In the latest market update, US benchmark equity indexes experienced a downturn on Thursday as investors took a keen look at the newly released corporate earnings reports. The Dow Jones Industrial Average recorded a decrease of 1.3%, settling at 40,665, which represents a pullback from the historic highs reached just a day prior.
Meanwhile, the S&P 500 index fell by 0.8%, now resting at 5,544.6, and the Nasdaq Composite dropped 0.7%, closing at 17,871.2. Notably, every sector except for energy recorded losses, with healthcare leading the decline. Turning to company-specific news, Domino's Pizza ($DPZ) reported an impressive rise in their second-quarter results compared to the previous year.
However, the iconic pizza chain has temporarily halted its long-term outlook regarding global net store growth, which contributed to a nearly 14% plunge in its stock price—the most significant drop among S&P 500 constituents. On the other hand, D.R. Horton ($DHI) emerged as a standout performer within the S&P 500, boasting a 10% increase in its shares.
This surge followed the homebuilder's unexpected year-over-year advancement in fiscal third-quarter results, alongside a narrowing of its revenue forecast for the full fiscal year. Cintas ($CTAS) also enjoyed a positive day in the markets, with shares increasing by 5.4%. This ascent made them the top performer on the Nasdaq and one of the best in the S&P 500, as Cintas anticipated sustained momentum in revenues and earnings for the current fiscal year subsequent to announcing annual gains in their fourth-quarter results. From a macroeconomic perspective, the US 10-year Treasury yield rose by 5.2 basis points, bringing it to 4.2%, while the two-year yield also climbed by four basis points to reach 4.47%.
In terms of economic data, the Federal Reserve Bank of Philadelphia reported a significant rebound in manufacturing activity within the US Mid-Atlantic region, surpassing expectations this month, with orders and shipments showing an uptick. Furthermore, expectations in this sector have reached their highest point since July 2021. However, labor market indicators show a different picture, as weekly applications for unemployment insurance in the US have surpassed market predictions.
Continuing claims are now at their peak since late November 2021, indicating potential strain in the employment sector. In the commodities market, crude oil prices slipped by 0.8% to $82.15 per barrel. In the backdrop of these developments, Fed Governor Christopher Waller indicated on Wednesday that policymakers are nearing a decision to lower interest rates, influenced by signs of easing inflation, though he acknowledged that further actions are necessary. Lastly, precious metals saw a decrease, with gold dropping 0.6% to $2,446 per ounce and silver retreating by 1.3% to $29.99 per ounce..