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Key Takeaways
- The S&P 500 declined by 0.5% on Friday, Jan. 31, as investors digested the White House’s proposed tariffs on Canada, China, and Mexico.
- Deckers Outdoor, the maker of UGG and other footwear brands, led decliners after providing a disappointing outlook that cited challenges from competitors and shipping costs.
- Franklin Templeton parent Franklin Resources was the top performer in the S&P 500. The investment manager’s earnings beat expectations despite disappointing quarterly revenue.
Major U.S. equities indexes moved lower on Friday to close January trading, though stocks pushed higher in the first month of 2025 despite the slow finish.
After starting the trading session on an upward trajectory as inflation data came in as expected, markets turned lower as the White House reiterated its plan for tariffs on Canada, Mexico and China.
The S&P 500 dropped by 0.5%, while the Nasdaq gave up 0.3% to close the week. The Dow Jones Industrial Average declined by 0.8% after moving higher in the prior session.
Franklin Resources (BEN) was the top performer in the S&P 500 as the investment manager surged 10.4%. The company reported earnings that beat analyst projections despite revenue coming up shorter than expected. Strong earnings also sent Eastman Kodak (KODK) spinoff Eastman Chemical (EMN) higher by 7.5%.
AbbVie (ABBV) stock jumped by 4.7% after the pharmaceutical firm beat estimates on strong sales of its Skyrizi and Rinvoq inflammation treatments and raised its long-term sales outlook for the drugs. Vertex Pharmaceuticals (VRTX) moved up by 5.3% after it said that the Food and Drug Administration (FDA) approved its non-opioid pain treatment Journavx.
Deckers Outdoor (DECK), the maker of UGG brand footwear, led the S&P 500 decliners by falling by 20.4% after its full-year revenue guidance raised investor concerns. The company said it would be facing challenges from competitor discounts, high shipping costs, and a strong U.S. dollar.
Walgreens Boots Alliance (WBA) stock moved lower by 10.3% after it suspended its dividend in order to fund a broader long-term turnaround for the company. The country’s largest pharmacy chain said it would need the additional cash for potential litigation costs and debt refinancing needs.
Colgate-Palmolive (CL) shares moved lower by nearly 4.7% after the company cited worsening foreign exchange rates as it missed earnings expectations, with sales declining in Latin America by 7%.
Las Vegas Sands (LVS) dropped by 5% after the casino company gave back gains from the prior session that stemmed from optimism over its potential growth in China.
Following a better-than-expected earnings report, Apple (AAPL) shares gave up early gains as investors digested the proposed tariffs on Chinese imports.
