Wall Street saw modest movement on Thursday, with gains in fashion and cigarette stocks offsetting losses in Ford Motor and Qualcomm following their latest earnings reports.
The S&P 500 rose 0.2% in early trading, reflecting positive market performance in Europe and Asia. The Dow Jones Industrial Average was up by 36 points, or 0.1%, while the Nasdaq composite gained 0.1%.
Tapestry, the parent company of Coach and Kate Spade, was a major contributor to the market’s uptick, surging 18.6%. The company reported stronger-than-expected profits for the quarter, driven by attracting younger customers. Tapestry also raised its forecast for revenue and profit growth for the fiscal year.
Ralph Lauren, which also benefits from global consumer spending, saw its stock jump 15.7% after surpassing profit and revenue expectations. The company saw particularly strong growth in China, where it opened new stores in Hong Kong and Beijing during the holiday quarter.
Philip Morris International was a key driver of the S&P 500’s rise, with its stock jumping 8% after the company, known for selling Marlboro cigarettes and smokeless tobacco products globally, reported better-than-expected profits. Analysts also highlighted the company’s optimistic financial outlook for the upcoming year, especially regarding its Zyn nicotine pouches.
Ford Motor saw a 4.9% decline in its stock despite reporting stronger-than-expected profits and revenue for the latest quarter. Investors were more focused on the company’s 2025 financial outlook, which it said reflected challenges from market conditions. Ford’s cash generation forecast for this year also fell short of analysts’ expectations.
Qualcomm, on the other hand, dragged down the tech sector with a 4.8% drop in its stock. Although the company, which supplies components for smartphones and other devices, reported profits above analysts’ predictions, concerns about the wireless chip industry and high expectations for Qualcomm’s performance weighed on investor sentiment.
Honeywell’s stock dropped 4.6% after the company announced plans to split into three independent, publicly traded businesses, following a trend set by other conglomerates like General Electric. The North Carolina-based company, one of the few remaining U.S. conglomerates, expects to complete the spin-off of its automation and aerospace units by late 2026.
In the bond market, Treasury yields edged up, with the yield on the 10-year Treasury rising to 4.44% from 4.43% on Wednesday.
A report released in the morning showed that more U.S. workers applied for unemployment benefits last week than expected, though the number remains low by historical standards. A more detailed report due on Friday will reveal how many jobs were added by U.S. employers in January.
While the U.S. economy has performed better than many anticipated, there is growing concern over the potential impact of tariffs that could come from President Donald Trump.
After causing turmoil in global financial markets earlier this week, concerns about a potential global trade war have eased somewhat following President Trump’s decision to grant 30-day delays on tariffs for both Mexico and Canada. This move raised hopes that Trump views tariffs more as a negotiation tool rather than a long-term strategy.
During a discussion of Ford’s earnings and financial outlook, CEO Jim Farley mentioned that the company could handle a few weeks of 25% tariffs on imports from Canada and Mexico. However, if the tariffs continue for a longer period, they could have a significant negative impact on the industry, leading to higher prices for consumers, job losses in the U.S., and billions of dollars in lost profits.
In international markets, London’s FTSE 100 rose 1.5% after the Bank of England reduced its key interest rate and lowered its economic growth forecast. The British economy has struggled to grow in the past six months, prompting the Bank of England to cut its growth projection for the year to just 0.75%.
Stock indexes also saw gains, with Paris up 1.2%, Hong Kong rising 1.4%, and Tokyo increasing by 0.6%.
In Japan, shares of Honda Motor Co. and Nissan Motor Corp. both climbed after Japanese media reported that the companies were ending discussions about creating a joint holding company. Neither company has confirmed the report, but an update on the talks is anticipated by mid-February, though no specific date has been set.