US open: Stocks slip as traders digest earnings, Middle East‑driven oil jump

(Sharecast News) - Major indices opened lower on Thursday as investors digested another round of earnings, renewed concerns over AIrelated spending and a fresh jump in oil prices following escalating tensions in the Middle East.

As of 1520 BST, the Dow Jones Industrial Average was down 0.86% at 51,767.99, while the S&P 500 shed 0.82% to 7,437.44 and the Nasdaq Composite came out of the gate 1.54% weaker at 25,296.39.

Tech earnings were firmly in focus at the open after Alphabet, IBM and Tesla reported overnight, with Google parent company Alphabet posting strongerthanexpected Q2 revenues, rising to $119.80bn against $116.93bn forecast, driven by an 82% surge in cloud revenue, although adjusted earnings per share of $2.85 came in just shy of expectations.

Tesla, meanwhile, delivered weakerthanexpected Q2 earnings despite topping revenue forecasts, reporting adjusted EPS of $0.33 versus $0.51 expected on revenue of $28.24bn, while IBM lowered its 2026 outlook and posted softer quarterly profits, with adjusted EPS of $2.93 missing estimates and revenue of $17.16bn falling short of consensus.

As far as Thursday's earnings slate goes, American Airlines cut its 2026 earnings outlook again on Thursday, warning higher fuel costs were outweighing recent fare increases. The carrier now expects anything from an adjusted loss of $0.65 per share to earnings of $0.65, well below April's guidance and far short of forecasts issued at the start of the year. For the second quarter, AA posted adjusted EPS of $0.15, ahead of the $0.03cents expected, on revenues of $16.74bn.

TMobile posted secondquarter earnings that came in ahead of expectations, delivering EPS of $2.85 versus the $2.58 forecast and lifting its fullyear cashflow guidance, though revenue of $22.79bn came in just shy of consensus and weighed on the shares, while Comcast also reported earnings, saying group revenues had dipped 1.2% to $29.94bn, albeit ahead of analyst estimates, while proforma sales rose 4.7% following its Versant spinoff, and adjusted EPS of $1.04 topped the $0.97 forecast, and Lockheed Martin turned in adjusted EPS of $7.94, comfortably above the $7.22 consensus and up from $7.29 a year earlier, with the aerospace and defence group now topping earnings expectations in three of the past four quarters, while

Still to come, Intel will publish its latest quarterly numbers after the close.

On the macro front, Americans lined up for unemployment benefits at a decelerated pace in the week ended 18 July, according to the Labor Department. Initial jobless claims eased by 22,000 to 187,000, the lowest claim count in almost 60 years and well below expectations of an increase to 212,000. Continuing claims fell by 2,000 to 1.79m on the previous week following an aggressive downward revision, while the four-week moving average came in at 207,500, a decrease of 7,250 a week-on-week. Elsewhere, the advance seasonally adjusted insured unemployment rate was 1.2% for the week ended 11 July, unchanged from the previous week's unrevised rate.

On another note, the Chicago Federal Reserve's national activity index edged up in June, rising to -0.02 from -0.19 in May, signalling a modest improvement in US economic momentum. Productionrelated indicators contributed -0.05, slightly weaker than the prior month, while employment remained unchanged at -0.04. Sales, orders and inventories improved to +0.01 from -0.09, and personal consumption and housing strengthened to +0.05 from -0.03. The threemonth moving average also ticked higher, increasing to -0.05 from -0.10.

The Kansas Fed's July manufacturing activity index will follow was slated for release at 1600 BST.

Crude prices also pushed higher early on Thursday after Yemen's Tehran-backed Houthi militant group claimed responsibility for two attacks on Saudi Arabian tankers in the Red Sea. Brent crude futures rose 6.24% to $99.94 a barrel, while West Texas Intermediate futures gained 5.26% to $91.40 a barrel.

"From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran," Donald Trump said on social media.

Treasury yields also rose following the Middle East escalation, with the benchmark ten-year yield hitting its highest level since January 2025.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Dow Chemical Co. (DOW) $31.89 2.56%

Chevron Corp. (CVX) $196.29 1.94%

Caterpillar Inc. (CAT) $898.35 1.23%

Merck & Co. Inc. (MRK) $129.31 1.21%

Boeing Co. (BA) $210.58 0.92%

Johnson & Johnson (JNJ) $255.13 0.08%

Dowdupont Inc. (DWDP) $0.00 0.00%

Walgreens Boots Alliance, Inc. (WBA) $0.00 0.00%

Walmart Inc. (WMT) $0.00 0.00%

Verizon Communications Inc. (VZ) $44.31 -0.06%

Dow Jones - Fallers

Walt Disney Co. (DIS) $93.50 -2.26%

Apple Inc. (AAPL) $320.61 -2.26%

American Express Co. (AXP) $341.10 -2.25%

Procter & Gamble Co. (PG) $146.41 -1.78%

Home Depot Inc. (HD) $325.06 -1.76%

Goldman Sachs Group Inc. (GS) $1,075.44 -1.71%

Nike Inc. (NKE) $41.10 -1.68%

International Business Machines Corporation (CDI) (IBM) $202.15 -1.64%

Microsoft Corp. (MSFT) $387.78 -1.45%

Amgen Inc. (AMGN) $363.39 -1.40%

S&P 500 - Risers

United Rentals Inc. (URI) $1,163.47 13.08%

Lockheed Martin Corp. (LMT) $574.81 11.75%

Allegion (ALLE) $154.67 11.23%

Thermo Fisher Scientific Inc. (TMO) $580.31 10.30%

Quest Diagnostics (DGX) $232.73 10.07%

RTX Corporation (RTX) $212.55 8.69%

Sl Green Realty Corp. (SLG) $54.43 7.89%

Norfolk Southern Corp. (NSC) $355.69 7.45%

Huntington Ingalls Inds Inc Wi (HII) $294.03 6.17%

Union Pacific Corp. (UNP) $311.66 5.96%

S&P 500 - Fallers

American Airlines Group (AAL) $13.47 -10.65%

Rollins Inc. (ROL) $38.57 -10.52%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Alphabet Inc. Class C (GOOG) $320.01 -7.73%

Dover Corp. (DOV) $197.59 -7.58%

Globe Life Inc. (GL) $172.01 -7.55%

Alphabet Inc. Class A (GOOGL) $321.20 -7.44%

DENTSPLY Sirona Inc. (XRAY) $12.93 -6.34%

Intuitive Surgical Inc. (ISRG) $331.17 -5.96%

Coty Inc. Class A (COTY) $2.59 -5.49%

Nasdaq 100 - Risers

Seagate Technology Plc (STX) $924.59 5.08%

Western Digital Corp. (WDC) $559.45 5.06%

CSX Corp. (CSX) $52.46 4.89%

Illumina Inc. (ILMN) $198.22 4.04%

PACCAR Inc. (PCAR) $132.45 3.98%

Wynn Resorts Ltd. (WYNN) $96.07 3.01%

Micron Technology Inc. (MU) $986.99 2.83%

Broadcom Inc. (AVGO) $394.44 2.78%

Applied Materials Inc. (AMAT) $566.38 2.24%

Nvidia Corp. (NVDA) $208.96 1.68%

Nasdaq 100 - Fallers

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

Tesla Inc (TSLA) $325.90 -13.05%

American Airlines Group (AAL) $13.47 -10.65%

Alphabet Inc. Class C (GOOG) $320.01 -7.73%

Alphabet Inc. Class A (GOOGL) $321.20 -7.44%

DENTSPLY Sirona Inc. (XRAY) $12.93 -6.34%

Intuitive Surgical Inc. (ISRG) $331.17 -5.96%

T-Mobile Us, Inc. (TMUS) $180.40 -5.96%

Workday, Inc. (WDAY) $129.52 -5.60%

Align Technology Inc. (ALGN) $167.88 -5.34%