US shutdown: Stocks retreat as blue chip recovery disappoints, oil prices rise
(Sharecast News) – US stocks finished modestly lower on Thursday, with the S&P 500 and Nasdaq both retreating from record highs, as a string of disappointing earnings and weakness in the software sector weighed on the indices.
Another rise in oil prices also weighed heavily on sentiment as political tensions in the Middle East remain entrenched.
The Dow and S&P 500 both fell 0.4%, while the Nasdaq fell 0.9%.
“Traders are starting to focus more on action than words on social media and there was a lot of action today, as both Iran and the US flex their muscles in the Strait of Hormuz,” said AJ Bell’s head of financial research Danni Hewson.
“With companies now factoring in the war’s impact on earnings growth, it’s clear that this is past the point where investors hoped things would return to ‘normal’ quickly.”
Donald Trump has said there is “no time” to end the war on Iran, and Iran’s non-commitment has reportedly led JD Vance to cancel his trip to join peace talks. Iranian media also reported that the Iranian negotiators refused to attend, calling the talks with the US “a waste of time”.
Investors were bracing for a report that the US military had seized at least three Iranian-flagged tankers in Asian waters. According to Reuters, citing transport and security sources, the US was redirecting them away from their positions near India, Malaysia and Sri Lanka.
Brent crude rose 3.1% to $105.07 a barrel, marking its fourth straight gain, while WTI settled 3.1% higher at $95.85 a barrel.
On the big front, the Chicago Federal Reserve’s national jobs index fell to -0.20 in March, its lowest level since November, down from +0.03 revised in February as three of the four key categories declined.
Initial weekly jobless claims rose by 6,000 to 214,000 last week, the Labor Department said, from the previous week’s revised increase of 208,000 and ahead of expectations for a reading of 212,000. Ongoing claims rose by 12,000 to 1.82m, while the four-week moving average, which aims to remove week-to-week volatility, rose by 750 to 210,750.
Finally, the S&P Global manufacturing PMI rose to 54.0 in April, up from 52.3 in March and beating market expectations of 52.5, according to a preliminary reading. This marked the strongest improvement in factory business conditions since May 2022. The services PMI rose to 51.3, up from 50.3 and well above market expectations of 50.
Tech stocks tank
Electric car manufacturer Tesla was in the red after posting first-quarter earnings after Wednesday’s close that came in ahead of expectations, although revenue fell as the company continued to face pressure in its core auto business.
Both IBM again Service Now beating forecasts for their first-quarter profits, although share prices for each company fell as analysts highlighted disappointing forecasts.
Software stocks dominate the Nasdaq faller list on renewed fears about the impact of AI on business models, Workday, Autodesk, Salesforce, Intuit, Adobe, Gen Digital again Check Point Software Technologies everything is registered as a huge loss.
The acquisition of Warner Bros fell as shareholders “resoundingly” approved the company’s proposed $110bn merger Paramount Skydance.
First quarter results from American Express beat market expectations as revenue rose by double-digits on the back of strong business from its core customer base, although shares retreated after hitting two-month highs in the previous session.
American Airlines ended lower after the carrier cut its profit forecasts after an extra $4bn in fuel costs, as first-quarter revenue rose to a record high.
Blackstone reported first-quarter earnings ahead of expectations, as strong inflows and asset sales helped ease investor warnings about the country’s turmoil and worries in parts of the sovereign debt market. Shares in the world’s largest alternative asset manager ended sharply lower.
Currently, Honeywell and fell as second-quarter sales and earnings came in below market expectations, with disruptions related to the Middle East conflict weighing on demand and project delays.
Dow Jones – Risers
Caterpillar Inc. (CAT) $835.24 3.26%
Verizon Communications Inc. (VZ) $47.22 2.70%
Coca-Cola Co. (KO) $76.28 2.21%
Apple Inc. (AAPL) $273.43 2.13%
Johnson & Johnson (JNJ) $230.65 2.01%
Procter & Gamble Co. (PG) $145.71 2.00%
Travelers Company Inc. (TRV) $307.33 1.87%
Merck & Co. Inc. (MRK) $114.62 1.53%
Amgen Inc. (AMGN) $348.62 1.30%
Boeing Co. (BA) $234.15 1.24%
Dow Jones – Fallers
Salesforce.Com Inc. (CRM) $173.30 -8.69%
International Business Machines Corporation (CDI) (IBM) $231.08 -8.25%
American Express Co. (AXP) $318.55 -4.31%
Microsoft Corp. (MSFT) $415.75 -2.58%
Nike Inc. (ONLY) $44.78 -1.97%
Cisco Systems Inc. (CSCO) $88.59 -1.29%
The Walt Disney Co. (DIS) $103.65 -1.12%
Visa Inc. (V) $308.88 -0.77%
Dow Chemical Co. (DOW) $38.53 -0.72%
3M Co. (MMM) $144.84 -0.64%
S&P 500 – Risers
United Rentals Inc. (URI) $986.78 22.92%
Texas Instruments Inc (TXN) $282.23 19.69%
Microchip Technology Inc. (MCHP) $90.64 10.59%
Union Pacific Corp. (UNP) $271.26 8.77%
Comcast Corp. (CMCSA) $31.64 8.32%
Norfolk Southern Corp. (NSC) $321.44 7.75%
NextEra Energy Inc. (NEE) $96.25 6.94%
Analog Devices Inc. (ADI) $403.88 6.59%
Advanced Micro Devices Inc. (AMD) $305.33 5.88%
CSX Corp. (CSX) $46.18 5.87%
S&P 500 – Fallers
Freeport-McMoRan Inc (FCX) $61.48 -12.62%
Thermo Fisher Scientific Inc. (TMO) $466.70 -9.20%
Salesforce.Com Inc. (CRM) $173.30 -8.69%
IQVIA Holdings Inc. (IQV) $160.68 -8.29%
International Business Machines Corporation (CDI) (IBM) $231.08 -8.25%
Cognizant Technology Solutions Corp. (CTH) $55.10 -8.21%
Expedia Group Inc. (EXPE) $250.37 -8.19%
Robert Half Inc. (RHI) $27.20 -7.70%
Revvity, Inc. (RVTY) $87.15 -7.56%
VF Corp. (VFC) $20.02 -7.10%
Nasdaq 100 – Risers
Texas Instruments Inc (TXN) $282.23 19.69%
Microchip Technology Inc. (MCHP) $90.64 10.59%
Comcast Corp. (CMCSA) $31.64 8.32%
Analog Devices Inc. (ADI) $403.88 6.59%
CSX Corp. (CSX) $46.18 5.87%
Sirius XM Holdings Inc (SIRI) $28.00 4.24%
Hasbro Inc (HAS) $96.58 4.07%
Micron Technology Inc. (MU) $481.72 3.98%
Broadcom Inc. (AVGO) $419.94 3.16%
Applied Materials Inc. (AMAT) $403.91 2.60%
Nasdaq 100 – Fallers
Qvc Group Inc Series A (QVCGA) $0.34 -13.49%
Workday, Inc. (DAY) $114.67 -11.92%
Cognizant Technology Solutions Corp. (CTH) $55.10 -8.21%
Expedia Group Inc. (EXPE) $250.37 -8.19%
Autodesk Inc. (ADSK) $231.98 -6.68%
Booking Holdings Inc. (BKNG) $176.75 -6.53%
Intuit Inc. (PERSON) $383.30 -6.51%
Adobe Systems Inc. (ADBE) $238.98 -6.50%
Gen Digital Inc. (GEN) $18.81 -5.95%
Check Point Software Technologies Ltd. (CHKP) $133.82 -5.25%
