Dow, S&P 500 rise while Nasdaq slips as Trump takes the spotlight at Davos

These were the biggest movers on Yahoo Finance’s trending tickers page on Thursday.

Electronic Arts (EA)

Electronic Arts stock tumbled more than 15% on Thursday after the game publisher said quarterly bookings fell to roughly $2.22 billion, missing analyst expectations.

GE Aerospace (GE)

Shares of the jet engine maker jumped nearly 7% in Thursday’s after the company exceeded fourth quarter estimates on both revenue and earnings.

GE Aerospace also gave an optimistic outlook for the full year 2025 and announced a $7 billion stock buyback program.

American Airlines (AAL)

American Airlines stock tumbled after forecasting a surprise loss for the first quarter. The air carrier projects an adjusted loss of as much as $0.40 a share for the current quarter. Analysts were expecting a profit of at least $0.01, according to estimates compiled by Bloomberg.

American Airlines posted record fourth quarter revenue of $13.7 billion and record full-year revenue of $54.2 billion.

Deals to purchase a home fell through at a record rate in December as high mortgage rates and housing costs caused buyers to lose faith.

Nearly 40,000 home purchase agreements were canceled in December, equal to 16.2% of homes that went under contract that month — the highest percentage of any December on record, according to Redfin.

House hunters are having trouble committing because housing costs remain expensive. According to Freddie Mac, mortgage rates have moved higher over the past six weeks, but this week the average 30-year fixed mortgage rate fell 8 basis points to 6.96% from 7.04%.

“Homebuyers pumped the brakes when mortgage rates ticked back up, and are now in wait-and-see mode,” Jesse Landin, a Redfin real estate agent in San Antonio, said in the Redfin report. “Everyone is just trying to figure out when rates are going to come down again. In the meantime, a lot of house hunters are opting to rent.”

Buyer appetite “will likely slow further in January due to the wildfires impacting Los Angeles—the nation’s second most populous metro area—and winter storms impacting the Mid-Atlantic and Southeast,” Redfin senior economist Elijah de la Campa said in the report.

The S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) traded higher on Thursday following President Trump’s remote comments at the World Economic Forum in Davos, Switzerland.

The broad based index gained more than 0.1%, a stone’s throw away from an intraday record. Meanwhile the Dow gained as much as 0.6%, led by Industrials (XLI).

The tech-heavy Nasdaq Composite (^IXIC), which opened the session lower, fell 0.3%. Yields on the 10-year-treasury (^TNX) also inched up to 4.65%

During his remarks via video at Davos, the President said he will ask OPEC to lower the price of oil, and warned companies that if they don’t manufacture in the US, they will have to pay a tariff.

“If you don’t make your product in America, which is your prerogative, then very simply you will have to pay a tariff — differing amounts, but a tariff.”

The President did not mention tariffs specifically against China, a major manufacturer of goods sold in the US.

President Trump said he will ask the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia to bring down the price of oil.

“I’m also going to ask Saudi Arabia and OPEC to bring down the cost of oil. You’ve got to bring it down,” said Trump during his remote speech at the World Economic Forum in Davos, Switzerland.

“If the price came down, the Russia-Ukraine war would end immediately. Right now the price is high enough that that war will continue, you’ve got to bring down the oil price. You’ve got to end that war,” he said.

Russia, a major producer of oil and gas, is an OPEC ally. The cartel currently has production cuts in place in order to keep a floor on prices.

Both West Texas Intermediate (CL=F) and Brent (BZ=F) fell roughly 1% following Trump’s comments.

President Trump said he will demand that interest rates drop in the US.

“I’ll demand that interest rates drop immediately, and likewise, they should be dropping all over the world. Interest rates should follow us,” Trump said remotely at the World Economic Forum in Davos, Switzerland.

The Dow Jones Industrial Average (^DJI) moved to a session high, up 0.5% while the S&P 500 (^GSPC) gained 0.2%. The Nasdaq Composite (^IXIC) fell slightly.

President Trump spoke remotely at the World Economic Forum in Davos, Switzerland, appearing via video to a packed room of CEOs and world officials.

The President first listed a series of actions he took upon entering the White House, including withdrawing from the Paris climate accord and declaring a national energy emergency.

On the topic of tariffs, the President said: “My message to every business in the world is very simple: Come make your product in America, and we will give you among the lowest taxes of any nation on Earth.”

“But if you don’t make your product in America, which is your prerogative, then very simply you will have to pay a tariff — differing amounts, but a tariff.”

Attendees at the World Economic Forum in Davos are waiting for President Trump’s special address via video.

Investors watching the remote speech will pay attention to any talk about the President’s tariff policy.

President Trump will also take questions after his remarks.

Yahoo Finance’s Laura Bratton reports:

Chip stocks fell across the board early on Thursday after a Nvidia (NVDA) supplier made comments on its earnings call that indicated uncertainty about semiconductor demand this year.

South Korea-based SK Hynix (000660.KS) makes memory chips for Nvidia’s GPUs (graphics processing units), which are used in data centers to underpin artificial intelligence software.

After SK Hynix reported fourth quarter earnings that surpassed analysts’ expectations, its head of finance, Woo-Hyun Kim, painted a careful picture of the year ahead.

“2025’s memory demand outlook is clouded by inventory adjustments from PC and smartphone OEMs [original equipment manufacturers] as well as strengthened protective trade policies and geopolitical risks,” Kim said on a post-earnings conference call.

Following the comments, Nvidia shares sank as much as 2%. British chip designer Arm’s (ARM) stock dropped nearly 6%, and SK Hynix rival Micron (MU) shares fell roughly 4%.

Read more here.

Yahoo Finance’s Brian Sozzi reports from Davos:

Up and down the promenade at the World Economic Forum this week, leaders agree on one thing about artificial intelligence: It’s darn powerful, and it’s starting to materially impact how business is done and will be done.

Think AI on the cusp of rendering human call centers and HR departments obsolete.

What leaders can’t agree on is whether AI is already out of control — whether it’s beyond the point of being successfully regulated or having the proper guardrails.

“I’m not sure it’s [AI] out of control. I think there are use cases that sometimes people want to showcase [for] … their own benefits, to see, hey, this is the potential. But the reality is that enterprises are very smart,” HPE CEO Antonio Neri told Yahoo Finance at the annual gathering of top business leaders.

Read more here.

American Airlines (AAL) stock fell nearly 8% after the carrier forecast a surprise loss for its first quarter. The outlook is a departure from the major air travel carriers’ bullish performance in recent quarters.

American expects an adjusted loss of as much as $0.40 a share for the current quarter. Analysts were expecting a profit of at least $0.01, according to estimates compiled by Bloomberg.

The airline posted record fourth quarter revenue of $13.7 billion and record full-year revenue of $54.2 billion.

The company’s profit for the current quarter is expected to be impacted by a rise in non-fuel expenses as it continues to win back business after changing its corporate sales strategy.

American had implemented changes that pushed corporate customers to book directly with the airline, instead of third-party travel managers.

Electronic Arts (EA) stock tumbled 15% on Thursday after the game publisher said quarterly bookings fell to roughly $2.22 billion, missing analyst expectations.

The decline was due to the poor performance of two of its video games: soccer title “EA Sports FC 2025” and “Dragon Age: The Veilguard.” Both of those missed bookings expectations.

The company cut its bookings outlook for the 2025 fiscal year to a range of $7 billion to $7.15 billion.

EA is expected to release its complete results on Feb. 4.

US stocks were mixed on Thursday, pulling back from near record levels as the markets awaited a speech from President Trump at the World Economic Forum.

The S&P 500 (^GSPC) slipped roughly 0.2%, coming off a record intraday high on Wednesday, while the Dow Jones Industrial Average (^DJI) was little changed.

Meanwhile, the Nasdaq Composite (^IXIC) fell 0.5% as tech stocks struggled. Nvidia (NVDA) shares slipped, along with those of Apple (AAPL) and Google parent Alphabet (GOOG, GOOGL).

Investors are still awaiting new developments on the tariff front. Trump is expected to remotely give an address to the WEF in Davos later in the day.

Economic data: Initial jobless claims (week ended Jan. 18); Kansas City Fed. Manufacturing Activity (January)

Earnings: American Airlines (AAL), Alaska Airlines (ALK), CSX Corporation (CSX), Freeport-McMoRan (FCX), GE Aerospace (GE), Intuitive Surgical (ISRG), Texas Instruments (TXN), Union Pacific Corporation (UNP)

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

Trump’s new crypto token is the industry in its purest form

Why Trump is laser-focused on tariffs for Canada

Intel races to find next CEO before it sinks into irrelevance

Amazon to cut 1,700 jobs, close warehouses in Quebec

GE Aerospace posts earnings beat, plans $7B buyback

American Air stock drops as 2025 profit forecast falls short

Tesla to significantly hike prices for all models in Canada

Musk clashes with OpenAI’s Altman over ‘Stargate’