Source: Sharecast
Investors also had to contend with a barrage of mixed economic indicators, which included jobless claims rising more than expected and the Philly Fed index dropping into negative territory, while a manufacturing survey from S&P Global and home sales figures beat forecasts.
The Dow and Nasdaq both fell 0.3%, while the S&P 500 slipped 0.4%, registering its fifth straight day in the red.
Thursday's primary focus was on retail giant Walmart, which delivered second-quarter earnings that missed expectations. Revenues climbed 4.8% and adjusted operating income rose 7.2%, but adjusted EPS came in at $0.67, short of the $0.73 expected by analysts and snapping a three-year streak of bottom-line beats. Shareholders largely ignored Walmart raising its full-year guidance – citing strength across store, club, and digital channels – as the shares finished down 4.5%.
Walmart's earnings come hot on the heels of fellow big-box retailer Target's disappointing numbers on Wednesday, with the group reporting yet another quarterly sales decline and revealing that longtime chief executive Brian Cornell will be stepping down from the role. Target shares fell again on Thursday, having now dropped nearly 8% over the past two days.
In other news, all eyes were on Federal Reserve chair Powell, who is due to speak at the central bank's annual economic symposium in Jackson Hole on Friday, with traders hoping to gain further insights into the future of interest rate policy.
Fed funds futures were currently pricing in a more than 80% chance that the central bank cuts interest rates at its September meeting after minutes from FOMC's July meeting showed policymakers were concerned about the state of the labour market and inflation, although most agreed that it was too soon to lower interest rates.
"Jay Powell and more broadly the Fed is coming under increasing pressure from the Trump administration to cut rates rapidly at a time when the Fed has been more or less alone as the only G7 central bank to not cut rates this year," said analyst Michael Hewson from MCH Market Insights.
Retailers under pressure
Walmart and Target were trading firmly lower after their results over the past two days, with well-known names Home Depot, Ross Stores and Costco falling in sympathy. Ross Stores was due to report after the close.
Restaurant and retail chain Cracker Barrel Oil Country Store saw shares drop 7% as the market reacted to the social media backlash against the company's rebranding.
Coty dropped 22% as the cosmetics manufacturer disappointed with a wider quarterly loss than expected and weak guidance for the current year.
Meanwhile, corporate tech solutions groups Workday and Zoom Communications were both set to report their latest quarterly figures after the close, with both stocks registering small gains.
Economic data barrage
On the macro front, the Labor Department reported that initial jobless claims rose to 235,000 last week, up from 224,000 and well ahead of the 225,000 consensus forecast. Notably, continuing claims increased by 30,000 to 1.97m, ahead of the 1.96m print expected by economists and the highest level since November 2021.
The Philadelphia Fed's manufacturing index fell to -0.3 in August, well below estimates of +6.8 and July's +15.9 reading, pointing to a renewed contraction in activity. The new orders index fell 20 points to -1.9 for its first negative reading since April.
The S&P Global manufacturing PMI rose to 53.3 in August from 49.8 in July, well above market expectations of 49.5. The services PMI ticked lower to 55.4 from the year-to-date high of 55.7 in July, but was still above consensus estimates of 54.2. As a result, the composite PMI inched up to 55.4 from 55.1 for the 31st consecutive monthly growth.
Finally, US existing home sales rose by 2% to a seasonally-adjusted annualised rate of 4.01m in July, according to the National Association of Realtors, the sharpest increase since February and above expectations of a 3.92m print.
Dow Jones - Risers
Merck & Co. Inc. (MRK) $86.08 1.68%
Chevron Corp. (CVX) $155.55 1.52%
Unitedhealth Group Inc. (UNH) $303.35 1.17%
Walgreens Boots Alliance, Inc. (WBA) $12.19 0.86%
Cisco Systems Inc. (CSCO) $67.02 0.36%
Travelers Company Inc. (TRV) $274.75 0.19%
Johnson & Johnson (JNJ) $178.92 0.05%
McDonald's Corp. (MCD) $313.05 0.04%
Dow Jones - Fallers
Walmart Inc. (WMT) $97.96 -4.49%
Dow Chemical Co. (DOW) $23.67 -1.62%
Intel Corp. (INTC) $23.50 -1.41%
International Business Machines Corporation (CDI) (IBM) $239.40 -1.30%
Microsoft Corp. (MSFT) $504.24 -1.27%
Apple Inc. (AAPL) $224.90 -1.20%
Home Depot Inc. (HD) $397.70 -1.01%
Walt Disney Co. (DIS) $116.21 -0.71%
Goldman Sachs Group Inc. (GS) $715.40 -0.66%
Caterpillar Inc. (CAT) $417.49 -0.64%
S&P 500 - Risers
Nektar Therapeutics (NKTR) $28.00 6.28%
Packaging Corp. Amer (PKG) $210.32 6.17%
Analog Devices Inc. (ADI) $246.95 4.76%
Regeneron Pharmaceuticals Inc. (REGN) $598.16 3.92%
Hewlett Packard Enterprise (HPE) $21.82 3.71%
Ipg Photonics Corp. (IPGP) $78.55 2.87%
Western Union Co. (WU) $8.49 2.41%
Booking Holdings Inc. (BKNG) $5,710.74 2.17%
International Paper Co. (IP) $48.01 2.17%
Gap Inc. (GAP) $21.19 2.17%
S&P 500 - Fallers
Coty Inc. Class A (COTY) $3.81 -21.60%
Walmart Inc. (WMT) $97.96 -4.49%
United Airlines Holdings Inc (UAL) $97.18 -4.11%
American Airlines Group (AAL) $12.57 -4.05%
Edison International (EIX) $53.81 -3.84%
Danaher Corp. (DHR) $203.90 -3.55%
IQVIA Holdings Inc. (IQV) $185.24 -3.46%
Allstate Corp (The) (ALL) $206.50 -3.31%
Mettler Toledo International (MTD) $1,277.75 -2.95%
Gilead Sciences Inc. (GILD) $116.14 -2.85%
Nasdaq 100 - Risers
Analog Devices Inc. (ADI) $246.95 4.76%
Qvc Group Inc Series A (QVCGA) $4.26 4.67%
Regeneron Pharmaceuticals Inc. (REGN) $598.16 3.92%
Booking Holdings Inc. (BKNG) $5,710.74 2.17%
Liberty Global plc Series C (LBTYK) $11.54 2.12%
Texas Instruments Inc (TXN) $200.66 1.68%
NetEase Inc. Ads (NTES) $131.87 1.53%
Microchip Technology Inc. (MCHP) $66.09 1.40%
Incyte Corp. (INCY) $86.53 1.27%
Liberty Global plc Series A (LBTYA) $11.45 1.15%
Nasdaq 100 - Fallers
American Airlines Group (AAL) $12.57 -4.05%
Gilead Sciences Inc. (GILD) $116.14 -2.85%
Ross Stores Inc. (ROST) $145.62 -2.70%
Tesla Inc (TSLA) $320.11 -2.60%
Starbucks Corp. (SBUX) $88.56 -2.55%
Sirius XM Holdings Inc (SIRI) $22.26 -2.40%
Intuitive Surgical Inc. (ISRG) $469.88 -2.34%
Costco Wholesale Corp. (COST) $969.68 -2.22%
Lam Research Corp. (LRCX) $98.41 -2.11%
Asml Holdings N.V. (ASML) $735.40 -2.11%
