Stock Market Today: Dow Jones, S&P 500 Fall; US economy shrinks for second straight quarter
Stock Market Today Mid-Morning Market Updates
Thursday morning, the Dow Jones Industrial Average is down 171 points. This is likely due to the US economy now being labeled a recession following the release of new GDP data on Thursday morning. In the report, the US economy shrank 0.9% in the second quarter. Given that first quarter real GDP growth fell 1.6%, this is two consecutive quarters of negative GDP growth. As a result, it is widely perceived by investors that the United States is in a recession.
Additionally, Thursday morning’s results from companies like Pfizer, Inc. (NYSE: PFE) and Mastercard Inc. (NYSE: MA) are also making headlines.
Shares of PFE fell more than 2% on Thursday morning after the company’s quarterly report beat analysts’ expectations. PFE stock is currently trading at $50.13 per share. In the earnings report, Pfizer announced earnings per share of $2.04 on revenue of $27.7 billion. The consensus earnings estimate on Wall Street was earnings per share of $1.75 per share on revenue of $26 billion.
Meanwhile, MA stock rose on Thursday after falling second-quarter earnings. MA shares rose slightly on Thursday morning to $345.63 per share. In the report, Mastercard (MA) reported earnings per share of $2.56 on revenue of $5.6 billion. Compared to Wall Street’s consensus earnings estimate of $2.36 per share on revenue of $5.2 billion.
Dow Jones today
Among the Dow Jones leaders, stocks of Apple (NASDAQ:AAPL) are trading down 1.29% on Thursday, while Microsoft (NASDAQ: MSFT) is trading slightly higher by 0.80%. Meanwhile, the actions of disney (NYSE: DIS), and Nike (NYSE: NKE) Stocks are mixed in Thursday morning’s trading session. Among the Dow’s financial leaders, stocks of Visa (NYSE:V) and Goldman Sachs (NYSE:GS) are trading lower Thursday morning.
EV Leader Shares You’re here (NASDAQ: TSLA) edged down 0.33% on Thursday. Rival electric vehicle companies like Rivian (NASDAQ: RIVN) were stable Thursday morning %. Lucid Group (NASDAQ: LCID) fell another 3.26% on Wednesday. As a result, shares of LCID have fallen more than 16% in the past five trading days. Chinese electric vehicle leaders like Nio (NYSE:NIO) and Li Auto Inc. (NASDAQ: LI) are trading lower on Thursday.
Stock Market News Today: US Treasury Yield Drops to 2.66%; US economy shrinks for second straight quarter
After the opening of the Stock Exchange on Thursday, the main indices opened in the red. The S&P 500 & Dow and Nasdaq are all trading at 0.63%, 0.53% and 1.14%, respectively. Among listed index funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) fell 1.15% as the SPDR S&P 500 ETF (NYSEARCA: SPY) is also trading down Thursday morning by 0.55%. The benchmark 10-year US Treasury yield is 2.66% in Thursday morning’s trading session.
Subsequently, the latest GDP data was released on Thursday morning. The Bureau of Economic Analysis reported that growth in the US economy contracted 0.9% in the second quarter. With that, first-quarter GDP growth also fell 1.6%. Many people refer to a recession of two consecutive negative quarters as economic GDP growth. The market’s downward move on Thursday comes after a rally on Wednesday. This rally was prompted by the Fed raising interest rates by 0.75 basis points for the second consecutive time to help fight inflation.
Then on Thursday, the Department of Labor released data on jobless claims. In the report, new jobless claims fell by 5,000 to 256,000 for the week to July 23. However, last week’s figures have been revised upwards by 10,000 to 261,000. This is the highest level of claims since November last year.
Meta Platforms (META) Stocks Fall After Missing Earnings
Wednesday after market close Meta Platforms Inc. (NASDAQ:META) flagged a failure in its second-quarter fiscal earnings report. In the report, the company fell short of analysts’ earnings and revenue expectations. Specifically, Meta reported earnings of $2.46 per share on revenue of $28.8 billion. Versus consensus earnings estimates of $2.50 per share on revenue of $28.9 billion. It was the first time the company reported a decline in revenue. As a result, shares of META slid Thursday morning more than 7% to $156.84 per share.
Mark Zuckerberg, CEO and Founder of Meta, said: “It was good to see a positive trajectory on our engagement trends this quarter coming from products like Reels and our investments in AI,” he continued with“We are devoting increased energy and focus to our key business priorities that unlock short- and long-term opportunities for Meta and the people and businesses that use our services.”
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Apple and Amazon revenue on deck after closing bell
Last but not least, we have more top-tier tech giants reporting earnings after the market closes on Thursday. Notably, Appleand Amazon.co.uk (NASDAQ: AMZN). Investors are eagerly waiting to see what kind of profits these big companies will bring in today.
Apart from that, we will also get profits on Thursday afternoon from major stocks to watch like Roku Inc. (NASDAQ: ROKU), Intel Corporation. (NASDAQ: INTC), Premier Solaire Inc. (NASDAQ: FSLR), and others. Needless to say, there is no shortage of headlines to keep investors busy on Thursday.
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