US close: Stocks end session lower following first round of bank earnings

Wall Street stocks closed mostly lower on Thursday as Q2 bank earnings began to roll in.

At the close, the Dow Jones Industrial Average was down 0.46% at 30,630.17, while the S&P 500 was 0.30% weaker at 3,790.38 and the Nasdaq Composite saw out the session 0.03% firmer at 11,251.19.

The Dow closed 142.62 points lower on Thursday, extending losses recorded in the previous session following a hotter-than-expected CPI reading.

Quarterly earnings were in focus on Thursday after banking giant JPMorgan said profits fell 28% throughout the period as a result of the group building up reserves for bad loans. JPM also said it had halted buybacks on the back of the earnings miss.

Morgan Stanley also missed profit and revenue expectations with its second-quarter earnings, citing weaker-than-expected investment banking revenue. Morgan Stanley reported earnings of $1.39 per share, short of expectations of $1.53 per share, as profits slumped 29% year-on-year to $2.5bn.

Also in the corporate space, Twitter shares traded lower after the social media giant went down for tens of thousands of users across the globe.

Treasuries also remained inverted on Thursday, potentially indicating a coming recession, with the two-year note yielding 3.136%, ahead of its ten-year counterpart at 2.961% - one of the biggest inversions of this particular spread in more than 20 years.

Adding to recessionary fears, the Federal Reserve's Beige Book, released overnight, indicated that the central bank may also be worried about an upcoming recession due to persistently high inflation.

On the macro front, US producer prices increased to 140.43 points in June, according to the Bureau of Labor Statistics, up from 138.89 points in May. The producer price index for final demand increased a seasonally adjusted 1.1% in June following advances of 0.9% in May and 0.4% in April. On an unadjusted basis, final demand prices moved ahead 11.3% for the 12 months ended 30 June - the largest increase since a record 11.6% jump in March.

Elsewhere, Americans filed new unemployment claims at an accelerated clip in the week ended 9 July, according to the Labor Department. Initial claims for unemployment benefits increased by 9,000 week-on-week to 244,000, ahead of market expectations for a reading of 235,000 for the highest print since November 2021.

The four-week moving average came to 235,750, an increase of 3,250 from the prior week's unrevised average of 232,500, while the total number of continued weeks claimed for benefits in all programs for the week ending 25 June was 1.40m, an increase of 72,504 from the previous week.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Boeing Co. (BA) $147.15 2.22%
Apple Inc. (AAPL) $148.47 2.05%
Walmart Inc. (WMT) $127.82 1.95%
International Business Machines Corporation (CDI) (IBM) $139.06 1.37%
Intel Corp. (INTC) $37.71 1.34%
Visa Inc. (V) $205.91 0.86%
Home Depot Inc. (HD) $289.48 0.80%
Microsoft Corp. (MSFT) $254.08 0.54%
Unitedhealth Group Inc. (UNH) $502.43 0.24%
Johnson & Johnson (JNJ) $175.68 0.14%

Dow Jones - Fallers

Travelers Company Inc. (TRV) $155.68 -4.68%
JP Morgan Chase & Co. (JPM) $108.00 -3.49%
Goldman Sachs Group Inc. (GS) $281.59 -2.95%
Caterpillar Inc. (CAT) $169.94 -2.26%
American Express Co. (AXP) $136.54 -2.05%
Nike Inc. (NKE) $103.22 -1.80%
Dow Chemical Co. (DOW) $48.90 -1.55%
Chevron Corp. (CVX) $135.92 -1.50%
Salesforce.Com Inc. (CRM) $161.04 -1.50%
Walt Disney Co. (DIS) $91.83 -1.19%

S&P 500 - Risers

QUALCOMM Inc. (QCOM) $141.90 4.62%
Costco Wholesale Corp. (COST) $511.94 4.01%
Applied Materials Inc. (AMAT) $91.67 2.91%
Analog Devices Inc. (ADI) $153.31 2.76%
Microchip Technology Inc. (MCHP) $60.93 2.68%
Equifax Inc. (EFX) $189.42 2.59%
Cintas Corp. (CTAS) $387.13 2.53%
Constellation Brands Inc. Class A (STZ) $251.02 2.47%
Texas Instruments Inc (TXN) $157.85 2.31%
Boeing Co. (BA) $147.15 2.22%

S&P 500 - Fallers

ConAgra Brands Inc (CAG) $33.24 -6.99%
Mosaic Company (MOS) $43.65 -5.74%
CF Industries Holdings Inc. (CF) $80.63 -5.74%
Newmont Corporation (NEM) $54.99 -5.50%
Freeport-McMoRan Inc (FCX) $25.00 -5.45%
Bath & Body Works, Inc. (BBWI) $25.96 -5.29%
Iron Mountain Inc (New) (IRM) $44.71 -5.22%
Everest Re Group Ltd. (RE) $263.14 -4.98%
Under Armour Inc. Class A (UAA) $8.11 -4.92%
Coty Inc. Class A (COTY) $7.07 -4.72%

Nasdaq 100 - Risers

QUALCOMM Inc. (QCOM) $141.90 4.62%
Costco Wholesale Corp. (COST) $511.94 4.01%
Applied Materials Inc. (AMAT) $91.67 2.91%
Analog Devices Inc. (ADI) $153.31 2.76%
Microchip Technology Inc. (MCHP) $60.93 2.68%
Cintas Corp. (CTAS) $387.13 2.53%
Texas Instruments Inc (TXN) $157.85 2.31%
Asml Holdings N.V. (ASML) $456.90 2.21%
Apple Inc. (AAPL) $148.47 2.05%
KLA-Tencor Corp. (KLAC) $319.09 1.91%

Nasdaq 100 - Fallers

Qurate Retail Inc. (QRTEA) $2.10 -9.87%
Expedia Group Inc. (EXPE) $89.43 -3.82%
Booking Holdings Inc. (BKNG) $1,673.91 -3.69%
Meta Platforms Inc. (META) $158.05 -3.33%
Paypal Holdings Inc (PYPL) $69.55 -2.54%
Dish Network Corp. (DISH) $17.14 -2.39%
Trip.com Group Limited (TCOM) $25.50 -2.34%
Baidu Inc. (BIDU) $142.07 -2.20%
Illumina Inc. (ILMN) $177.23 -2.18%
Hasbro Inc (HAS) $79.39 -1.83%