US open: Stocks lower as traders zero in on earnings

dl wall street st new york city nyc nyse stock exchange ny dow jones nasdaq sp finance us usa united states of america — Wall StreetSharecast photo / Josh White

Wall Street stocks were in the red early on Thursday as market participants remained focussed on quarterly earnings figures.

As of 1520 BST, the Dow Jones Industrial Average was down 0.39% at 33,766.10, while the S&P 500 slipped 0.45% to 4,135.69 and the Nasdaq Composite came out the gate 0.33% weaker at 12,117.62.

The Dow Jones opened 130.91 points lower on Thursday, extending losses recorded in the previous session as investors responded to quarterly earnings from the likes of Morgan Stanley.

Tesla was in focus at the open after the electric carmaker revealed that both net income and GAAP earnings had slumped more than 20% year-on-year, while IBM shares traded higher after announcing that margins had expanded.

As far as Thursday's earnings slate was concerned, AT&T beat earnings estimates but posted weaker-than-expected free-cash flow, while American Express delivered profits that fell short of expectations despite its quarterly report pointing to a continued surge in consumer spending.

Shares in homebuilder Dr Horton surged in early trade after the firm said demand had improved throughout the first quarter, Snap-On posted quarterly earnings per share that beat estimates by $0.46 as revenues topped estimates, and tobacco giant Philip Morris lowered its full-year adjusted earnings per share guidance as Q1 earnings contracted despite revenue growth.

Seagate Technology will report after the close.

On the macro front, the US labour market softened a tad more during the week ended 15 April, according to the Department of Labor, which said in seasonally adjusted terms, initial unemployment claims edged up by 5,000 to reach 245,000. Economists had forecast a reading of 242,000.

Elsewhere, factory sector activity in the US mid-Atlantic region softened again unexpectedly in April, according to the Federal Reserve Bank of Philadelphia's regional manufacturing sector index, which declined from a reading of -23.2 for March to -31.3 in April. Economists had penciled in a reading of -20.0.

On another note, the Conference Board's leading index fell 1.2% in March to a reading of 108.4, accelerating from a 0.5% decline in February.

Finally, US existing home sales dropped 2.4% month-on-month in March, according to the National Association of Realtors, falling to a seasonally adjusted annual rate of 4.4m - just short of estimates for a reading of 4.5m. In February, sales rose a downwardly revised 13.8% which was the biggest surge since July 2020.

Later on, Federal Reserve bankers Christopher Waller and Michele Bowman will deliver speeches at 1700 BST and 2000 BST, respectively.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Walgreens Boots Alliance, Inc. (WBA) $35.84 2.90%
International Business Machines Corporation (CDI) (IBM) $126.42 0.08%
Home Depot Inc. (HD) $297.08 0.06%
Dowdupont Inc. (DWDP) $0.00 0.00%
JP Morgan Chase & Co. (JPM) $141.01 -0.15%
Walmart Inc. (WMT) $149.79 -0.15%
Goldman Sachs Group Inc. (GS) $336.30 -0.18%
Visa Inc. (V) $232.06 -0.22%
Coca-Cola Co. (KO) $63.49 -0.30%
Procter & Gamble Co. (PG) $150.75 -0.32%