All three U.S. stock indexes closed lower on Friday after President Donald Trump's reciprocal tariff announcement followed weak jobs and consumer sentiment data.
Market Snapshot
The S&P 500 .SPX lost 57.63 points, or 0.95%, to end at 6,025.94 points, while the Nasdaq Composite .IXIC lost 267.52 points, or 1.35%, to 19,524.47. The Dow Jones Industrial Average .DJI fell 441.28 points, or 0.99%, to 44,306.35.
Market Movers
Amazon.com fell 4.1% after the tech and online retailing giant said it expected first-quarter revenue of $151 billion to $155.5 billion, below analysts' expectations of $158.6 billion. Amazon said the guidance "anticipates an unusually large, unfavorable impact" of about $2.1 billion from foreign exchange rates. The company also said it expects first-quarter operating income of $14 billion to $18 billion, missing projections of $18.3 billion. Capital expenditures in 2025 were forecast at around $105 billion, driven by its artificial-intelligence data center buildout. For the fourth quarter, Amazon's cloud unit, AWS, posted revenue growth of 19% to $28.8 billion compared with expectations of $28.9 billion.
Tesla dropped 3.4%. The electric-vehicle maker sold 63,238 units in January, down 11.5% from a year earlier, according to data from the China Passenger Car Association. Coming into Friday, the stock has fallen 7.3% this year.
Uber Technologies jumped 6.6% after Bill Ackman disclosed on X that his hedge fund Pershing Square had built a position in the ride-hailing company and now holds 30.3 million shares, a stake valued at more than $2 billion.
Affirm, the "buy now, pay later" company, soared 22% after it reported fiscal second-quarter adjusted earnings of 23 cents a share, beating analysts' estimates that called for a loss of 16 cents. Revenue of $866 million also topped consensus of $807 million. Gross merchandise volume -- which measures transactions on Affirm's platform -- was $10.1 billion, higher than analysts' forecast of $9.64 billion. The company anticipates fiscal 2025 GMV of between $34.74 billion and $35.34 billion, compared with analysts' estimates of $34.95 billion.
Expedia reported fourth-quarter adjusted earnings that beat analysts' estimates and shares of the online travel agency rose 17%. The company said bookings rose in all three of its core consumer brands. Total gross bookings were up 13% in the quarter.
Bill Holdings sank 36% after issuing fiscal third-quarter revenue guidance that missed Wall Street estimates. The billing software company expects revenue in the period of between $352.5 million and $357.5 million, below expectations of $360.4 million.
Cloudflare reported fourth-quarter earnings and revenue that beat Wall Street forecasts and issued 2025 revenue guidance of $2.09 billion that met expectations. The cloud computing company stock jumped 18% higher.
Videogame developer Take-Two Interactive Software rose 14% after reporting a narrower-than-expected fiscal third-quarter loss and reiterating it expects its fiscal-year revenue of between $5.57 billion and $5.67 billion. "We're really excited about what's in market now and what we believe will be coming in the rest of the calendar year and beyond," CEO Strauss Zelnick told Barron's said in an interview.
Pinterest jumped 19% higher after the photo-sharing platform posted better-than-anticipated fourth-quarter revenue of $1.15 billion, its first billion-dollar revenue quarter, and said global monthly active users rose by 11% from a year earlier to 553 million. The company also said it expects first-quarter revenue between $837 million and $852 million, up 13% to 15% year over year.
Doximity soared 36%. The maker of software for medical professionals posted fiscal third-quarter earnings that topped analysts' estimates and raised its fiscal-year outlook. The company said it expects adjusted earnings before interest, taxes, depreciation and amortization of $306.6 million to $307.6 million, better than analysts' estimates of $279.6 million.
E.l.f. Beauty tumbled 20% after the cosmetics company reduced its fiscal-year forecast for sales and adjusted earnings, citing "softer than expected trends in January."
Neurocrine Biosciences, the biopharmaceutical company, fell 19% after its forecast for Ingrezza sales of $2.5 billion to $2.6 billion for 2025 missed analysts' expectations of $2.67 billion. Ingrezza is the company's movement disorder drug, which had 2024 sales of $2.3 billion.
Market News
Trump says he will announce reciprocal tariffs on many countries next week
President Donald Trump said on Friday he plans to announce reciprocal tariffs on many countries next week, a major escalation of his trade war.
Trump did not identify which countries would be hit but suggested it would be a broad effort that could also help solve U.S. budget problems.
"I'll be announcing that, next week, reciprocal trade, so that we're treated evenly with other countries," Trump said. "We don't want any more, any less."
Trump says Nippon Steel will invest in US Steel, not buy it, sparking confusion
U.S. President Donald Trump said Nippon Steel's $14.9 billion bid for U.S. Steel would take the form of an investment instead of a purchase on Friday, even as two sources familiar with the matter said the Japanese steel company had not withdrawn its bid.
Nippon's pursuit of U.S. Steel has stretched on for more than a year, with Trump vociferously condemning the proposal on numerous occasions, before Friday's more tempered remarks at the Oval Office with Japanese Prime Minister Shigeru Ishiba at his side.
