US close: Stocks end lower, snap four-day rally

(Sharecast News) - US stocks finished lower on Friday, with the S&P 500 pulling back from record highs, as investors reacted to data showing that private sector growth slowed to a nine-month low. The Dow and S&P 500 both closed 0.3% lower, while the Nasdaq slipped 0.5%, with all three benchmarks snapping a four-day winning streak. The S&P 500 in particular was retreating after hitting a new closing high of 6,118.71 on Thursday.

However, despite Friday's losses, major indices were on track to deliver a second consecutive winning week on Friday, with Donald Trump's return to the White House giving investors confidence regarding the state of the US economy thanks to his pro-business approach to governing.

"The focal point shifts to the upcoming Fed meeting next week, with minimal expectations of a significant shift in the cautious stance due to recent political changes and the absence of updated projections. [December's] robust employment report further supports the anticipation of a status quo," said Patrick Munnelly, partner of market strategy at Tickmill Group.

Economic data barrage

On the macro front, the S&P Global US manufacturing PMI increased to 50.1 in January, according to a preliminary reading, up from 49.4 in December and ahead of market expectations for a reading of 49.7, pointing to a modest improvement in manufacturing conditions after six months of decline.

The services PMI, on the other hand, fell from 56.8 to 52.8 in January, missing expectations for only a slight fall to 56.5, marking the softest pace of expansion since April 2024.

As a result, the composite PMI - an overall indicator of private sector activity - fell to 52.4 in January, down from December's 32-month high of 55.4 and the lowest rate of growth in nine months.

Elsewhere, existing home sales rose by 2.2% to a seasonally adjusted annualised rate of 4.38m in December, according to the National Association of Realtors, the highest reading since February 2024.

Finally, the University of Michigan's consumer sentiment index decreased to 71.1 in January, down from 74 in December and well below the 73.2 forecast.

Market movers

Shares in semiconductor outfit Texas Instruments dropped nearly 8% on the back of disappointing quarterly earnings guidance.

Boeing shares were lower after the aerospace group warned of a significantly larger-than-expected fourth-quarter loss of around $4bn - nearly three times the size forecasted by analysts.

US-listed shares of Danish pharmaceutical giant Novo Nordisk jumped 8% thanks to positive headline results from early-stage trials into one of its weight loss drugs.

Meanwhile, credit card giant American Express underwhelmed with record annual revenues of $65.9bn, up 9% year-on-year thanks to solid holiday spending, as shares slipped.

Dow Jones - Risers

Walgreens Boots Alliance, Inc. (WBA) $11.87 1.11% Walmart Inc. (WMT) $94.74 1.01% Walt Disney Co. (DIS) $112.16 1.01% Verizon Communications Inc. (VZ) $39.54 0.92% Coca-Cola Co. (KO) $61.92 0.63% Visa Inc. (V) $330.14 0.61% Unitedhealth Group Inc. (UNH) $532.51 0.52% McDonald's Corp. (MCD) $285.42 0.36% Caterpillar Inc. (CAT) $407.63 0.30% Travelers Company Inc. (TRV) $241.43 0.14%

Dow Jones - Fallers

Intel Corp. (INTC) $20.83 -3.43% American Express Co. (AXP) $321.34 -1.39% Boeing Co. (BA) $176.06 -1.37% Procter & Gamble Co. (PG) $164.41 -1.22% Merck & Co. Inc. (MRK) $95.55 -1.12% Nike Inc. (NKE) $73.63 -0.97% Amgen Inc. (AMGN) $275.42 -0.89% Microsoft Corp. (MSFT) $444.06 -0.59% International Business Machines Corporation (CDI) (IBM) $224.80 -0.55% JP Morgan Chase & Co. (JPM) $264.84 -0.42%

S&P 500 - Risers

NextEra Energy Inc. (NEE) $72.83 5.20% Welltower Inc (WELL) $136.74 3.41% Estee Lauder Co. Inc. (EL) $82.48 2.96% Edison International (EIX) $58.87 2.78% VF Corp. (VFC) $26.34 2.73% CenturyLink Inc. (LUMN) $5.92 2.60% International Paper Co. (IP) $60.09 2.54% Eli Lilly and Company (LLY) $785.47 2.45% Boston Properties Inc. (BXP) $73.56 2.37% Brown Forman Corp. Class B (BF.B) $33.92 2.32%

S&P 500 - Fallers

Texas Instruments Inc (TXN) $185.52 -7.52% CF Industries Holdings Inc. (CF) $88.10 -7.50% PVH Corp. (PVH) $90.30 -6.25% Microchip Technology Inc. (MCHP) $56.39 -5.34% Analog Devices Inc. (ADI) $217.37 -4.81% Mohawk Inds Inc. (MHK) $125.25 -4.23% Intuitive Surgical Inc. (ISRG) $584.05 -4.04% Ipg Photonics Corp. (IPGP) $74.06 -3.91% Intel Corp. (INTC) $20.83 -3.43% Nvidia Corp. (NVDA) $142.62 -3.12%

Nasdaq 100 - Risers

JD.com, Inc. (JD) $40.72 5.22% Trip.com Group Limited (TCOM) $71.52 5.18% NetEase Inc. Ads (NTES) $103.18 3.75% Qurate Retail Inc. (QRTEA) $0.38 2.42% Charter Communications Inc. (CHTR) $367.58 2.12% Dollar Tree Inc (DLTR) $72.48 1.88% Broadcom Inc. (AVGO) $244.70 1.84% Meta Platforms Inc. (META) $647.49 1.73% T-Mobile Us, Inc. (TMUS) $218.57 1.17% Workday, Inc. (WDAY) $258.28 1.17%

Nasdaq 100 - Fallers

Texas Instruments Inc (TXN) $185.52 -7.52% Microchip Technology Inc. (MCHP) $56.39 -5.34% Analog Devices Inc. (ADI) $217.37 -4.81% Intuitive Surgical Inc. (ISRG) $584.05 -4.04% Intel Corp. (INTC) $20.83 -3.43% Nvidia Corp. (NVDA) $142.62 -3.12% CSX Corp. (CSX) $32.69 -2.91% Regeneron Pharmaceuticals Inc. (REGN) $675.79 -2.71% Applied Materials Inc. (AMAT) $186.75 -2.07% Lam Research Corp. (LRCX) $79.68 -1.91%