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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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S&P 500 banks index touches record high

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Indexes: Dow up 0.70%, S&P 500 up 0.13%, Nasdaq off 0.32%

(Updates prices to mid-afternoon)

By Sinéad Carew and Johann M Cherian

Jan 23 (Reuters) - The benchmark S&P 500 rose to a

record level on Thursday, as investors assessed a mixed bag of

corporate earnings and digested comments from President Donald

Trump, including a call for cuts in interest rates and oil

prices.

At the World Economic Forum in Davos, Switzerland, Trump

demanded that OPEC lower oil prices and that central banks

reduce interest rates, while he warned global business leaders

they will face tariffs for products made anywhere but in the

U.S.

Uncertainty about tariffs has dominated the market's mood as

the president said earlier this week that tariffs on imports

from Canada, Mexico, China and the European Union could begin on

Feb. 1. Analysts, however, widely expect April 1 to be when

major plans will be unveiled.

Investors are concerned tariffs could add to inflation

pressures and slow the Federal Reserve's pace of monetary policy

easing. Traders expect the Fed to leave interest rates unchanged

for the first half of 2025, according to data compiled by LSEG.

But while investors are cautious about tariffs they "like

the idea of interest rates coming down, of oil prices coming

down," said Lindsey Bell, chief strategist at 248 Ventures in

Charlotte, North Carolina.

"All in all, the market is optimistic the more they hear

about Trump policies. We're just seeing a reflection of that

optimism," said Bell.

TECH STOCKS RETREAT

Technology stocks took a step back after rallying

sharply on Wednesday following Trump's announcement of a

private-sector $500-billion investment in AI infrastructure.

Power utility stocks advanced rapidly after Trump told the

World Economic Forum that the United States needs double the

energy it has to power rapidly emerging AI operations.

At 2:20 p.m. EST (1920) the Dow Jones Industrial Average

rose 310.11 points, or 0.70%, to 44,466.84, the S&P 500

gained 8.16 points, or 0.13%, to 6,094.53 and the Nasdaq

Composite lost 63.96 points, or 0.32%, to 19,945.38.

Eight of the 11 S&P 500 sectors rose, with healthcare

up about 1% and leading gains. Industrials .SPLRCI>

edged up 0.96% while utilities rose 0.9%. The S&P 500

banks index was up 0.6% and touched a record high.

Tech was the biggest percentage loser, shedding 0.4%.

Following strong gains in the previous session, tech

heavyweights Nvidia ( NVDA ) and Microsoft ( MSFT ) each fell

about 0.5%.

On the economic data front, a Labor Department report showed

weekly jobless claims stood at 223,000, compared with

expectations of 220,000.

In earnings, GE Aerospace advanced 6.5% after it

forecast 2025 profit above estimates, while American Airlines ( AAL )

lost 8.3% after forecasting 2025 profit below

expectations.

Shares in health insurer Elevance rose 3.1% after

beating estimates for fourth-quarter profit.

Electronic Arts ( EA ) shares sank 17% after the video game

publisher cut its forecast for annual bookings.

Advancing issues outnumbered decliners by a 1.22-to-1 ratio

on the NYSE, where there were 164 new highs and 48 new lows.

On the Nasdaq, 2,195 stocks rose and 2,103 fell as advancing

issues outnumbered decliners by a 1.04-to-1 ratio. The S&P 500

posted 28 new 52-week highs and six new lows while the Nasdaq

Composite recorded 63 new highs and 105 new lows.