US close: Stocks mixed amid earnings avalanche, disappointing durable goods

US stocks finished mixed on Thursday, having surged in morning trading after a number of well-received tech results.

Nasdaq 100

20,684.59

12:15 19/11/24

0.71%

145.40

The Dow Jones Industrial Average finished 0.39% higher at 21,796.55, while the S&P 500 was down 0.1% at 2,475.42 and the Nasdaq 100 ended 0.57% softer at 5,917.03.

“A flurry of fresh US highs - aided by the latest record peak from Facebook - contrasted with a sour afternoon for the European markets this Thursday,” said Spreadex analyst Connor Campbell earlier.

"The Dow Jones itself got some 21,750-crossing run-off goodwill from the social media giant’s growth - Facebook posted a staggering 71% rise in Q2 profit - despite the stock not actually being part of the index.”

On the corporate front, Facebook shares rose 2.91% after the company said late on Wednesday that second-quarter profits surged to $3.9bn while revenue rose 44.8% to $9.32bn.

Verizon Communications was also on the front foot, up 7.68% after its quarterly subscription additions beat expectations, while PayPal gained 2.31% after better-than-expected quarterly earnings and as it lifted its outlook.

Dow Chemical edged up 0.21% following better-than-expected second-quarter numbers and Procter & Gamble ticked 1.55% higher after its fourth-quarter results.

On the downside, Twitter slumped 14.13% after its number of monthly active users for the second quarter came in below expectations, while United Parcel Service fell 4.01% despite reporting a stronger-than-expected quarterly profit.

Mastercard slipped 1.57% despite estimate-topping quarterly earnings, and Southwest Airlines flew 4.96% lower after it said second-quarter profits fell 9% on the back of rising operating expenses.

On the data front, the latest figures from the Labor Department showed the number of Americans filing for unemployment benefits rose more than expected last week.

US initial jobless claims were up 10,000 to 244,000 from last week's level, which was revised up by 1,000 to 234,000.

Economists had been expecting a smaller increase to 241,000.

Elsewhere, durable goods order also disappointed, unexpectedly falling in June, by 0.2%, versus expectations for a 0.4% increase.

Since the closing bell a number of earnings dropped, including online retail giant Amazon.com, which reported a 77% fall in quarterly income and indicated a possible operating loss in the current quarter.

The firm put the slump down to heavy investment in video content, and emerging markets such as India.

Its shares were down 3.2% in after-hours trading.

Also making late releases were online travel agency Expedia, which was up 2.79% after-hours after beating analyst expectations and reporting $2.6bn in second quarter revenue, and chipmaker Intel which was 1.43% firmer after-hours following second quarter earnings of 72 cents per share, also ahead of forecasts.

Toy manufacturer Mattel posted a second quarter loss of $56.1m, falling short of expectations and leading to an after-hours decline of 3.99%, while coffee chain Starbucks lost 3.33% after reporting third quarter earnings of $692m, down from $754.1m year-on-year.

Dow Jones - Risers

Verizon Communications Inc. (VZ) $47.81 7.68%
Boeing Co. (BA) $241.00 3.23%
Merck & Co. Inc. (MRK) $63.69 3.06%
Walt Disney Co. (DIS) $110.00 2.86%
Procter & Gamble Co. (PG) $90.68 1.55%
Wal-Mart Stores Inc. (WMT) $79.78 1.12%
Chevron Corp. (CVX) $106.11 0.94%
Coca-Cola Co. (KO) $46.14 0.83%
General Electric Co. (GE) $25.79 0.78%
Caterpillar Inc. (CAT) $114.36 0.75%