Major stock indexes were mixed in early trading Thursday as investors reacted to a flurry of earnings reports from major companies, notably tech giants Tesla and Alphabet, and awaited new developments related to tariffs.
The S&P 500 (SPX) and Nasdaq Composite (IXIC) were recently up 0.2% and 0.3%, respectively, after touching new all-time highs in the opening minutes of the session, while the Dow Jones Industrial Average (DJI) slipped 0.7%. Stocks are coming off a winning session on Wednesday, when the S&P 500 and Nasdaq closed at records and the Dow finished just shy of its first new high since December, amid investor optimism about progress on trade talks and generally strong corporate earnings.
President Donald Trump has secured trade agreements with Japan, Indonesia and the Philippines in recent days, and government officials have pointed to progress in discussions with the European Union and other leading trade partners. Investors are keeping close tabs on the trade talks ahead of an August 1 deadline for the U.S. to impose hefty tariffs on imports, which analysts have warned could spark inflation and bite into corporate profits.
Tesla (TSLA) shares were down more than 8% this morning after the EV maker late yesterday reported quarterly numbers that came in below Wall Street’s expectations. Shares of Alphabet (GOOG) climbed 2% after the Google parent released better-than-estimated results and boosted its capital spending plan.
Other mega-cap technology stocks were higher across the board in early trading. Chip giants Nvidia (NVDA) and Broadcom (AVGO) rose 1% and 2%, respectively, while Amazon (AMZN) gained 1%, and Microsoft (MSFT), Apple (AAPL) and Meta Platforms (META) inched higher.
Among other noteworthy post-earnings movers, International Business Machines (IBM), a Dow component, tumbled nearly 10% this morning despite posting earnings that topped analysts’ expectations, as revenue in its software business came in light. Fellow Dow member Honeywell (HON) dropped 6% after a disappointing quarterly report.
Shares of Chipotle Mexican Grill (CMG) plunged 12% as the fast-casual chain scaled back its same-store sales outlook. Dow Inc. (DOW) and American Airlines (AAL) fell 13% and 10%, respectively, while ServiceNow (NOW) and T-Mobile US (TMUS) each jumped about 6% after releasing quarterly numbers.
The yield on the 10-year Treasury note, which affects borrowing costs on a wide array of loans, notably mortgages, was at 4.42%, up from 4.39% at yesterday’s close. The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, was up 0.1% at 97.35.
Bitcoin was at $118,700 recently, little changed from yesterday afternoon. The digital currency has gotten a boost from the approval last week of landmark legislation that aims to bring cryptocurrencies more into the financial mainstream.
Gold futures were down 1% at $3,360 an ounce, losing ground for the second straight day after hitting their highest level in a month earlier this week. West Texas Intermediate futures, the U.S. crude oil benchmark, rose 0.9% to $65.90 per barrel.