(For a Reuters live blog on U.S., UK and European stock
markets, click/ or type LIVE/ in a news window.)
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GE Aerospace rises on upbeat 2025 profit forecast
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Elevance gains after Q4 profit beats estimates
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American Airlines ( AAL ) falls on downbeat 2025 profit forecast
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Jobless claims data due at 8:30 a.m. ET
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Futures: Dow up 0.07%, S&P 500 dips 0.19%, Nasdaq off
0.56%
(Updates with results from GE Aerospace, Elevance)
By Johann M Cherian and Sukriti Gupta
Jan 23 (Reuters) -
U.S. stock index futures were flat-to-slightly lower on
Thursday, as investors paused after Wall Street's strong
performance in the previous session and focused on corporate
earnings, economic data and President Donald Trump's remarks -
all lined up through the day.
At 7:12 a.m. ET, Dow E-minis were up 29 points,
or 0.07%, S&P 500 E-minis were down 11.5 points, or
0.19%, and Nasdaq 100 E-minis were down 123 points, or
0.56%.
The S&P 500 and the blue-chip Dow logged their
sixth session of advances out of seven on Wednesday, with the
benchmark index notching an intraday record high for the first
time in over a month.
Trump's multi-billion show of support for artificial
intelligence infrastructure, along with Netflix's ( NFLX )
strong results, provided the latest tailwind for markets, which
had been recovering since last week after data showed underlying
inflation was cooling despite robust economic activity.
In premarket trading, AI darlings Nvidia ( NVDA ) dropped
1.7% and Microsoft ( MSFT ) dipped 0.7%, while chip stocks such
as Advanced Micro Devices ( AMD ) and Broadcom ( AVGO ) slipped
1.1% each.
Uncertainty about Trump's trade plans prevailed as he said
tariffs on imports from Canada, Mexico, China and the European
Union could be announced on Feb. 1, although analysts expect
April 1 to be the date when major tariff plans will be unveiled.
All eyes will be on Trump's virtual appearance at the World
Economic Forum in Davos at 11:00 a.m. ET.
"One new area of interest may be the international tax code,
where he could potentially tariff (countries) trying to enact
the (Organization for Economic Cooperation and Development's)
Global Minimum Tax - clearly something on the mind of his tech
industry sponsors," said analysts at ING Bank.
Trump pulled the U.S. out of the OECD tax deal on Monday.
Tariff imposition could threaten a global trade war, upside
price pressures and slow down the Federal Reserve's pace of
monetary policy easing.
Traders expect the central bank to leave interest rates
unchanged for the first half of 2025, according to data compiled
by LSEG. A moderate rise in longer-dated Treasury yields
also limited gains among stocks.
On the economic data front, economists expect a Labor
Department report, due at 8:30 a.m. ET, to show jobless claims
stood at 220,000 in the previous week, which could also reflect
some impact from wildfires in California.
Among top movers, GE Aerospace advanced 5.9% after it
forecast 2025 profit above estimates on robust aftermarket
demand.
Elevance rose 4.2% after
beating estimates
for fourth-quarter profit, partly helped by
lower-than-expected spending on medical care for its members.
Results from Elevance boosted other health insurers such
as UnitedHealth Group ( UNH ), Centene ( CNC ), CVS Health ( CVS )
and Humana, rising between 1.4% and 2.6%.
American Airlines ( AAL ) lost 7.5% after it forecast
2025
profit below expectations
.
Electronic Arts ( EA ) was down 15% after the videogame
publisher cut its forecast for annual bookings, citing weakness
in its established soccer franchise.
Micron dropped 3.6% after South Korean rival SK Hynix ( HXSCF )
warned of steeper demand declines in its commodity
memory chips used in smartphones and computers.