Wall Street Gains as Fashion, Tobacco Stocks Offset Qualcomm, Ford Losses

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Wall Street Gains as Fashion, Tobacco Stocks Offset Qualcomm, Ford Losses/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street saw mixed trading on Thursday, with fashion and tobacco stocks rising while Ford and Qualcomm lagged behind. The S&P 500 gained 0.2%, buoyed by strong earnings from Tapestry, Ralph Lauren, and Philip Morris. However, Ford and Qualcomm fell over 4% each, as investors reacted to their 2025 financial forecasts. Meanwhile, global markets saw gains, with London’s FTSE 100 jumping 1.5% after a Bank of England rate cut.

Traders work on the floor at the New York Stock Exchange in New York’s Financial District Thursday, Jan. 2, 2025. (AP Photo/Seth Wenig)

Stock Market Update: Quick Look

S&P 500 up 0.2%, Dow Jones up 36 points, Nasdaq up 0.1%.
Tapestry (Coach, Kate Spade) jumps 18.6% after strong earnings.
Ralph Lauren surges 15.7%, led by growth in China.
Philip Morris rises 8% on robust sales and nicotine pouch demand.
Ford (-4.9%) and Qualcomm (-4.8%) drop despite meeting profit targets.
Honeywell (-4.6%) to split into three independent companies by 2026.
Bond yields tick up, with 10-year Treasury rising to 4.44%.
Global markets rally, led by London (+1.5%) after interest rate cuts.

Wall Street Gains as Fashion and Tobacco Stocks Offset Ford, Qualcomm Losses

Fashion and Retail Stocks Drive Market Gains

Retail brands led Thursday’s market, with Tapestry (Coach, Kate Spade) jumping 18.6% after reporting better-than-expected earnings and a surge in young customers. The company also raised its full-year revenue forecast, signaling confidence in consumer demand.

Ralph Lauren surged 15.7%, fueled by strong sales in China after opening new stores in Hong Kong and Beijing during the holiday quarter.

Philip Morris rose 8%, bolstered by strong global demand for Marlboro cigarettes and Zyn nicotine pouches. The company exceeded earnings expectations and issued optimistic financial guidance for 2025.

Ford and Qualcomm Struggle Despite Solid Reports

While Ford reported higher-than-expected earnings, its stock fell 4.9% as investors focused on weak 2025 projections.

The company warned of economic “headwinds” that could impact cash flow.
CEO Jim Farley expressed concerns over potential tariffs from President Trump, noting that a prolonged trade war could drive up prices, cut jobs, and cost automakers billions.

Meanwhile, Qualcomm dropped 4.8%, despite exceeding earnings expectations.

Analysts praised the company’s performance, but concerns over weakness in the wireless chip industry led to a sell-off.

Honeywell Announces Three-Way Split

Honeywell (-4.6%) revealed plans to break into three separate companies by late 2026, following a strategy used by General Electric. The North Carolina-based conglomerate will spin off its automation and aerospace divisions, aiming for more focused operations.

Treasury Yields Edge Higher, Economic Data in Focus

The 10-year Treasury yield rose to 4.44%, signaling investor caution ahead of Friday’s U.S. jobs report.

Jobless claims rose slightly, but remain historically low.
Friday’s employment data will provide a clearer picture of job market strength and potential Federal Reserve policy changes.

Global Markets Rally on Bank of England Rate Cut

International markets saw gains, led by London’s FTSE 100 (+1.5%), following the Bank of England’s decision to cut interest rates.

The UK central bank slashed its 2025 GDP growth forecast to 0.75%, reflecting economic stagnation.
Paris (+1.2%) and Hong Kong (+1.4%) also saw gains, while Tokyo rose 0.6%.

In Japan, Honda and Nissan shares climbed as reports emerged that the two automakers abandoned plans for a joint holding company. An official update is expected by mid-February.

Trump’s Tariff Uncertainty Weighs on Markets

Investor fears of a global trade war eased slightly, after Trump announced a 30-day delay on tariffs for Mexico and Canada.

While markets reacted positively, analysts remain cautious about long-term trade policy.
Ford’s CEO warned that prolonged tariffs could severely hurt automakers, leading to higher vehicle prices and lost jobs.

Looking Ahead: Key Economic Reports and Market Movers

Friday’s U.S. jobs report will reveal January’s hiring trends.
Earnings season continues, with upcoming reports from tech and consumer giants.
Federal Reserve officials will weigh inflation data before deciding on further interest rate cuts.

As global markets adjust to economic uncertainty and shifting trade policies, investors will closely monitor corporate earnings and central bank decisions.