth in China, where the company recently launched stores in Hong Kong and Beijing.
Eli Lilly’s shares rose 3.3% thanks to a surge in demand for its diabetes and obesity medications, bolstering its profitability.
On the downside, Honeywell’s stock fell by 5.6% and weighed heavily on the S&P 500 after the company revealed plans to separate into three independent publicly traded entities, following a trend set by other conglomerates like General Electric. The split, which is expected to be finalized by late 2026, will see the company spinning off its automation and aerospace technology sectors.
Overall, the S&P 500 gained 22.09 points to close at 6,083.57. The Dow Jones Industrial Average concluded down 125.65 points at 44,747.63, while the Nasdaq composite increased by 99.66 points to 19,791.99.
Across international markets, London’s FTSE 100 rose by 1.2% after the Bank of England reduced its main interest rate while revising its economic growth forecast downward. Recent data indicated minimal growth for the British economy over the past half-year, prompting the Bank of England to halve its growth prediction for this year to 0.75%.
Additionally, stock indexes gained 1.5% in Paris, 1.4% in Hong Kong, and 0.6% in Tokyo.
In Japan, Honda Motor Co. experienced a decline in its stock value, while Nissan Motor Corp. saw a modest gain, amid reports that the companies were ceasing discussions on forming a joint holding company. Neither entity has confirmed the reports, with an update on the negotiations expected by mid-February, though no specific date has been set.
The yield on the 10-year Treasury remained unchanged at 4.43%, the same level it was at late Wednesday.
