US benchmark equity indexes were lower intraday, driven in part by a post-earnings decline in Microsoft shares, as markets awaited Apple and Amazon.com's results. The Nasdaq Composite was down 2.4% at 18,153 after midday Thursday, while the S&P 500 fell 1.5% to 5,725.4. The Dow Jones Industrial Average lost 0.5% to 41,918.7.
Among sectors, technology saw the steepest decline, while utilities paced the gainers. Tech giants Apple and Amazon.com, along with Intel, are scheduled to report their latest quarterly financial results after Thursday's closing bell. In company news, Microsoft shares were down 5.5% intraday, the steepest decline on the Dow and among the worst on the Nasdaq.
Late Wednesday, the company said it expects fiscal second-quarter revenue growth for its Azure cloud-computing business between 31% and 32% in constant currency. For its just-ended quarter, Microsoft reported a 34% annual gain for Azure and other cloud services at constant currencies. Estee Lauder on Thursday withdrew its fiscal 2025 guidance and slashed its dividend as its first-quarter sales fell more than expected amid headwinds in China and Asia travel retail.
The cosmetics company's shares plunged nearly 21%, the second-worst performer on the S&P 500. Paycom Software shares jumped 25%, the top gainer on the S&P 500, after the company delivered a third-quarter beat late Wednesday. Comcast said Thursday it is considering a potential spin-off of its cable brands to better navigate cord-cutting trends.
The company reported higher-than-expected results for the third quarter. Its shares rose 2.6%, among the best performers on the Nasdaq. The US 10- and two-year yields increased one basis point each to 4.72% and 4.16%, respectively, intraday. In economic news, US consumer spending accelerated more than expected in September, while the Federal Reserve's preferred inflation metric held steady at the annual level, government data showed. "The ongoing strength in consumer spending suggests upside risk to fourth-quarter growth estimates, ruling out another 50-basis-point rate chop from the Fed next week," BMO Capital Markets said.
"However, with headline inflation nearly back to the target and employment costs moderating, a 25-basis-point move remains firmly on the table." West Texas Intermediate crude oil rose 0.8% to $69.14 a barrel intraday. Gold was down 1.8% at $2,750.60 per troy ounce, while silver slumped 3.7% to $32.82 per ounce..