U.S. stocks ended lower on Friday, with indexes losing ground after the White House said U.S. President Donald Trump will implement on Saturday tariffs of 25% on Canadian and Mexican imports and 10% on Chinese goods.
Market Snapshot
The Dow Jones Industrial Average fell 337.47 points, or 0.75%, to 44,544.66, the S&P 500 lost 30.64 points, or 0.50%, to 6,040.53 and the Nasdaq Composite lost 54.31 points, or 0.28%, to 19,627.44. Tesla Motors up 1.1%.
Market Movers
Apple reported better-than-expected fiscal first-quarter earnings of $2.40 a share, but said iPhone sales fell nearly 1% from a year earlier to $69.1 billion, below analysts' estimates of $70.7 billion. Total revenue rose 4% to $124.3 billion, and matched estimates. Services revenue rose 14% and set a record high of $26.34 billion in the first quarter. The company said second-quarter revenue was expected to grow by "low-to-mid single digits," largely in line with Wall Street expectations. After trading higher for much of the session, Apple shares finished down 0.7%.
Intel's fourth-quarter revenue fell 7% from a year earlier to $14.3 billion but was better than analysts' estimates of $13.8 billion. The chip maker reported adjusted earnings in the period of 13 cents a share, 1 cent above forecasts. The company projected revenue in the first quarter of $11.7 billion to $12.7 billion, below expectations of $12.9 billion, and said adjusted earnings in the quarter would be breakeven compared with estimates for earnings of 9 cents. Intel said it first-quarter outlook reflected macro uncertainties. The stock closed down 2.9%.
Quantum computing shares gained on Friday. Rigetti Computing up 7%; D-Wave Quantum Inc. up 5.3%; Quantum Computing Inc. up 4%; IONQ Inc. up 2%.
Visa posted fiscal first-quarter adjusted earnings of $2.75 a share, topping Wall Street forecasts of $2.66 a share, as revenue rose 10% to $9.51 billion and beat expectations. Payments volume -- purchases made on Visa-branded cards across networks -- rose 9% from a year earlier. The stock fell 0.4%. Rival Mastercard dropped 1.9%, after closing Thursday with a gain of 3.1% following fourth-quarter earnings and revenue that topped analysts' estimates on strong growth at the company's payments network.
Walgreens Boots Alliance fell 10% after the pharmacy chain suspended quarterly dividends, saying "as "management continues to evaluate and refine its capital allocation policy consistent with the company's broader long-term turnaround efforts."
Deckers Outdoor, the maker of Hoka sneakers and Ugg boots, reported fiscal third-quarter earnings of $456.7 million, or $3 a share, up from $389.9 million, or $2.52, a year earlier. Sales jumped 17% to $1.83 billion and beat estimates. Selling and general expenses, however jumped to $535.4 million from $428.7 million. The company raised its fiscal 2025 sales outlook following strong growth at Hoka and Ugg but the company's estimate for sales of $4.9 billion was short of consensus of $4.93 billion. The stock tumbled 20%.
AbbVie jumped 4.7% after the drug company's fourth-quarter earnings and revenue topped analysts' estimates. "We are entering 2025 with significant momentum and expect net revenue to exceed their previous peak in just the second full year following the U.S. Humira loss of exclusivity," said CEO Rob Michael. Humira is the company's blockbuster autoimmune drug, which lost its market exclusivity in 2023.
Atlassian Corporation PLC reported fiscal-second-quarter earnings that topped Wall Street estimates as revenue rose 21% to $1.29 billion. Revenue guidance for the third quarter also was better than forecasts. "By infusing (artificial intelligence) throughout our world-class cloud platform, we're empowering all teams to accelerate collaboration and unlock organizational knowledge, further enabling them to unleash their full potential," said CEO Mike Cannon-Brookes. Shares of the maker of productivity software jumped 15%.
Market News
Trump Vows Tariffs to Hit Saturday With More in Coming Months
President Donald Trump said he would impose tariffs on a wide range of imports, including oil and metals, in the coming months, expanding his plans to enact sweeping trade levies well beyond those set to hit China, Canada and Mexico on Saturday.
“We’ll be doing pharmaceuticals and drugs, medicines, etc, all forms of medicine and pharmaceuticals. And we’ll be doing very importantly steel and we’ll also be doing chips and things associated with chips,” Trump said Friday from the Oval Office where he was signing an executive order on deregulation.
“We’re going to put tariffs on chips. We’re going to put tariffs on oil and gas. That will happen very soon, I think about the 18th of February. And we’re going to put a lot of tariffs on steel,” he added.
Nvidia CEO Huang Meets Trump at White House on Friday
President Donald Trump met Friday with Nvidia Corp. Chief Executive Officer Jensen Huang at the White House as the US prepares tariffs on semiconductors, weighs the fate of a chip subsidy program and probes whether Chinese AI startup DeepSeek skirted export controls to obtain the company’s products.
Chip tariffs would weigh heavily on Nvidia, which relies on overseas partners to manufacture its semiconductors. Trump told reporters he’d had a good meeting with Huang, but insisted “eventually we’re going to put tariffs on chips.”
In response to a question about the potential for more restrictions on chip exports to China, the president said he will move forward with tariffs. Current limitations on shipping to China take the form of license requirements administered by the Department of Commerce.
An Nvidia spokesperson said Huang “appreciated the opportunity to meet with President Trump and discuss semiconductors and AI policy.” The two talked about “the importance of strengthening US technology and AI leadership,” the spokesperson said.
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