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

MT Newswires Live
8 hours ago

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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