LIVE MARKETS-US stocks slip as traders gauge earnings, data, Trump policies

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U.S. STOCKS SLIP AS TRADERS GAUGE EARNINGS, DATA, TRUMP POLICIES

U.S. stocks fell on Thursday as traders gauged corporate earnings and economic data for clues on Federal Reserve interest rate policy, before President elect-Donald Trump is due to take office next week.

Morgan Stanley MS.N advanced 4% after the lender said earnings increased in the fourth quarter, propelled by a wave of dealmaking. Bank of America BAC.N lost 1%. It beat profit expectations and predicted higher interest income in 2025.

Data on Thursday showed that U.S. retail sales increased in December as households bought motor vehicles and a range of other goods, pointing to strong demand in the economy.

But traders are wary of Trump’s plans to enact tariffs on Mexico and Canada, and increase them on China, which some analysts say could spur higher inflation and slow growth longer-term.

Trump's policies will help bring inflation back down and allow workers' wages to rise, Scott Bessent, Trump's choice to head the Treasury Department, said on Thursday.

December's consumer price report on Wednesday eased fears about inflation re-accelerating, sending stock markets broadly higher.

Bessent also said that the dollar should remain the world's reserve currency, the Federal Reserve should stay independent, and that he is ready to impose tougher sanctions on Russia's oil sector.

The Dow Jones Industrial Average .DJI dipped 0.16%, the S&P 500 .SPX fell 0.21% and the Nasdaq Composite .IXIC declined 0.89%.

Utilities .SPLRCU was the best performing S&P 500 subsector, while information technology .SPLRCT posted the largest loss.

Here is Thursday's closing market snapshot:

(Karen Brettell)

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