BUSINESS US stocks open mixed amid upbeat corporate earnings, concerns over global trade

BUSINESS

US stocks open mixed amid upbeat corporate earnings, concerns over global trade

Xinhua

23:53, January 24, 2019

NEW YORK, Jan. 24 (Xinhua) -- US stocks opened mixed on Thursday, as the market grew more anxious about global trade tensions, but is backed by better-than-expected airlines corporate performance last year.

Shortly after the opening bell, the Dow Jones Industrial Average fell 43.97 points, or 0.18 percent, to 24,579.96. The S&P 500 rose 1.05 points, or 0.04 percent, to 2,638.84. The Nasdaq Composite Index bounced 37.24 points, or 0.53 percent, to 7,042.25.

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(File photo: VCG)

Shares of American Airlines rallied nearly 6 percent at the start of the trading day, after it reported stronger-than-expected revenues for the fourth quarter of 2018. Likewise, shares of Southwest Airlines rose nearly 5 percent as its quarterly revenues beat analysts' estimates.

Shares of Jetblue Airlines also went up more than 2 percent after its adjusted earnings per share, a key indicator of a company's profitability, came out slightly higher than market expectations.

Notably, shares of US semiconductor firm Xilinx surged nearly 15 percent, after its quarterly profits exceeded Wall Street estimates and its vigorous revenue guidance for the current quarter built up market confidence in the company.

Seven of the 11 primary S&P 500 extended losses on Thursday, with the consumer staples sector down over 1 percent, leading the laggards.

Market unease over global trade tensions has been exacerbated, after US Commerce Wilbur Ross told CNBC on Thursday the United States is still "miles and miles" from a trade deal with China.

Previously on Monday, the International Monetary Fund rattled investors with a trimmed economic outlook for 2019, undermining positive sentiments driven by a batch of strong corporate performance last year.

The IMF projected on Monday global growth at 3.5 percent in 2019 and 3.6 percent in 2020, 0.2 and 0.1 percentage point below last October's projections.

Although calling the downward revisions "modest," the IMF said the risks to more significant downward corrections are rising amid global trade tensions and tightening financial conditions, according to its latest World Economic Outlook report.  

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