US close: Dow hits new high, but stocks finish mostly lower

(Sharecast News) - US stocks finished mixed on Tuesday, with the Dow hitting new highs but other indices slipping into the red, as investors digested a raft of corporate earnings and economic data, and looked ahead to number of key risk events over the coming days. The Dow inched 0.1% higher to a new record close of 50,188.14, while the S&P 500 and Nasdaq dropped 0.3% and 0.6%, respectively.

Global financial markets were fairly subdued as investors awaited a delayed US jobs report on Wednesday and some crucial inflation data on Friday.

"Tomorrow brings the first major data release of the week, with the belated jobs report providing the basis for a potential dovish shift in sentiment for the Fed," said Joshua Mahony, chief market analyst at Scope Markets.

"Set against a backdrop of strong GDP, the combination of weak jobs and inflation figures could provide a goldilocks scenario where the Fed ease into an environment of strong economic growth."

In economic news, US retail sales were virtually flat in December at $735bn, according to the Census Bureau, missing the 0.5% increase expected by analysts. Total sales for 2025 were up 3.7% from 2024, while total fourth-quarter sales were up 3.0%.

"US 10-year Treasury yields dipped to 4.15%, their lowest level since mid-January, amid the sharp slow down in consumer spending, reinforcing expectations of a June Fed rate cut," said Axel Rudolph, senior technical analyst at IG.

Meanwhile, the National Federation of Independent Business' January small business optimism index fell to 99.3 in January, down from 99.5 in December and short of forecasts for a reading of 99.9. Of the ten components of the index, three increased and seven decreased.

In other news, US import prices increased 0.1% in December, according to the Bureau of Labor Statistics, while export prices advanced 0.3%. Finally, US business inventories increased by 0.1% in November, according to the Census Bureau, short of both consensus estimates of 0.2% and October's 0.3% increase.

Spotify impresses

Shares in Spotify jumped 15% after the music-streaming platform beat its own guidance for subscriber numbers in the fourth quarter, helping the firm to smash profit forecasts. Monthly active users totalled 751m over the final three months of 2025, up 5% over the third quarter and 11% higher year-on-year. The addition of 38m MAUs over the period was a record for a quarter and ahead of the 32m expected by the company.

US toy manufacturer Hasbro also pleased investors after a swing to a profit in the fourth quarter as revenue rose thanks to a standout performance from the Wizards of the Coast and digital gaming segment.

Warner Bros Discovery gained 2% after Paramount improved its $108bn bid for the company, offering a fee to shareholders as compensation if regulators delay completion of the deal. In a regulatory filing on Tuesday, the media company also agreed to cover the $2.8bn breakup fee the HBO owner would owe Netflix if it walked away from their deal.

Profits at Coca-Cola dropped 32% in the fourth quarter, the American beverages giant announced, as margins were hammered by a near-$1bn write-off related to its Bodyarmor brand. The stock ended 2% lower.

Also in the red was Alphabet despite the news that the European Commission has approved Google's $32bn acquisition of cybersecurity firm Wiz, first announced last March.