4:14pm: Netflix, Tesla shares each fall more than 8%
The Dow closed Thursday up 164 points, 0.5%, at 35,225, while the Nasdaq Composite lost 395 points, 2.1%, to 14,063 and the S&P 500 fell 31 points, 0.7%, to 4,535. The small-cap Russell 2000 index declined 18 points, 0.9%, to 1,967.
The DJIA clinched a nine-session winning streak, its longest such run since 2017.
The Nasdaq, dragged by the disappointing earnings of Nasdaq and Tesla, did not fare as well. Shares of Netflix slid more than 8% and Tesla stock swooned nearly 10%.
12:05pm: Dow winning streak continues
US stocks were mixed in noon trading as tech stocks tumbled on disappointing results from Tesla and Netflix, while the Dow is on track for a nine-day winning streak.
At midday, the Dow gained 284 points to 35,345, while the S&P 500 eased 11 points at 4,555 and the tech-heavy Nasdaq lost 172 points to 14,186.
“Although the number of bear market prognosticators has certainly thinned out given the market’s impressive run, there remains a diehard contingent that have viewed recent trends as nothing more than a bear market rally,” BMO Capital Markets analyst Brian Belski wrote.
“Unfortunately for this crowd, history does not appear to be on their side,” he added.
Notable movers included shares of Netflix Inc, which slipped 9% after the streaming giant’s 2Q earnings beat estimates but its revenue fell short.
9:40am: Dow higher as Nasdaq struggles
US stocks were mixed at the open on Thursday as investors digested new economic data and earnings continued to roll in.
Disappointment over Tesla and Netflix’s earnings weighed on the Nasdaq, with their shares falling 3.8% and 7.7% respectively at the open.
Just after the opening bell, the Nasdaq had shed 54 points or 0.4% at 14,304 points, the S&P 500 was down 5 points or 0.1% at 4,562 points, while the Dow Jones had added 146 points or 0.4% at 35,207 points.
Meanwhile, initial jobless claims for last week came in below expectations, falling to a two-month low.
Unemployment claims were 228,000, compared to 237,000 in the prior week and short of the forecast of 240,000.
“The dip in initial jobless claims to a two-month low is a surprise but we have repeatedly argued in recent weeks that the data have to be viewed with extreme skepticism in July and early August because shifts in the timing and extent of the automakers’ annual shutdowns play havoc with the seasonal adjustments,” noted Pantheon Macroeconomics chief economist Ian Shepherdson.
“At this point, it is just not possible to know whether the dip in claims in the past couple of weeks marks a real change or is just noise.”
7:45am: Nasdaq set to open lower
US stocks are expected to retreat at the open on Thursday, giving back some of their recent gains led by the Nasdaq as the latest quarterly updates from two tech giants disappointed after-hours.
Shares of Netflix dropped 8% after the streaming giant saw its $8.19 billion in second-quarter revenue fall short of the $8.3 billion anticipated by analysts. Meanwhile, Tesla shares shed 4% in extended trading as CEO Elon Musk and other executives said on an earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.
In pre-market trading, futures for the Nasdaq 100 were down 0.6%, while those for the S&P 500 shed 0.1%, but contracts for the Dow Jones Industrials Average (DJIA) edged up 0.1%.
On Wednesday, the DJIA climbed more than 109 points, or 0.3% to close at 35,061, in what was the index’s eighth consecutive day in the green and its longest winning streak since September 2019. Meanwhile, the S&P 500 gained 0.2%, but the Nasdaq Composite ticked up just 0.03% awaiting the key results.
More earnings will flow on Thursday, with IBM, Johnson & Johnson, Travelers, American Airlines, United Airlines, and Blackstone all among those set to report before the opening bell. Three-quarters of the S&P 500 companies that have announced earnings so far have topped estimates, according to FactSet data, which has created optimism about a soft landing for the US economy.
With that in mind, investors will also be keeping an eye on the latest US weekly jobless claims numbers and existing home sales data due out today.
Craig Erlam, senior market analyst, UK & EMEA at OANDA commented: "Equities have performed extremely well recently as economic data has been more promising and the banks kicked off earnings season positively. Perhaps that's just lifted expectations a little too much and we're seeing some profit-taking going into the end of the week."