Wall Street stocks traded mixed on Thursday morning as investors weighed a fresh batch of corporate earnings, with the S&P 500 and Nasdaq composite each advancing 0.2% while the Dow Jones Industrial Average slipped 21 points, or less than 0.1%, according to Business Today. The moves left major indices hovering near the record levels reached earlier in the week.
Indices Hold Near Records
The S&P 500 gained 0.2%, remaining close to the record high it reached on Tuesday, while the Dow was trading near its all-time high by 9:53 a.m. Eastern time, the report said. The Nasdaq composite advanced 0.2%.
After beginning the week with strong gains that pushed major indexes to record levels, the market has settled over the past two sessions, according to an AP report cited by Business Today.
Earnings Drive Sharp Movers
Corporate results drove the sharpest share-price moves. Keurig Dr Pepper climbed 1% after posting quarterly earnings and revenue that exceeded analysts' expectations. Molson Coors also rose 1% after delivering financial results that were viewed positively by investors.
On the downside, Honeywell Aerospace plunged 21% after reporting results that came in well below market forecasts. Digital advertising company AppLovin dropped 19.6% following the release of mixed quarterly financial results.
| Company | Share move | Reported detail |
|---|---|---|
| Keurig Dr Pepper | +1% | Quarterly earnings and revenue exceeded analysts' expectations |
| Molson Coors | +1% | Results viewed positively by investors |
| Honeywell Aerospace | -21% | Results came in well below market forecasts |
| AppLovin | -19.6% | Mixed quarterly financial results |
| SpaceX | +0.6% | Lock-up expired on 911+ million shares |
SpaceX Lock-Up Expiry
SpaceX shares edged up 0.6% as more than 911 million shares owned by the company's early investors and employees became eligible for sale on Thursday when the stock's lock-up period expired, Business Today reported. That figure is more than twice the number of shares originally made available during Elon Musk's company's initial public offering. After initially surging well above the $150 offer price and making Musk the world's first trillionaire, the shares have since fallen by about 25% and were trading near $110.
Oil, Bonds and Inflation
Oil prices moved higher as uncertainty surrounding the US war with Iran continued to disrupt the global movement of crude. Brent crude, the international benchmark, rose 1.7% to $80.78 a barrel. Iran has said it is nearing an agreement with Oman to reopen the Strait of Hormuz. President Donald Trump has also previously indicated that a deal is close, although the conflict has experienced repeated periods of escalation and de-escalation over the past five months, according to the report.
The rise in crude prices has intensified inflationary pressures by increasing gasoline prices and driving up transportation and shipping costs. In the bond market, US Treasury yields edged higher, with the yield on the 10-year Treasury note increasing to 4.64% from 4.63% at Wednesday's close.
Global Market Snapshot
European stock markets traded higher, while most Asian markets ended the overnight session in negative territory, the report said.
The divergence between earnings winners and losers underscores the stock-specific nature of the current reporting season, with consumer beverage makers gaining while industrial and ad-tech names sold off. At the same time, rising crude and Treasury yields point to persistent inflationary pressure, a factor executives and investors will continue to monitor as the quarterly reporting season continues.
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