Stocks gave up some earlier session gains on Thursday as a morning market rebound failed to secure footing ahead of closing bell. The Dow Jones Industrial Average rose over 80 points after being up as much as 585 points at session highs, while the S&P 500 Index and Nasdaq Composite declined 0.5% and 0.9%, respectively, despite rising nearly 1% each intraday.
Here's how the market settled on Thursday:
S&P 500 Index (SPY ): -0.51% or -27.91 points to 5,399.22
Dow Jones Industrial Average (DIA ): +0.20% or +81.20 points to 39,935.07
Nasdaq Composite Index (QQQ ): -0.93% or -160.69 points to 17,181.72
Making Headlines:
Viking Therapeutics (VKTX ) shares soared over 30% on Thursday after the biotech announced on Wednesday plans to advanced its weight loss injection candidate into a late-stage clinical trial ahead of its previous timeline. Viking is one of several drugmakers hoping to tap into the potential $150 billion GLP-1 market currently led by Novo Nordisk (NVO ) and Eli Lilly (LLY ).
In Economic News:
Economic Activity rose at a higher-than-expected pace in the second quarter, according to the Commerce Department's initial estimate reported Thursday, as consumer spending remained strong amid long-term inflationary pressures.
Real gross domestic product (GDP), which measures all goods and services produced throughout April to June, increased at a 2.8% annualized pace when adjusted for inflation and seasonality, adding to the first quarter's increase of 1.4%.
On the Earnings Front:
Ford (F ) shares slipped lower on Thursday after the Detroit automaker's second-quarter earnings came in below expectations due to longtime warranty costs, affecting profitability. The company maintained its full year earnings outlook, expecting adjusted earnings before interest and taxes between $10 billion and $12 billion.
"We are absolutely a different company than we were three years ago," CEO Jim Farley told analysts on Wednesday during the company's earnings call regarding its restructuring plan, added that the "remaking of Ford is not without growing pains."
Stellantis (STLA ) reported a 48% decline in first-half net profit on Thursday as reduced volumes and temporary production issues impacted its market share in North America. The automaker's U.S. sales declined by 16% in the first half of the year and its North American market share ticked down 1.8 percentage points to 8.2%. Still, the company reaffirmed its 2024 guidance of a double-digit adjusted operating income margin, positive industrial free cash flow and at least 7.7 billion euros worth of dividends and buybacks for investors.
Hasbro (HAS ) reported strong second-quarter earnings on Thursday, driven by gains in the company's digital gaming segment. CEO Chris Cooks highlighted during the company's earnings call that it will continue to bolster its digital gaming portfolio, saying "we're going all in on becoming a digital play company."
Honeywell International (HON ) shares were under pressure on Thursday after the industrial sector bellwether issued lackluster forward guidance following its strong second-quarter results. The company expects third-quarter earnings per share in a range of $2.45 and $2.55, missing analysts forecasts for at least $2.58 per share.
American Airlines (AAL ) shares also fell Thursday after the company slashed its full-year profit outlook due to industry oversupply and a failed sales strategy. The airline expects to earn an adjusted $0.70 to $1.30 per share in 2024, well below the $2.25 to $3.25 range it issued in April. American also estimated its unit revenue could fall as much as 4.5% in the third quarter as demand fails to meet supply.
"As we take a look into the fourth quarter and then beyond, we're going to react to the marketplace and making sure that we're competitive, but at the same time, doing what's right for profitability," CEO Robert Isom told analysts during the company's Thursday earnings call.
Southwest Airlines (LUV ) saw a similar profit slump in its second-quarter as the oversupplied U.S. market led the carrier to issue discounted seats during the busy start of the summer travel season. THe company warned that unit revenue for its third-quarter could decline as much as 2% year-over-year and non-fuel costs could increase to as much as 13%.
"Our second quarter performance was impacted by both external and internal factors and fell short of what we believe we are capable of delivering," CEO Bob Jordan said in a release.
Keurig Dr. Pepper (KDP ) reported in-line second-quarter results on Thursday as U.S. soda sales benefited from increased prices. Net sales rose 3.5% during the quarter to $3.92 billion, while volume increased 1.8% and prices advanced by 1.6% year-over-year.
For Friday:
Market participants will turn their attention towards June's personal consumption expenditures reading due out Friday morning, as well as earnings reports from companies including Colgate-Palmolive (CL ), 3M (MMM ) and Bristol-Myers Squibb (BMY ) to close out a busy week of earnings.
