S&P 500, Nasdaq edge higher with Amazon set to highlight earnings rush

The Dow Jones Industrial Average (^DJI) was down more than 150 points on Thursday, weighed by shares of Salesforce (CRM) a and Honeywell (HON).

Conglomerate Honeywell said it would split in three separate companies, a move anticipated by Wall Street after pressure from activist investor Elliott Management. The stock slid more than 5%.

Salesforce fell more than 5% after the software giant announced a management change with the creation of a new role which combines two big positions into one.

Starting on March 21, lead independent board director Robin Washington will become president and chief operating and financial officer (COFO).

Yahoo Finance’s Laura Bratton reports:

Arm Holdings (ARM) and Qualcomm (QCOM) stocks each fell more than 4% Thursday as their quarterly results showed signs the AI boom isn’t yet driving a surge in demand for the consumer devices powered by the companies’ chips.

Despite their above-forecast quarterly earnings results the day prior, investors signaled they aren’t so patiently waiting to see if artificial intelligence will drive a new wave of demand for consumer devices that rely on the companies’ chips.

Read more here.

Yahoo Finance’s Alexandra Canal reports:

President Trump’s back-and-forth trade policy has created added uncertainty among investors still searching for clarity on the Federal Reserve’s next move, with tariffs muddying the inflation outlook.

But some on Wall Street think the labor market, not inflation, is the place to look for better clues on what could push the Fed to cut rates later this year. Just look at what happened in September, when the central bank delivered a jumbo 50 basis point cut, largely to protect the jobs market after the unemployment rate unexpectedly jumped.

“The number one risk remains an inflection higher in the unemployment rate, which is the key macro data for the foreseeable future,” Citi analyst Stuart Kaiser wrote in reaction to last week’s Fed decision.

Read more here.

Roblox (RBLX) stock tumbled as much as 30% before paring losses on Thursday, falling after the video game platform missed key quarterly metrics.

The company’s daily active users for the fourth quarter came in at 85.3 million, short of estimates for 88.39 million. Hours engaged also came in light, at 18.7 billion versus expectations for 19.42 billion.

The stock pared losses in early trading, declining 13% by 10:40 a.m. ET.

Tesla stock (TSLA) sank more than 2% on Thursday and was on track to extend losses for a second day in a row.

Shares of the EV giant came under pressure after automaker Ford (F) issued muted full-year guidance.

The declines from Tesla on Wednesday came after news its Germany sales plunged 59% in January, adding to concerns that CEO Elon Musk’s involvement in politics there could be turning off potential buyers.

Tesla’s stock is down more than 9% year to date but is still up roughly 45% since Election Day on Nov. 5 as Musk backs President Donald Trump.

Peloton (PTON)

The bike maker’s stock soared 23% as quarterly sales came in better than expected, thanks in part to its seasonal partnership with Costco (COST).

“Our new seasonal partnership with Costco drove more Bike+ unit sales than any other third-party retail partner during Q2,” the company said in a letter to shareholders.

Peloton’s operating expenses were down 25% year over year. The company raised its full-year guidance range for adjusted EBITDA and free cash flow.

Qualcomm (QCOM)

Shares of Qualcomm were down 5% on Thursday after the chipmaker’s quarterly earnings came in better than expected. But guidance for its licensing business disappointed Wall Street.

Qualcomm (QCOM) said it expected revenue from its licensing business to come in between $1.25 billion and $1.45 billion for the second quarter, compared to analyst expectations of $1.4 billion.

Honeywell (HON)

Shares of Honeywell fell 4% on Thursday after the conglomerate ended months of speculation by announcing it would split into three listed companies: Honeywell Automation, Honeywell Aerospace, and Advanced Materials.

The automation business will stay focused on building that technology, while aerospace is dedicated to tech for plane cockpits. And Advanced Materials covers solutions for sectors such as healthcare.

US stocks rose on Thursday as investors digested company earnings and awaited e-commerce giant’s Amazon (AMZN) results due after the bell.

The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) both rose more than 0.2%. The tech-heavy Nasdaq Composite (^IXIC) moved above the flat line on the heels of two winning days in a row for the major gauges.

Among the major movers on Thursday, Ford (F) shares slid as the automaker warned of lower profits if tariffs were to be implemented on Canada and Mexico.

Shares of Peloton (PTON) soared 23% after the fitness equipment maker posted better-than-expected sales, thanks in part to its seasonal partnership with Costco (COST).

Disappointing results from chipmakers Arm (ARM) and Qualcomm (QCOM) weighed on those shares.

Yahoo Finance’s Anjalee Khemlani reports:

Eli Lilly (LLY) reported fourth quarter and full year earnings for 2024 on Thursday, with results largely beating Wall Street estimates, sending its stock slightly higher in pre-market trading. But the company missed on GLP-1 sales.

The pharma giant has had a few hits and misses in the past few months. Its GLP-1 tirzepatide drugs were removed from the FDA drug shortage list, which shuts down compounding pharmacy knockoffs. But it also revised down its fourth quarter 2024 guidance last month, ahead of the earnings release.

Read more here.

Economic data: Challenger jobs cuts (year-over-year, January); Initial jobless claims (week ending Feb. 1)

Earnings: Amazon (AMZN), Eli Lilly (LLY), Affirm (AFRM), e.l.f. Beauty (ELF), Bristol Myers Squibb (BMY), ConocoPhillips (COP), Hershey (HSY), Peloton (PTON), Pinterest (PINS), Philip Morris International (PM), Roblox (RBLX), Tapestry (TPR), Yum! Brands (YUM)

Here are some of the biggest stories you may have missed overnight and early this morning:

The Elon Musk-Sam Altman feud is turning into a long legal war

Honeywell to break up into three companies: WSJ reports

Trump, Musk are setting up a fight around a Watergate-era law

The biggest factor that could break the stable labor market

Musk ‘buyout’ taken by 40,000 federal workers as deadline nears

Bessent: Trump wants lower 10-year yields, not Fed cuts

Arm stock slides after chip firm dials down FY sales forecast