US open: Stocks flat before Trump speech, blue chip earnings

(Sharecast News) - US stocks were mixed on Thursday morning in New York with investors showing caution ahead of a number of blue chip earnings announcements and a speech from Donald Trump to the World Economic Forum in Davos. "This could be an opportunity for Mr Trump to clarify his position on tariffs," said David Morrison, senior market analyst at Trade Nation. "So far, he has threatened 25% tariffs on Canadian and Mexican imports, and possibly 10% on Chinese ones as well, all to start on 1st February. Is this a negotiating tactic, or will he just go ahead and do it anyway, and then finesse the art of the deal?"

The Dow opened 0.2% higher, rising for the fourth straight day, while the S&P 500 was flat and the Nasdaq fell 0.2%. The S&P 500, in particular, finished Wednesday's session at 6,086.37, its highest close since hitting a record high of 6,090.27 on 6 December.

Investors were digesting results from a number of blue chips out before the opening bell, including American Airlines and GE Aerospace. Meanwhile, heavyweights Intuitive Surgical, Texas Instruments, CSX Corporation and East West Bancorp are all due to report after markets close.

In economic news, claims for unemployment benefits in the US rose 6,000 to a six-week high of 223,000, with new claims in California at a two-year high as wildfires spread across the north-west LA area. The consensus forecast was 220,000. Claims in California alone rose nearly 6,744 to 60,988, even as seasonal factors anticipated a sharp decline.

Nationwide continuing jobless claims - the number of people continuing to receive benefits - jumped 46,000 to 1.899m, their highest level since November 2021 and well ahead of the 1.860m estimate.

In equity news, shares in American Airlines dropped 9% despite the news of record quarterly and annual sales, as the carrier's outlook for the first quarter disappointed investors. The airline expects to report an adjusted loss per share of 20 to 40 cents for the fourth quarter, with the market having pencilled in a figure closer to a 4 cents loss.

General Electric shares jumped after GE Aerospace reported a strong set of results for the fourth quarter, exceeding analyst expectations. Net income surged 49% to $1.9bn, driven by a 14% increase in revenue to $10.8bn. The company also announced a $7bn share buyback programme for 2025, and a 30% increase in its quarterly dividend.