US benchmark equity indexes experienced a downward shift on Thursday as investors sifted through the latest corporate earnings announcements. The Dow Jones Industrial Average took a hit, declining by 1.3%, settling at 40,665, which marked a retreat from the record high achieved on Wednesday. The S&P 500 followed suit, dipping by 0.8% to close at 5,544.6, while the Nasdaq Composite saw a 0.7% decrease, ending at 17,871.2.
Notably, with the exception of the energy sector, every sector faced losses with healthcare leading the decline. In the realm of corporate updates, Domino's Pizza saw its ($DPZ) second-quarter results demonstrate year-over-year growth, yet the pizza chain has decided to temporarily halt its long-term outlook regarding global net store growth.
This announcement led to a significant slump in the company's shares, which declined nearly 14%, marking the steepest drop observed on the S&P 500. Conversely, D.R. Horton ($DHI) emerged as the standout performer on the S&P 500, appreciating by 10%. This impressive rise followed the homebuilder's fiscal third-quarter results, which surpassed expectations.
Furthermore, the company has adjusted its revenue forecast for the remaining part of the year, injecting renewed optimism into its prospects. Cintas ($CTAS) also reported positive numbers, with shares climbing 5.4%. This growth positioned the uniform supplier as the top gainer on the Nasdaq and one of the best performers on the S&P 500.
The company has forecasted continued revenue and earnings momentum for the current fiscal year, following strong annual increases in its fourth-quarter performance. On the bond market front, the US 10-year Treasury yield saw an increase of 5.8 basis points, reaching 4.20%. Meanwhile, the two-year rate also rose by 4.2 basis points, settling at 4.47%. In economic developments, manufacturing activity in the US Mid-Atlantic region experienced a significant uptick this month, outperforming market expectations as both orders and shipments rebounded.
This surge in activity has led expectations to climb to the highest level seen since July 2021, as reported by the Federal Reserve Bank of Philadelphia. However, not all economic indicators were positive. Weekly applications for unemployment insurance in the US rose, surpassing market forecasts, with continuing claims reaching levels not seen since late November 2021, according to government data. In terms of commodity prices, West Texas Intermediate crude oil saw a minor dip, falling 0.5% to $82.40 per barrel on Thursday. Comments from Fed Governor Christopher Waller on Wednesday indicated that policymakers are nearing a decision to lower interest rates, bolstered by emerging signs of easing inflation; nevertheless, he cautioned that work remains. The precious metals market also experienced fluctuations, with gold prices dropping by 0.5% to $2,446.60 per troy ounce and silver slipping by 1.1% to $30.04 per ounce..