S&P Fades from 6-Week Streak

The S&P 500 dipped Thursday as traders assessed the latest batch of corporate earnings. Meanwhile, the Nasdaq got a boost from Tesla shares.

The Dow Jones Industrials retreated 169.23 points to begin Thursday at 31,705.61.

The S&P 500 dropped 9.76 points to 3,944.42.

The NASDAQ Composite inched lower 10.77 points to 11,886.88.

Those moves come as Wall Street is enjoying a July rebound. All three major averages hit their highest levels in more than a month during Wednesday’s session, with the S&P 500 reaching its best closing level since June 9.

Tesla shares jumped 4% after the automaker reported stronger-than-expected earnings but shrinking automotive gross margins.

AT&T dropped 10% after lowering its full-year free cash flow guidance. Still, the telecommunications company exceeded expectations in its second quarter.

American Airlines beat revenue expectations in the second quarter, and forecasted a profit in the third quarter, as consumers continue to travel even with higher prices. Shares fell 7%.

United Airlines reported that it returned to profitability during the second quarter, but results came in below expectations. The stock fell 9%.
Shares of Alcoa and CSX jumped after the companies beat expectations.

In other corporate news, shares of Carnival dropped more than 14% after the cruise company announced that it was selling an additional $1 billion of stock.

Roughly 18% of S&P 500 have reported earnings for the second quarter. Of those companies, about 71% have beaten expectations.

On the economic front, initial jobless claims continued their upward trend and touched their highest level since November 2021. Initial claims climbed to 251,000 for the week of July 16, up from an adjusted 244,000 claims from the prior week, in its third straight weekly gain.

Meanwhile, the European Central Bank on Thursday raised interest rates for the first time in 11 years to combat inflation in the euro zone. The central bank raised benchmark rates by 50 basis points.

Treasury prices moved sharply higher, lowering yields to 2.95%, from Wednesday’s 3.03%. Treasury prices and yields move in opposite directions.

Oil prices plummeted $3.33 to $96.55 U.S. a barrel.

Gold prices recovered $5.30 to $1,705.50 U.S. an ounce.