Stocks mixed as trade worries weighed, strong earnings buoyed
U.S. stocks closed mixed Thursday after trading cautiously all session, as investors digested strong earnings but worried about prospects for global growth.
Xilinx and Lam Research reported better-than-expected quarterly results.
Texas Instruments fell short in its quarterly revenue estimates, but beat on profit, giving shares a boost.
Airlines were also in focus as American Airlines reported an 8.3 percent rise in quarterly profit, helped by higher fares. JetBlue topped profit and revenue estimates, and Southwest Airlines earnings topped expectations, but blamed a drop in revenue on the partial government shutdown.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XLNX | n.a. | n.a. | n.a. | n.a. |
| LRCX | LAM RESEARCH CORP. | 887.93 | +19.86 | +2.29% |
| AAL | AMERICAN AIRLINES GROUP INC. | 14.22 | -0.31 | -2.13% |
| JBLU | JETBLUE AIRWAYS CORP. | 6.10 | -1.41 | -18.77% |
| LUV | SOUTHWEST AIRLINES CO. | 29.46 | -0.27 | -0.89% |
Comments by International Monetary Fund Managing Director Christine Lagarde restrained equities after she reiterated that the major risk facing the global economy was the U.S.-China trade conflict, which could precipitate the slowdown in the growth of the Chinese economy.
Besides concerns about global growth, investors eyed the partial government shutdown and its possible effect on the markets.
“Right now we’re not thinking it’s going to impact demand," CFRA analyst Jim Corridore told FOX Businesss. "We think the industry is obviously … showing very strong demand for both business and leisure travel. But if this continues and goes on for an extended period with no end in sight, at some point it’s going to hurt.”
Initial claims for state unemployment benefits dropped 13,000 to a seasonally adjusted 199,000 for the week ended Jan. 19, the lowest level since mid-November in 1969.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 38503.69 | +263.71 | +0.69% |
| SP500 | S&P 500 | 5070.55 | +59.95 | +1.20% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15696.639958 | +245.33 | +1.59% |
In Asian markets on Thursday, China’s Shanghai Composite index was up 0.4 percent.
Hong Kong’s Hang Seng rose the same 0.4 percent.
Japan’s Nikkei was little changed, sliding less than 0.1 percent.
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In Europe, the European Central Bank left its monetary policy unchanged as expected, keeping a rate hike later this year on the table even as the eurozone economy suffers its biggest slowdown in half a decade.
Europe's major markets ended the day mixed. London’s FTSE traded down 0.2 percent, Germany’s DAX added 0.5 percent and France’s CAC gained 0.7 percent.
FOX Business' Ken Martin contributed to this report.