Major indexes close lower after earnings and data
US stock markets ended Thursday’s session in negative territory as investors evaluated second-quarter corporate earnings and fresh economic indicators. Technology shares led the decline, putting pressure on the Nasdaq Composite, the Dow Jones Industrial Average and the S&P 500.
Market participants continued to assess whether strong corporate results can justify elevated valuations, particularly across major technology companies, while economic data provided additional signals about consumer activity and labour market conditions.
Nasdaq leads market decline
The Dow Jones Industrial Average declined 0.2%, losing 105.32 points to finish at 52,553.32. Eight of the index’s 30 components ended lower, while 22 stocks recorded gains.
The technology-focused Nasdaq Composite experienced the largest decline, falling 1.5% or 387.28 points to close at 25,881.95.
The S&P 500 dropped 0.5% to finish at 7,533.77. Among its 11 major sectors, three ended lower while eight advanced.
The technology sector was the main source of pressure, with the Information Technology Select Sector SPDR declining 1.8% and the Communication Services Select Sector SPDR falling 2.9%. The Consumer Discretionary Select Sector SPDR decreased 0.3%, while Consumer Staples gained 2.9%.
Market volatility increases
The CBOE Volatility Index, commonly known as Wall Street’s fear gauge, increased 6.8% to 16.73, reflecting greater investor caution.
Total trading volume reached 17.19 billion shares, below the average of 21.19 billion shares recorded over the previous 20 sessions.
The S&P 500 recorded 42 new 52-week highs and two new lows, while the Nasdaq Composite posted 197 new highs and 155 new lows.
Healthcare and transport companies deliver strong results
Several companies reported better-than-expected second-quarter earnings, supporting individual stock performances despite the broader market decline.
UnitedHealth Group reported second-quarter earnings of $6.38 per share, exceeding the Zacks Consensus Estimate of $4.94. Quarterly revenue reached $112.03 billion, although it came in below analysts’ expectations.
Shares of UnitedHealth increased 1.2% following the results.
Abbott Laboratories also exceeded forecasts, reporting earnings of $1.31 per share compared with the expected $1.28. Revenue totaled $12.59 billion, slightly above estimates. The company’s stock jumped 10.7%.
J.B. Hunt Transport Services reported earnings per share of $1.91, beating expectations of $1.71. Revenue reached $3.5 billion, surpassing forecasts by 9.5%. Shares rose 8% after the announcement.
Economic data shows mixed signals
Economic reports released Thursday showed continued consumer strength but also signs of weakness in some areas of the economy.
The Department of Commerce reported that retail sales increased 0.2% in June, slightly above forecasts for a 0.1% rise. May’s figure was revised upward to 1% from the previous estimate of 0.9%.
Compared with the same month a year earlier, retail sales increased 6.7%.
However, core retail sales excluding automobiles declined 0.2% in June, missing expectations for a 0.1% increase.
Housing market remains under pressure
Pending home sales declined 5.4% in June, according to the National Association of REALTORS. The May figure was revised downward to a 3.5% increase from the previous estimate of 3.8%.
On an annual basis, pending home sales decreased 0.3% compared with June of the previous year, highlighting continued challenges in the housing sector.
Labour market data remains resilient
The Department of Labor reported that initial jobless claims fell by 8,000 to 208,000 for the week ending July 11.
The result was below market expectations of 217,000 claims. The previous week’s figure was revised upward by 1,000 to 216,000.
Continuing claims declined by 16,000 to 1.805 million for the week ending July 4, indicating continued stability in the labour market.
Manufacturing activity improves
The Philadelphia Federal Reserve’s manufacturing index showed a notable improvement in July, rising to 41.1 from 10.3 in June.
The stronger reading suggested increased activity among manufacturers and added another positive signal for parts of the US economy.
