U.S. benchmark equity indexes experienced an uptick during intraday trading as investors analyzed the latest corporate earnings results alongside official economic data. Recent figures indicated that the economy expanded at a pace stronger than previously predicted during the second quarter. The Dow Jones Industrial Average demonstrated a notable increase of 0.9%, reaching 40,220.3 points by midday on Thursday.
Concurrently, both the S&P 500 and the Nasdaq Composite climbed 0.6%, settling at 5,460.5 and 17,447.4, respectively. In sector performance, industrials and energy stood out as the top gainers, whereas utilities and communication services faced the most significant downturns. In individual stock news, ServiceNow ($NOW) and Molina Healthcare ($MOH) reported exemplary performances, with each company's shares soaring by 15%, marking them as the top performers within the S&P 500.
Both companies released their second-quarter earnings late Wednesday, surpassing analyst expectations. On the Dow, IBM ($IBM) emerged as the top gainer, appreciating by 5.8%. The tech giant announced its second-quarter earnings late Wednesday, revealing an unexpected increase year-over-year, driven by a substantial boost from its software division that translated to consolidated revenue exceeding Wall Street predictions. Conversely, Ford Motor ($F) struggled and was identified as the second-worst performer on the S&P 500, with shares plummeting 17%.
The company's second-quarter earnings report, released late Wednesday, disappointed the market due to higher warranty costs and rising expenses, and it continues to forecast a full-year loss concerning its electric vehicle segment. Honeywell International's ($HON) second-quarter performance outpaced market expectations, leading the industrial conglomerate to update its full-year outlook in light of recent acquisitions.
However, Honeywell's shares dropped by 4.3% during intraday trading, marking the largest decline on the Dow. Upcoming earnings reports are anticipated from L3Harris Technologies ($LHX) and DexCom ($DXCM), among others, after Thursday's market close. In the bond market, the U.S. two-year yield increased by 2.7 basis points to reach 4.44% intraday, while the 10-year rate experienced a slight decline of 2.4 basis points, settling at 4.26%. Turning to economic indicators, U.S.
real gross domestic product (GDP) demonstrated an annual growth rate of 2.8% in the June quarter, as per an advance estimate issued by the Bureau of Economic Analysis. This figure surpassed the consensus expectation of a 2% increase based on a survey conducted by Bloomberg. Additionally, the report indicated a surge in consumer spending and a moderation in inflation during the same period. According to analysts at Stifel, the robust GDP report may lead to a noticeably more cautious tone among Federal Reserve officials regarding potential monetary policy adjustments in September. Notably, U.S.
durable goods orders unexpectedly declined in June after four consecutive months of increases, primarily impacted by transportation equipment, as revealed by government data. Initial jobless claims for unemployment insurance in the U.S. fell more than anticipated, as did continuing claims, according to recent government statistics. In the commodities market, West Texas Intermediate crude oil prices increased by 0.9%, reaching $78.30 per barrel during intraday trading.
Meanwhile, gold prices dipped by 2.5%, settling at $2,355.20 per troy ounce, and silver experienced a decline of 4.6%, priced at $27.96 per ounce..