US open: Stocks slip after Fed pause, mixed tech results

(Sharecast News) - Major indices were in the red early on Thursday after the Federal Reserve held interest rates steady and multiple big-name tech firms reported earnings overnight.

As of 1515 GMT, the Dow Jones Industrial Average was down 0.16% at 48,935.37, while the S&P 500 shed 0.75% at 6,925.49 and the Nasdaq Composite came out of the gate 1.63% weaker at 23,467.90.

The Dow opened 80.23 points lower on Thursday, erasing modest gains recorded in the previous session.

Tech earnings were in focus at the open after social media giant Meta delivered a strongerthanexpected fourth quarter performance on Wednesday, on the back of a solid performance by its advertising business, while electric carmaker Tesla posted slightly betterthanexpected fourthquarter results, even as fullyear revenue slipped 3% - the first annual decline on record.

Software giant Microsoft, on the other hand, traded roughly 11% lower in early action despite topping quarterly expectations, after it reported a slight slowdown in cloud growth.

In terms of Thursday's earnings reports, trade bellwether Caterpillar posted increased quarterly profit and revenues, driven by AI-fueled power equipment demand, but flagged a $2.6bn tariff hit for 2026, while Comcast said its Q4 results had been hit by continued broadband customer losses, a softer film slate at Universal and wider losses at its Peacock streaming platform, reporting a steep drop in net income from $4.78bn to $2.17bn.

Mastercard said net revenues came to $8.8bn in Q4, up 18% year-on-year, while diluted earnings per share grew 24% to $4.52 each, topping estimates of $4.25 per share, as consumers continued to turn to its products, and Lockheed Martin issued FY26 profit and revenue guidance above Wall Street expectations, citing continued demand for its fighter jets and weapons systems amid ongoing conflicts in the Middle East and a protracted Russia-Ukraine, as well as further heightened geopolitical tensions following the capture of the Venezuelan president by the Trump administration.

Still to come, Apple and Visa will report after the close.

The Federal Reserve was also in focus after the central bank left interest rates unchanged on Wednesday, holding its benchmark range at 3.5%-3.75% after three cuts late last year, as policymakers waited for clearer evidence on how earlier easing is feeding through to the economy.

Officials have signalled they want more time to assess the impact of those reductions and indicated policy would only be loosened once price pressures begin to ease. "Uncertainty about the economic outlook remains elevated," the Fed said, adding that the committee remained alert to risks on both sides of its mandate.

The decision came as the central bank faces heightened scrutiny over its independence, with the Supreme Court reviewing a case that could have major implications for its authority. Chairman Jerome Powell earlier this month publicly pushed back against pressure from the Trump administration and reiterated a strong defence of Fed independence in his post-meeting presser, describing it as essential to preventing political influence over monetary policy and warning that its erosion would be difficult to reverse.

Spot gold was also drawing an amount of investor attention after surpassing the $5,500 mark in overnight trading as the US dollar index continued to slide, down 0.29% at 96.17 early on Thursday after sinking to its lowest level in four years on Wednesday.

Donald Trump played down the recent weakness in the US dollar during a visit to Iowa, telling reporters he viewed the currency's slide positively as he pointed to what he described as strong underlying economic activity.

The softer USD has also helped push several major currencies to multiyear highs, with the Swiss franc climbing to its strongest level against the greenback in more than a decade, while the euro also strengthened, rising to $1.20 and marking its biggest weekly advance since last spring.

On Thursday's macro slate, Americans lined up for unemployment benefits at a decelerated pace in the week ended 24 January, according to the Labor Department. Initial jobless claims fell to 209,000, dropping by 1,000 from the prior week's upwardly revised reading, while continuing claims decreased by 38,000 to 1.82m. However, the four-week moving average, which aims to strip out week-to-week volatility, increased by 2,250 to 206,250.

Elsewhere, the US trade deficit widened sharply in November, according to the Bureau of Economic Analysis, jumping to $56.8bn from October's unusually low $29.2bn reading and coming in well above forecasts of $40.5bn. November's increase was primarily driven by a 5% rise in imports to $348.9bn, led by a rebound in pharmaceutical products and higher spending on computers and semiconductors, while exports fell 3.6% to $292.1bn, weighed down by declines in nonmonetary gold, pharmaceuticals and crude oil.

On another note, nonfarm labour productivity rose 4.9% in Q3, according to the Bureau of Labor Statistics, matching earlier estimates and marking the strongest increase in two years. The gain reflected a 5.4% jump in output and a modest 0.5% rise in hours worked. Manufacturing productivity was also revised higher to a 3.7% increase, with output up 3% and hours worked down 0.7%. On an annualised basis, nonfarm productivity was up 1.9%.

Still on data, factory orders rose 2.7% to $621.6bn in November, according to the Census Bureau, following October's 1.2% decrease. Shipments, down three of the last four months, decreased 0.1%, while unfilled orders increased 1.4% and inventories ticked up 0.1% month-on-month.

Finally, wholesale inventories increased by 0.20% to $915bn in November, according to the Census Bureau.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Amgen Inc. (AMGN) $342.85 0.18%

Apple Inc. (AAPL) $256.56 0.05%

Dow Jones - Fallers

Microsoft Corp. (MSFT) $428.08 -11.12%

Intel Corp. (INTC) $48.13 -1.34%

Cisco Systems Inc. (CSCO) $78.71 -0.32%

S&P 500 - Risers

Meta Platforms Inc. (META) $719.35 7.57%

CH Robinson Worldwide Inc (CHRW) $192.79 4.62%

Apache Corp. (APA) $27.17 4.46%

Lam Research Corp. (LRCX) $248.08 3.55%

Diamondback Energy Inc. (FANG) $165.75 3.42%

KLA-Tencor Corp. (KLAC) $1,667.92 2.50%

Expedia Group Inc. (EXPE) $271.76 2.26%

Comcast Corp. (CMCSA) $28.88 1.64%

Nasdaq Inc (NDAQ) $100.25 1.56%

Advanced Micro Devices Inc. (AMD) $256.49 1.49%

S&P 500 - Fallers

Microsoft Corp. (MSFT) $432.18 -10.27%

Intuit Inc. (INTU) $504.17 -6.41%

Autodesk Inc. (ADSK) $251.23 -6.37%

Tractor Supply Company (TSCO) $52.83 -4.18%

Cadence Design Systems Inc. (CDNS) $307.15 -4.16%

F5 Inc. (FFIV) $283.46 -3.02%

Synopsys Inc. (SNPS) $496.19 -2.96%

Wynn Resorts Ltd. (WYNN) $109.96 -2.59%

Gen Digital Inc. (GEN) $24.32 -1.90%

Akamai Technologies Inc. (AKAM) $100.19 -1.87%

Nasdaq 100 - Risers

Meta Platforms Inc. (META) $719.35 7.57%

Lam Research Corp. (LRCX) $248.08 3.55%

KLA-Tencor Corp. (KLAC) $1,667.92 2.50%

Expedia Group Inc. (EXPE) $271.76 2.26%

Qvc Group Inc Series A (QVCGA) $10.43 2.05%

Liberty Global plc Series A (LBTYA) $10.93 1.96%

Liberty Global plc Series C (LBTYK) $10.94 1.86%

Comcast Corp. (CMCSA) $28.88 1.64%

Asml Holdings N.V. (ASML) $1,444.74 1.53%

Vodafone Group Plc ADS (VOD) $14.74 1.20%

Nasdaq 100 - Fallers

Microsoft Corp. (MSFT) $432.18 -10.27%

Workday, Inc. (WDAY) $172.17 -8.96%

Intuit Inc. (INTU) $504.17 -6.41%

Autodesk Inc. (ADSK) $251.23 -6.37%

Cadence Design Systems Inc. (CDNS) $307.15 -4.16%

Synopsys Inc. (SNPS) $496.19 -2.96%

Wynn Resorts Ltd. (WYNN) $109.96 -2.59%

Check Point Software Technologies Ltd. (CHKP) $176.18 -2.25%

Gen Digital Inc. (GEN) $24.32 -1.90%

DENTSPLY Sirona Inc. (XRAY) $12.09 -1.79%