By Sinéad Carew and Johann M Cherian
(Reuters) -Wall Street’s main indexes fell on Friday as investors digested a mixed bag of economic data, while Boeing (NYSE:) dipped after warning of a bigger-than-expected quarterly loss.
The housing market data was hotter than expected, while an S&P Global survey showed business activity slowing to a ninth-month low in January as prices rose. However, firms reported increased hiring, supporting the Federal Reserve’s cautious approach to monetary policy this year.
The University of Michigan’s final estimate on consumer sentiment dropped to 71.1 from a previous estimate of 73.2.
At the end of a relatively light week for data, traders were betting the Fed would keep borrowing costs unchanged at its Jan. 28-29 meeting and expect its first rate cut in June, the latest data from CME Group’s (NASDAQ:) FedWatch tool showed.
“It really boils down to some mixed economics and earnings news,” said Scott Helfstein, head of investment strategy at ETF company Global X.
Investors are bracing for next week’s slew of key inflation and economic growth data as well as the Fed meeting, while waiting for policy updates from the Trump administration.
“There is anticipation of a really big news week ahead. And there is lingering policy uncertainty with the new administration’s first week on the job, which is likely to persist for the next few weeks,” he said.
Investors worry that U.S. President Donald Trump’s proposed tariffs could exacerbate inflationary pressures and slow Fed rate cuts, after he referred to trade policy multiple times this week without providing concrete details of his plans.
Trump has said tariffs on Mexico, Canada, China and the European Union could be announced on Feb. 1, but analysts say major plans could be announced on April 1.
The benchmark ended Thursday at a record high for the first time since early December after Trump called for taxes, oil prices and interest rates to be lowered during his first international appearance this term at the World Economic Forum in Davos, Switzerland.
At 2:34 p.m. ET, the fell 168.44 points, or 0.38%, to 44,396.63. The S&P 500 lost 24.38 points, or 0.40%, at 6,094.33 and the dropped 131.66 points, or 0.66%, to 19,922.02.
Still, on a weekly basis, the indexes were set for their second straight week of advances.
Six of the 11 S&P 500 industry sectors rose, with utilities up 1.05% and leading gains. The sector’s biggest advancer, NextEra Energy Inc (NYSE:), rose about 6%, the S&P 500’s biggest gainer on the day.
Tech was the biggest sector loser, down 1.33%, led by Texas Instruments (NASDAQ:) Inc, which fell 7.1%.
On the earnings front, American Express (NYSE:) reported a 12% jump in fourth-quarter profit. Its shares, however, fell 2.6% and weighed on the blue-chip Dow.
Also dragging on the Dow was Boeing , which fell 1.4% after the planemaker warned of a fourth-quarter loss of about $4 billion. Boeing, whose shares in 2024 logged their steepest annual drop since the pandemic, is scheduled to report results on Tuesday.
Verizon (NYSE:) rose 1.4% after the cellphone service provider reported higher-than-expected quarterly subscriber additions.
Advancing issues outnumbered decliners by a 1.56-to-1 ratio on the NYSE where there were 219 new highs and 31 new lows.
On the Nasdaq, 2,319 stocks rose and 2,010 fell as advancers outnumbered decliners by a 1.15-to-1 ratio. The S&P 500 posted 19 new 52-week highs and two new lows while the Nasdaq Composite recorded 71 new highs and 55 new lows.
