US Equity Indexes Close Mixed This Week as Value Investing Style Takes Leadership From Technology

MT Newswires Live
02/07

US equity indexes were mixed this week, with the Dow Jones Industrial Average surpassing the 50,000 mark for the first time, as leadership broadened to old economy and value-oriented sectors while artificial intelligence proved be a foe rather than a friend for certain tech-driven areas.

* The S&P 500 closed at 6,932.30 on Friday versus 6,939.03 a week ago. The Nasdaq Composite stood at 23,031.21 compared with 23,461.82 a week earlier. The Dow Jones Industrial Average ended at 50,115.67, versus 48,892.47 at the end of last week.

* Energy, consumer defensive, and basic materials were the top three sectors this week, as well as over one month and one quarter, reflecting a broadening of market leadership. Technology, communication services, and consumer cyclicals were the steepest decliners.

* Amazon.com (AMZN) reported a Q4 earnings miss, while its capital expenditure guidance of $200 billion beat the $145 billion consensus.

* Alphabet (GOOG, GOOGL) reported higher Q4 earnings and revenue, but said it expects to incur this year capital expenditure of as much as $185 billion, which, according to a Deutsche Bank note, is 55% above market expectations.

* Investors trimmed exposure to big tech in favor of names such as Walmart (WMT) amid concern that artificial intelligence will disrupt jobs due in part to a new legal tool -- Claude -- announced by Anthropic. Software stocks remained under pressure after Anthropic also unveiled a new financial research-focused model.

* In economic news, the Institute for Supply Management's US manufacturing index rose to 52.6 in January from 47.9 in December, versus expectations for a 48.5 print in a Bloomberg-compiled poll.

* In January, 108,435 layoff plans were disclosed, more than triple the tally in December and up 118% year over year, Challenger Gray & Christmas said. Job openings fell in December, according to the Bureau of Labor Statistics, below forecast and down from a month ago.

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