In the latest trading session, US benchmark equity indexes experienced declines, reflecting investor sentiment as they analyzed a new wave of corporate earnings and awaited the pivotal results from streaming titan Netflix ($NFLX). The Dow Jones Industrial Average slipped 0.6%, settling at 40,935.1 during midday trading on Thursday.
The Nasdaq Composite faced a 0.5% drop, reaching 17,991.9, while the S&P 500 recorded a loss of 0.4%, closing at 5,565.3. Within the sectors, health care reported the most significant downturn, contrasting with energy, which emerged as the strongest performer of the day. In company-specific developments, Domino's Pizza ($DPZ) announced a year-over-year increase in its second-quarter results; however, the pizza giant has temporarily halted its long-term projections for global net store growth.
This announcement resulted in a sharp decline in the company’s stock, which fell nearly 14%, marking the most substantial decline on the S&P 500. On a positive note, D.R. Horton ($DHI) stood out as the best performer on the S&P 500, posting an impressive 11% increase in share value after revealing that its fiscal third-quarter results unexpectedly improved year over year.
The homebuilder also revised its revenue forecast for the complete fiscal year, contributing to positive investor sentiment. Cintas ($CTAS) saw its shares climb 6.3%, making it the top gainer on the Nasdaq and one of the leading performers on the S&P 500, following a quarterly earnings report that exceeded market expectations.
Anticipation surrounds the upcoming earnings announcement from Netflix, which is scheduled to report its results after the market's closing bell, accompanied by updates from other firms like Intuitive Surgical ($ISRG) and PPG Industries ($PPG). Meanwhile, the bond market noted a rise in the US 10-year yield, which increased by 3.5 basis points to 4.18% during intraday trading, while the two-year yield gained 1.9 basis points, reaching 4.45%.
In the realm of economic indicators, recent data revealed that weekly applications for unemployment insurance in the US surged beyond market expectations, with continuing claims climbing to their highest level since late November 2021. Additionally, West Texas Intermediate crude oil prices rose by 0.7%, now priced at $83.42 per barrel during intraday trading.
Recent comments from Federal Reserve Governor Christopher Waller indicated that policymakers are nearing a decision on lowering interest rates, suggesting that increasing evidence of easing inflation is being observed; nevertheless, he cautioned that the job is not yet complete. Gold prices remained relatively stable at $2,459.60 per troy ounce, while silver prices dipped 0.3% to $30.28 per ounce..