Wall Street's main indexes closed lower on Friday as investors stepped back while they digested a mixed bag of economic data and earnings reports and prepared for a week filled with economic releases and a Federal Reserve meeting.
Market Snapshot
The Dow Jones Industrial Average fell 140.82 points, or 0.32%, to 44,424.25, the S&P 500 lost 17.47 points, or 0.29%, to 6,101.24 and the Nasdaq Composite lost 99.38 points, or 0.50%, to 19,954.30.
Market Movers
Tesla - Tesla fell 1.4%. The electric-vehicle maker said it will begin delivering in March a revamped version of the Tesla Model Y. The Model Y Juniperwill cost $59,990—about 25% more than the previous version—and will feature Tesla’s full self-driving software. The care also will have a longer range of 320 miles.
Texas Instruments - Texas Instruments dropped 7.5% after the chip company reported fourth-quarter earnings and revenue that beat analysts’ estimates but issuedweak profit guidancefor the current first quarter. Texas Instruments said it expects earnings of between 94 cents and $1.16 a share in the first quarter, below Wall Street expectations of $1.17. The company anticipates revenue in the period between $3.74 billion and $4.06 billion, compared with forecasts of $3.85 billion. The company said on a conference call that the auto end market in Europe, U.S., and Japan continued to be weak.
Nvidia, TSMC, Intel, Broadcom - Other stocks in the semiconductor space were mixed. Nvidia declined 3% and TSMC fell 1.2%, Intel slid 3.4%, while Broadcom rose 1.8%.
Chinese ADRs - Chinese ADRs jumped on Friday, amid signs that President Donald Trump is dialing back threats of slapping higher tariffs on exports there. PDD Holdings rose 7.1%, JD.com rose 5.2%, Baidu rose 4.6%, NIO rose 3.9%, Alibaba rose 3.5%.
Meta Platforms - Meta Platforms, the parent company of Facebook and Instagram, said itplans to invest up to $65 billion in 2025to build out its artificial-intelligence infrastructure. The plan is about $14 billion higher than analysts’ projections. Shares rose 1.7%.
Twilio - Twilio jumped 20.1% after the maker of communications tools for businesses said it achieved positive operating income on a GAAP basis for the fourth quarter, a first for the company, on revenue growth of about 11%. The company also issued an upbeat long-term profit forecast and said it its board approved a new $2 billion stock buyback program.
Novo Nordisk - Novo Nordisk stock rallied 8.5% in the U.S. after the Danish drug company announced data for anew weight-loss drugthat appeared to be more efficient than its blockbuster Ozempic and Wegovy drugs currently on the market.
Boeing - Boeing sank 1.4% after the aerospace giant said it expects afourth-quarter lossof $5.46 a share, wider than analysts’ estimates that called for a loss of $1.55, stemming primarily from a two-month labor strike and costs from job cuts announced last year. The company said it expects revenue of $15.2 billion, below expectations of $16.6 billion and down from $22 billion a year earlier. Boeing is scheduled to report quarterly earnings next Tuesday.
Intuitive Surgical - Intuitive Surgical, the medical technology company known for its minimally invasive da Vinci surgical system, fell 4% after posting fourth-quarter adjusted earnings of $2.21 a share, better than analysts’ estimates of $1.79, as revenue jumped 25% to $2.41 billion and also beat forecasts. The company said da Vinci procedures rose 18% in the quarter from a year earlier though it added it expects worldwide da Vinci procedures to rise between 13% and 16% in 2025, below the 17% increase in 2024.
CSX Corp, Union Pacific - CSX was down 2.9%. The railroad company’s fourth-quarter adjusted earnings matched Wall Street forecasts but revenue dropped 4% to $3.54 billion and was below expectations of $3.58 billion. Fellow railroader Union Pacific closed up 5.2% on Thursday after reportingquarterly earnings that topped Wall Street estimates. Union Pacific stock rose 0.3% Friday.
American Express - American Express was down 1.4% after the credit card company reported fourth-quarter earnings that narrowly topped Wall Street estimates. The company posted total revenue net of interest expense in the period of $17.18 billon, slightly above the consensus estimate of $17.16 billion. Billed business—a metric that represents Amex cardholder spending—increased 8% from a year ago. Amex said it expects 2025 earnings of between $15 and $15.50 a share compared with analysts’ forecasts of $15.24.
Verizon - Verizon Communications rose 0.9% after the telecommunications giant’sfourth-quarter earnings topped expectations as higher prices for its plans helped the company’s wireless service business make more money than a year earlier.
Ericsson - U.S.-listed shares of Ericsson plummeted 14.4% after the Stockholm-based telecommunications company reported fourth-quarter adjusted earnings before interest and taxes of 9.8 billion Swedish kronor, up 33% from a year earlier but below analysts’ forecasts.
NextEra - Clean-energy giant NextEra Energy gained 5.2% to $72.83. The company reported earnings of 53 cents a share for its fourth quarter, in line with analysts’ expectations. Revenue of $5.39 billion missed analysts’ calls for $7.57 billion. However, the company unveiledseveral new initiativesto capitalize on the power demand caused by AI and data centers.
Market News
US Consumer Sentiment Ebbs in January; 12-Month Inflation Expectations Rise
U.S. consumer sentiment weakened in January for the first time in six months amid worries about the labor market and potential higher prices for goods if President Donald Trump's new administration presses ahead with planned tariffs on imports.
The University of Michigan said on Friday that its Consumer Sentiment Index fell to 71.1 this month from a preliminary reading of 73.2 and 74.0 in December. Economists polled by Reuters had expected an unchanged reading. The final survey was closed on Monday, the day when Trump was inaugurated for a second term as president.
The decline in sentiment was broad-based and seen across income, wealth and age groups.
Zuckerberg Says Meta to Spend Up to $65 Billion on AI in ’25
Meta Platforms Inc. plans to invest as much as $65 billion on projects related to artificial intelligence in 2025, including building a giant new data center and increasing hiring in AI teams, Chief Executive Officer Mark Zuckerberg said Friday.
The company intends to use the funds to build a data center “so large that it would cover a significant part of Manhattan,” Zuckerberg said in a Facebook post. Meta plans to bring around a gigawatt of computing power online in 2025 and is projected to end the year with more than 1.3 million graphics processing units, he added.
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