US close: Stocks retreat as blue chip earnings disappoint, oil prices rise

(Sharecast News) - US stocks finished moderately lower on Thursday, with the S&P 500 and Nasdaq both retreating from record highs, as a barrage of disappointing earnings and weakness in the software sector weighed on indices.

Another rise in oil prices also weighed heavily on sentiment as geopolitical tensions in the Middle East remained in focus.

The Dow and S&P 500 both fell 0.4%, while the Nasdaq dropped 0.9%.

"Traders have begun to focus more on actions than words posted on social media and there has been plenty of action today, with both Iran and the US flexing their muscles in the Strait of Hormuz," said AJ Bell's head of financial analysis Danni Hewson.

"As companies are now factoring in the impact of the war into earnings updates, it's clear this has gone way past the point where investors could hope things would get back to 'normal' in quick order."

Donald Trump said there was "no time frame" for ending the war in Iran, while a lack of commitment from Iran reportedly led to JD Vance cancelling his trip to join peace talks. Iran state media also reported that Iranian negotiators declined to attend, calling talks with the US a "waste of time".

Investors were mulling a report that the US military had intercepted at least three Iranian-flagged tankers in Asian waters. According to Reuters, citing shipping and security sources, the US was redirecting them away from their positions near India, Malaysia and Sri Lanka.

Brent crude rose 3.1% to $105.07 a barrel, marking its fourth straight gain, while WTI settled 3.1% higher at $95.85 a barrel.

On the macro front, the Chicago Federal Reserve's national activity index fell to -0.20 in March, its lowest level since November, down from a revised +0.03 in February as three of the four key categories declined.

Initial weekly jobless claims rose by 6,000 to 214,000 last week, the Labor Department revealed, up from the previous week's upwardly revised 208,000 print and ahead of expectations for a reading of 212,000. Continuing claims increased by 12,000 to 1.82m, while the four-week moving average, which aims to strip out week-to-week volatility, rose by 750 to 210,750.

Finally, S&P Global's manufacturing PMI climbed to 54.0 in April, up from 52.3 in March and surpassing market expectations of 52.5, according to a preliminary reading. This marked the strongest improvement in factory business conditions since May 2022. The services PMI rose to 51.3, up from 50.3 and well above market expectations of 50.

Tech stocks tank

Electric carmaker Tesla was in the red after posting firstquarter earnings after the close on Wednesday that came in ahead of expectations, although revenue fell short as the firm continued to face pressure on its core automotive business.

Both IBM and ServiceNow beat forecasts with their first-quarter earnings, though share prices of each company dropped as analysts highlighted disappointing outlooks.

Software stocks dominated the fallers list on the Nasdaq on renewed fears about the impact of AI on business models, with Workday, Autodesk, Salesforce, Intuit, Adobe, Gen Digital and Check Point Software Technologies all registering steep losses.

Warner Bros Discovery fell as shareholders "overwhelmingly" approved the company's proposed $110bn merger with Paramount Skydance.

First-quarter results from American Express beat market expectations as revenues rose at a double-digit rate on the back of strong business from its premium customer base, though shares retreated after hitting a two-month high the previous session.

American Airlines finished flat after the carrier lowered its profit forecasts on the back of an additional $4bn in fuel costs, even as first-quarter revenues rose to a record high.

Blackstone reported first-quarter earnings ahead of expectations, as stronger inflows and asset sales helped offset investor caution over geopolitical turmoil and concerns around parts of the private credit market. Shares in the world's largest alternative asset manager still finished firmly lower.

Meanwhile, Honeywell also dropped as second-quarter sales and earnings came in below market expectations, with disruptions linked to the conflict in the Middle East weighing on demand and delaying projects.

Dow Jones - Risers

Caterpillar Inc. (CAT) $835.24 3.26%

Verizon Communications Inc. (VZ) $47.22 2.70%

Coca-Cola Co. (KO) $76.28 2.21%

Apple Inc. (AAPL) $273.43 2.13%

Johnson & Johnson (JNJ) $230.65 2.01%

Procter & Gamble Co. (PG) $145.71 2.00%

Travelers Company Inc. (TRV) $307.33 1.87%

Merck & Co. Inc. (MRK) $114.62 1.53%

Amgen Inc. (AMGN) $348.62 1.30%

Boeing Co. (BA) $234.15 1.24%

Dow Jones - Fallers

Salesforce.Com Inc. (CRM) $173.30 -8.69%

International Business Machines Corporation (CDI) (IBM) $231.08 -8.25%

American Express Co. (AXP) $318.55 -4.31%

Microsoft Corp. (MSFT) $415.75 -2.58%

Nike Inc. (NKE) $44.78 -1.97%

Cisco Systems Inc. (CSCO) $88.59 -1.29%

Walt Disney Co. (DIS) $103.65 -1.12%

Visa Inc. (V) $308.88 -0.77%

Dow Chemical Co. (DOW) $38.53 -0.72%

3M Co. (MMM) $144.84 -0.64%

S&P 500 - Risers

United Rentals Inc. (URI) $986.78 22.92%

Texas Instruments Inc (TXN) $282.23 19.69%

Microchip Technology Inc. (MCHP) $90.64 10.59%

Union Pacific Corp. (UNP) $271.26 8.77%

Comcast Corp. (CMCSA) $31.64 8.32%

Norfolk Southern Corp. (NSC) $321.44 7.75%

NextEra Energy Inc. (NEE) $96.25 6.94%

Analog Devices Inc. (ADI) $403.88 6.59%

Advanced Micro Devices Inc. (AMD) $305.33 5.88%

CSX Corp. (CSX) $46.18 5.87%

S&P 500 - Fallers

Freeport-McMoRan Inc (FCX) $61.48 -12.62%

Thermo Fisher Scientific Inc. (TMO) $466.70 -9.20%

Salesforce.Com Inc. (CRM) $173.30 -8.69%

IQVIA Holdings Inc. (IQV) $160.68 -8.29%

International Business Machines Corporation (CDI) (IBM) $231.08 -8.25%

Cognizant Technology Solutions Corp. (CTSH) $55.10 -8.21%

Expedia Group Inc. (EXPE) $250.37 -8.19%

Robert Half Inc. (RHI) $27.20 -7.70%

Revvity, Inc. (RVTY) $87.15 -7.56%

VF Corp. (VFC) $20.02 -7.10%

Nasdaq 100 - Risers

Texas Instruments Inc (TXN) $282.23 19.69%

Microchip Technology Inc. (MCHP) $90.64 10.59%

Comcast Corp. (CMCSA) $31.64 8.32%

Analog Devices Inc. (ADI) $403.88 6.59%

CSX Corp. (CSX) $46.18 5.87%

Sirius XM Holdings Inc (SIRI) $28.00 4.24%

Hasbro Inc (HAS) $96.58 4.07%

Micron Technology Inc. (MU) $481.72 3.98%

Broadcom Inc. (AVGO) $419.94 3.16%

Applied Materials Inc. (AMAT) $403.91 2.60%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Workday, Inc. (WDAY) $114.67 -11.92%

Cognizant Technology Solutions Corp. (CTSH) $55.10 -8.21%

Expedia Group Inc. (EXPE) $250.37 -8.19%

Autodesk Inc. (ADSK) $231.98 -6.68%

Booking Holdings Inc. (BKNG) $176.75 -6.53%

Intuit Inc. (INTU) $383.30 -6.51%

Adobe Systems Inc. (ADBE) $238.98 -6.50%

Gen Digital Inc. (GEN) $18.81 -5.95%

Check Point Software Technologies Ltd. (CHKP) $133.82 -5.25%