Stocks declined on Thursday as investors took home some profits from large broader market gains earlier this week. The Dow Jones Industrial Average dropped over 500 points, while the S&P 500 Index and Nasdaq Composite lost 0.8% and 0.7%, respectively.
Here's how the market settled on Thursday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
In Focus:
Bank of America said in a note late Wednesday that the previous session's rotation out of semiconductor stock was likely driven by positioning, but artificial intelligence remains that strongest and most dependable area of capital expenditures, according to analyst Vivek Arya.
"We understand the rotation away from AI/data-center semits towards industrial/auto/consumer, but it's not supported by fundamentals and is likely short-term positioning driven," Arya wrote.
Prime Day:
Amazon
According to Adobe, sales in the electronics category rose 61% compared with average daily sale in June, with growth for tablets (up 117%), televisions (up 111%), and headphones and bluetooth speakers (up 105%) being amongst the highlights.
In Economic News:
Initial Unemployment Claims rose to its highest level since 2023 last week, while continuing claims reached their highest reading since 2021, the Labor Department reported Thursday, as the labor market continues to show signs of cooling in response to higher-for-longer interest rates.
Jobless claims totaled 243,000 for the week ended July 13, increasing by 20,000 from the previous week and coming in ahead of estimates. The reading is tied for the highest since Aug. 12, 2023. Meanwhile, continuing claims, which are tracked a week behind, climbed to 1.867 million, its highest level since Nov. 27, 2021.
On the Earnings Front:
United Airlines
"Looking back at the quarter now, it is increasingly clear that demand was in fact strong, it just could not keep up with the incremental industry domestic capacity added in 2024," Chief Commercial Officer Andrew Nocella said during the company's earnings call with analysts. "Excess capacity, in turn, pressured yields."
Taiwan Semiconductor
Domino's Pizza
"Our year-to-date performance demonstrates that our Hungry and MORE strategy is off to a great start, having an immediate impact on sales and profits," said CEO Russell Weiner in a release.
Looking Ahead:
Market participants will shift their attention to Netflix's