As the trading day drew to a close on Thursday, US benchmark equity indexes exhibited a mixed performance, prompting traders to delve deeper into the latest corporate earnings reports alongside official data that revealed a stronger-than-anticipated economic growth rate in the second quarter. Specifically, the Dow Jones Industrial Average exhibited a positive swing, increasing by 0.7% to reach 40,142.3 points.
In contrast, the S&P 500 index experienced a slight decline, ending the day at 5,422.9. Meanwhile, the technologically-driven Nasdaq Composite index saw a decrease of 0.37%, closing at 17,281.4 points. Notably, within the sectors tracked, energy and industrials emerged as the frontrunners in terms of gains, while the sectors of communication services and utilities faced the heaviest declines. Among the companies reporting their quarterly earnings, ServiceNow ($NOW) and Molina Healthcare ($MOH) both delivered impressive second-quarter results that exceeded market expectations.
On the other hand, Ford Motor's ($F) earnings fell short of the anticipated figures, revealing challenges faced by the automotive giant amidst shifting market dynamics. Looking ahead, several notable companies, including L3Harris Technologies ($LHX) and DexCom ($DXCM), are scheduled to unveil their financial results following the closing bell, enticing investors with potential insights into their operational performance. In the bond markets, the US two-year Treasury yield witnessed an uptick of 2.5 basis points, rising to 4.44%, while the 10-year yield saw a modest decline of three basis points, settling at 4.26%.
These movements in yields reflect broader trends as investors gauge the implications of economic growth on interest rates. According to an advance estimate released by the Bureau of Economic Analysis, the US real gross domestic product (GDP) expanded at an annual rate of 2.8% during the June quarter.
This figure surpassed the consensus estimate of a 2% increase, as compiled in a survey by Bloomberg, indicating a robust economic performance that could influence future monetary policy decisions. In the commodities market, West Texas Intermediate crude oil prices experienced a rise of 1.1%, reaching $78.44 per barrel, further demonstrating the ongoing volatility in energy markets amidst fluctuating demand and geopolitical considerations..