Stocks were mixed Thursday as market participants digested another large batch of corporate earnings. The S&P 500 Index and Nasdaq Composite each moved about 0.4% and 0.5% higher, respectively, while the Dow Jones Industrial Average lost over 100 points as disappointing earnings from Honeywell pulled the major index lower.
Here's how the market settled on Thursday:
S&P 500 Index (SPY ): +0.36% or +22.09 points to 6,083.57
Dow Jones Industrial Average (DIA ): -0.28% or -125.65 points to 44,747.63
Nasdaq Composite Index (QQQ ): +0.51% or +99.66 points to 19,791.99
Honeywell International (HON ) on Thursday announced it will split into three independent companies in addition to its mixed fourth-quarter results, becoming the latest conglomerate to plan a strategic break-up. Dow component plans to separate its aerospace division from its automation business, expected to be completed by the second half of 2026, and then would follow by spinning off its advanced-materials unit.
"The formation of three independent, industry-leading companies builds on the powerful foundation we have created, positioning each to pursue tailored growth strategies, and unlock significant value for shareholders and customers," CEO Vimal Kapur said in a statement.
On the Earnings Front:
Peloton Interactive (PTON ) shares jumped higher Thursday after the fitness equipment reported better-than-expected revenue for its fiscal second-quarter and raised its full-year outlook. The company expects adjusted EBITDA for its full year to come in between $300 million and $350 million, up from its prior guidance range of $240 million to $290 million. Peloton also anticipates to garner at least $200 million in full-year free cash flow, up from its previous outlook of $125 million.
The company also cut costs in three key areas -- marketing, administrative, and research and development -- during the quarter to better support its balance sheet.
"While we are working on our long-term growth strategy for fiscal 26 and beyond, our financial goals for fiscal 25 and continued discipline toward improving gross margins, reducing operating costs and deleveraging our balance sheets and will remain top priorities," CEO Peter Stern told analysts during the company's earnings call.
Eli Lilly (LLY ) reported mixed fourth-quarter earnings on Thursday, with sales results disappointed analysts even as demand for its weight loss drug Zepbound and diabetes drug Mounjaro rose -- both products have underperformed expectations for two straight quarters. The pharmaceutical giant also issued in-line profit guidance for fiscal 2025, with a range of $22.05 to $23.55 per share. Eli Lilly reiterated its full-year sales guidance of $58 billion to $61 billion, noting that it expects to release Mounjaro in new international markets this year.
CFO Lucas Montarce told analysts during the company's earnings call that the company expects to see "a continuation of basically the total prescription growth that we have seen in 2024," for its weight loss and diabetes injectables, "so that's what we built in our 2023 guidance for the market."
Ford Motor (F ) topped expectations in its fourth quarter, but issued a light outlook as the automaker works to improve vehicle quality and costs. For its full year, Ford expects adjusted earnings before interest and taxes of $7 billion to $8.5 billion, adjusted free cash flow of $3.5 billion to $4.5 billion; and capital expenditures in the range of $8 billion and $9 billion -- this outlook "presumes headwinds related to market factors," according to Ford.
"Given the pause in the current tariff situation, specifically in Mexico and Canada, we are not choosing to take any actions at this time," CFO Sherry House told analysts during the company's earnings call. "We're going to let this run itself out so we can better understand the potential impacts on our business."
Qualcomm (QCOM ) reported better-than-expected fiscal first-quarter earnings late Wednesday and offered strong forward guidance as all three of the company's end markets for its chips rose during the quarter. For its current quarter, Qualcomm expects revenue between $10.2 billion and $11 billion, with adjusted earnings in the range of $2.70 to $2.90 per share.
CEO Cristiano Amon said on a call with analysts that the company believes the recent release of the DeepSeek R1 AI model will benefit Qualcomm, as its chips run better models locally instead of in the cloud.
"DeepSeek R1 and other similar models recently demonstrated that AI models are developing faster, becoming smaller, more capable and efficient, and now able to run directly on device," Amon said.
