Stock market today: Dow, S&P 500, Nasdaq trade mixed as Wall Street weighs Google, Tesla earnings
US stocks traded mixed on Thursday, as hopes for a US-EU trade deal kept fresh records in sight and Wall Street assessed earnings from tech giants Alphabet (GOOG) and Tesla (TSLA).
The Dow Jones Industrial Average (^DJI) dropped 0.7% amid a post-earnings slide in IBM (IBM) shares, after the blue-chip index ended Wednesday just shy of its first record close this year.
Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.3%, while the S&P 500 (^GSPC) climbed more than 0.1% on the heels of more all-time closing highs.
Alphabet beat Wall Street's second-quarter earnings expectations and doubled down on its AI spending spree. The Google parent's shares rose alongside other AI-linked stocks such as Nvidia (NVDA), helping buoy the tech-focused gauges.
Read more: Full earnings coverage in our live blog
But fellow "Magnificent Seven" stalwart Tesla's stock sank after an earnings miss, a continued slump in European sales, and a warning from CEO Elon Musk that the EV maker faced "rough quarters" as President Trump's budget bill kills off tax credits.
Earnings season continues on Thursday with results from Intel (INTC) and American Airlines (AAL).
Meanwhile, trade deal hopes continued to run high after the US-Japan pact helped fuel more records for the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) on Wednesday.
The EU and US are closing in on an agreement that would impose a 15% tariff for most imports from Europe, instead of the 30% threatened, media reports said.
Read more: The latest on Trump's tariffs
That rate is emerging as a potential new baseline for the "reciprocal" tariffs set to kick in on Aug. 1, going by Trump's comments late Wednesday. Previously, the president had imposed a 10% baseline rate on countries as part of his sweeping April tariffs.
On the economic front, weekly initial jobless claims data on Thursday morning gave evidence of a "no fire, no hire" labor market. Claims hit their lowest level since April, while continuing claims — a sign that those out of work are taking longer to find new jobs — hovered near their highest since 2021.
Updates on US manufacturing and services activity in July and new home sales are also on the docket.
LIVE12 updates-
Laura Bratton
UnitedHealth stock drops after company confirms DOJ investigation into Medicare billing practices
UnitedHealth (UNH) stock fell as much as 2% early Thursday after the insurance giant disclosed in a regulatory filing Thursday morning that it is facing an investigation from the Department of Justice into its Medicare billing practices, Yahoo Finance's Jake Conley reports.
Conley writes:
-
Laura Bratton
Stocks trade mixed at the open
US stocks traded mixed on Thursday, as hopes lifted for a US-EU trade deal and Wall Street digested earnings results from tech giants Alphabet (GOOGL, GOOG) and Tesla (TSLA) as well as fresh labor market data.
The Dow Jones Industrial Average (^DJI) dropped 0.6%, after the blue-chip index ended Wednesday just shy of tis first record close this year.
The tech-heavy Nasdaq Composite (^IXIC) rose roughly 0.3%, while the S&P 500 (^GSPC) climbed more than 0.1%.
-
Grace O'Donnell
IBM stock slides after software sales disappoint
International Business Machines stock (IBM) slid 6% ahead of the opening bell after second quarter sales in its core software segment were lower than expected and the company did not provide a forecast for the third quarter.
IBM's software segment, which has traditionally been a bright spot, reported sales of $7.39 billion, missing analysts' average estimate of $7.41 billion, per Reuters. After a 30% run-up in the stock year to date, the company had little room to miss estimates.
Still, IBM's adjusted earnings per share of $2.80 topped the Street's expectations, and its revenue of $16.98 billion for the quarter beat estimates of $16.59 billion.
Companies' spending on artificial intelligence infrastructure spurred demand for IBM's latest AI-specialized mainframes. The infrastructure segment, which houses its mainframe, reported revenue of $4.14 billion, beating estimates of $3.81 billion.
-
Josh Schafer
Jobless claims hit lowest level in three months
Amid a quiet week of economic data, investors were greeted with yet another sign that the US labor market isn't flashing glaring alarm signals.
Data from the Department of Labor released Thursday morning showed 217,000 initial jobless claims were filed in the week ending July 19, down 4,000 from the week prior and the lowest number of weekly filings since the week of April 12. After surging in May, weekly filings have consistently declined throughout the start of the summer.
Meanwhile, 1.955 million continuing claims were filed, up about 4,000 from the week prior and hovering near the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs.
-
Karen Friar
Tesla stock slides as Musk warns of a 'few rough quarters'
Tesla's (TSLA) stock is sinking in premarket as a warning from CEO Elon Musk rings in investors' ears.
Shares fell over 6% after Tesla posted an earnings miss, setting the stage for a tough stretch ahead. The automaker faces the end of EV incentives brought in by President Trump, alongside potential delays to its autonomous vehicle rollout.
“We probably could have a few rough quarters,” Musk said, per Bloomberg.
Meanwhile, a report Thursday showed Tesla's sales in Europe fell in June for the sixth straight month, falling 23%.
Tesla's finance chief flagged other challenges on a conference call with analysts. Yahoo Finance's Pras Subramanian reports:
-
Grace O'Donnell
The AI trade hasn't changed for Big Tech — and that's working for them
Alphabet (GOOG, GOOGL) and Tesla (TSLA) kicked off Big Tech earnings on Wednesday afternoon, and Yahoo Finance's Hamza Shaban recaps what investors learned in today's Morning Brief:
-
Jenny McCall
Good morning. Here's what's happening today.
Economic data: Initial jobless claims (week ending July 19) Chicago Fed national activity index (June); S&P Global US manufacturing PMI (July preliminary); S&P Global US services PMI (July preliminary); S&P global US composite PMI (July preliminary); New home sales (June)
Earnings: American Airlines (AAL), Blackstone (BX), Deckers (DECK), Dow (DOW), Honeywell (HON), Intel (INTC), Keurig Dr Pepper (KDP), Nasdaq (NDAQ), Nokia (NOK), Southwest Airlines (LUV), Union Pacific (UNP)
Here are some of the biggest stories you may have missed overnight and early this morning:
Trump signals baseline hike in 'reciprocal' tariffs to 15%
The AI trade hasn't changed for Big Tech — and that's working for them
Trump to visit Fed HQ for refurb check as he battles with Powell
Keurig Dr Pepper beats estimates but coffee inflation lurks
Google beats on earnings, doubles down on AI spending spree
Tesla stock sinks after earnings miss, 'rough' patch warning
Chipotle plunges after company reports 2nd straight sales decline
Goldman's trading desk touts cheap hedges against S&P 500 slide
-
Karen Friar
Meme stock rally has investors feeling 'invulnerable'
Retail investors with an appetite for risk are piling into speculative trades and creating a new roster of meme-stocks, helping power a broader rally in markets, Yahoo Finance's Jake Conley reports:
-
Karen Friar
STMicro stock falls by most in a year after surprise loss
STMicroelectronics (STM) delivered a double whammy in its earnings on Thursday: A surprise Q2 loss from restructuring charges and a disappointing outlook for Q3.
US-listed stock in the European chipmaker slid over 10% in premarket trading, while its shares in Paris (STMPA.PA) fell to their lowest in a year at one point, down 13%.
Bloomberg reports:
-
Jenny McCall
Trending tickers: Chipotle Mexican Grill, T-mobile and Wolfspeed
Here are some top stocks trending on Yahoo Finance in premarket trading:
Chipotle Mexican Grill (CMG) stock fell 10% before the bell on Thursday after reporting another quarter of negative sales growth.
The fast-casual restaurant chain posted results on Wednesday as it navigates an uncertain consumer environment and as its new leadership deals with the most challenging backdrop in years.
T-mobile (TMUS) stock rose 5% premarket on Thursday after beating analyst estimates on Wednesday. The telecom group's CEO Mike Sievert told Yahoo Finance's executive editor Brian Sozzi that the company's steady value messaging is helping it to gain market share.
Wolfspeed (WOLF) shares rose 18% before the bell. The chipmaker's stock reacted positively this week to the new US-Japan trade deal and has been up 13% over the last five days. The US-Japan trade deal boosts optimism for Wolfspeed as it supports Renesas’ EV chip production, raising hopes for more deals with automakers like Jaguar Land Rover.
-
Rian Howlett
American Eagle stock soars after-hours in latest meme push
Stock in retail giant American Eagle Outfitters, Inc. (AEO) flew up over 25% in after-hours trades overnight Thursday. The individual share price went from $10.82 at close to a peak of $13.80 as of 10:57 p.m. EDT.
The jump in value can be attributed to the current meme stock phase that has pushed up value in companies such as Opendoor (OPEN), Krispy Kreme (DNUT), Kohl's (KSS), and GoPro (GPRO) over the past few days.
Much of meme-stock mania can be attributed to retail investors making moves in stocks with 'undervalued fundamentals', and the rallying of groups around individual personalities. With this in mind, the release of an ad campaign starring actress Sydney Sweeney has been leapt upon by members of online communities on Reddit and X.
Though seen in other companies receiving the benefits of online attention, with Opendoor receiving a 140% increase in retail revenue in the past two weeks, it is unclear whether the increase in stock value will see a corresponding increase in revenue for American Eagle.
-
Rian Howlett
Oil prices rise on trade deal positivity, stockpile reduction
Crude oil prices climbed late night Thursday, fueled by hopes for progress in US trade talks and a surprise plunge in American oil stockpiles, easing concerns about global economic slowdown.
Reuters reports:
Content Original Link:
" target="_blank">
