- Nasdaq leads losses, while DJIA shows strength
- Mixed reception of major airline earnings reports
- Electronic Arts slumps on downward forecasts revision
US equities pull back on Thursday, as waning AI optimism and uncertainty around President Trump’s tariff plans weighed on markets. Nasdaq falls 0.4%, led by losses in megacap tech stocks like Nvidia (-1%) and Amazon (-0.4%). Similarly, Russell 2000 trades 0,35% lower. S&P500 trades flat, while Dow Jones gains 0.23%. Investors are awaiting clarity on Trump's trade policies, with his upcoming speech at Davos expected to provide further details on tariffs and their potential market impact.
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Create account Try a demo Download mobile app Download mobile appVolatility currently observed on Wall Street. Source: xStation5
US100 (D1)
The contract for Nasdaq 100 has just respected the frequently tested resistance level around 22,110 mark. The index seems well stuck within the current consolidation zone between 21,100 and 22,100, experiencing significant volatility upon the post-inauguration decisions and dynamics. The shaky performance of certain Magnificent Seven stocks (Apple, Alphabet, Nvidia) is currently weighing on the index. Additionally, chip stocks suffer due to the uncertainty around semiconductors demand, reported by Korean SK Hynix, supplying memory chips to Nvidia.
Source: xStation5
Corporate news:
- Alaska Air (ALK.US) opened 5.5% higher on Q4 2024 earnings and smaller-than-expected loss forecast for the Q1 2025. The adjusted loss per share has been revised from 70 to 50 cents.
- Revenue: $3.54B (+38% YoY, est.: $3.44B)
- Revenue per available seat mile (RASM): 15.54 c. (+3.9% YoY)
- Capacity guidance (2025) : +2.5-3.5%
- EPS guidance (2025): greater than $5.75
- American Airlines (AAL.US) falls 9.5% due to an unexpected loss forecast for Q1 2025. The carrier sees an adjusted loss between 20 and 40 cents per share against the expected 1 cent average profit.
- Revenue: $13.66B (+4.6% YoY, est.: $13.43B)
- EPS: $0.86 (previously: $0.29, est.: $0.66)
- EPS guidance (2025): $1.70-$2.70 (est.: $2.42)
- Electronic Arts (EA.US) slumps 17.6% at the opening after weak Q3 financial results and a downward revision of its full-year forecast for FY 2024/25, driven by underperformance in key sports titles and the disappointing launch of Dragon Age: The Veilguard.
- Preliminary net bookings: $2.22B, est.: $2.51B
- Preliminary total net revenue: $1.88B, est.: $1.99B
- Preliminary earnings per share (EPS): approx. $1.11
- Elevance (ELV.US) shares add 2.3% on increased quarterly dividend (+5%) and lower-than-expected medical costs in Q4 2024. The health insurer's results exceeded Wall Street estimates, reflecting improved operations in response to industry challenges, with peers like UnitedHealth and Humana also seeing gains.
- Revenue: $45.44B (est. $45.21B)
- Adjusted EPS: $3.84 (est.: $3.81)
- Operating Revenue: $44.99B (est.: $44.92B)
- Adjusted EPS guidance (2025): $34.15–$34.85 (est.: $34.56)
- GE Aerospace (GE.US) shares rise 7.7% as the company exceeded Wall Street expectations for Q4 results, driven by strong maintenance demand and progress in overcoming supply-chain challenges. The company also announced a $7 billion stock buyback plan for 2025 and a 30% dividend increase, further reinforcing its streamlined focus on aviation under CEO Larry Culp.
- Adjusted revenue: $9.88B (+16% YoY)
- Adjusted EPS: $1.32 (previously: $0.60, est.: $1.04)
- Adjusted free cash flow: $1.52B (+21% YoY, est.: $1.28B)
- Total orders: $15.5B
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