US close: Stocks sharply lower following tech earnings, PCE reading

(Sharecast News) - Wall Street stocks closed sharply lower on Thursday as market participants were again zeroed in on Q3 earnings and a number of key data points. At the close, the Dow Jones Industrial Average was down 0.90% at 41,763.46, while the S&P 500 lost 1.86% to 5,705.45 and the Nasdaq Composite saw out the session 2.76% weaker at 18,095.15.

The Dow closed 378.08 points lower on Thursday, extending losses recorded in the previous session after a preliminary GDP reading showed the US economy had grown at a 2.8% annualised clip in Q3, falling short of the 3.1% print expected by analysts.

Corporate earnings were again in focus on Thursday, with Meta Platforms trading lower after missing expectations for user growth and warning that capital expenditures would increase in 2025, while Microsoft issued revenue guidance that disappointed investors.

After the bell, tech earnings were again in focus, with Apple posting better-than-expected quarterly earnings but said earnings had been impacted by a one-time charge related to the reversal of European General Court decision that will require it to pay €13.0bn in back taxes to the Irish government, while Amazon also said quarterly earnings beat expectations after its cloud and advertising units showed strong growth.

On the macro front, US employers announced 55,597 job cuts in October, according to Challenger, Gray and Christmas, down from September's reading of 72,821 but markedly higher than 36,836 at the same time a year earlier.

Elsewhere, Americans lined up for unemployment benefits at a decelerated pace in the week ended 26 October, according to the Labor Department. Initial jobless claims fell by 12,000 to 216,000 last week, well below market expectations for a reading of 230,000, reinforcing the view that the US labour market remains resilient to the Federal Reserve's restrictive interest rate policy, adding weight to the argument that the central bank will likely steer clear of making any further aggressive rate cuts at its upcoming meetings.

On another note, the US personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, rose 0.2% in September, according to the Commerce Department, putting the 12-month inflation rate at 2.1%.

Finally, the Chicago Fed's purchasing managers index sank to 41.6 in October, according to the Institute of Supply Management, down from 46.6 in September and well and truly short of expectations for a reading of 47.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Walgreens Boots Alliance, Inc. (WBA) $9.46 2.38% Verizon Communications Inc. (VZ) $42.13 2.06% Amgen Inc. (AMGN) $320.16 1.46% Walt Disney Co. (DIS) $96.20 1.18% Nike Inc. (NKE) $77.13 0.89% International Business Machines Corporation (CDI) (IBM) $206.72 0.89% 3M Co. (MMM) $128.47 0.71% Walmart Inc. (WMT) $81.95 0.69% Chevron Corp. (CVX) $148.82 0.52% Home Depot Inc. (HD) $393.75 0.31%

Dow Jones - Fallers

Microsoft Corp. (MSFT) $406.35 -6.05% Intel Corp. (INTC) $21.52 -3.50% Boeing Co. (BA) $149.31 -3.23% Merck & Co. Inc. (MRK) $102.32 -2.39% Apple Inc. (AAPL) $225.91 -1.82% Salesforce.Com Inc. (CRM) $291.37 -1.70% Travelers Company Inc. (TRV) $245.94 -1.66% Cisco Systems Inc. (CSCO) $54.77 -1.48% American Express Co. (AXP) $270.44 -1.46% Goldman Sachs Group Inc. (GS) $517.95 -1.26%

S&P 500 - Risers

Entergy Corp. (ETR) $154.65 15.16% International Paper Co. (IP) $55.54 13.28% Ametek Inc. (AME) $183.52 8.54% Gen Digital Inc. (GEN) $29.11 8.18% Altria Group Inc. (MO) $54.46 7.84% ConocoPhillips (COP) $109.54 6.37% Norwegian Cruise Line Holdings Ltd (NCLH) $25.34 6.29% Marathon Oil Corp. (MRO) $27.70 6.21% Xcel Energy Inc. (XEL) $66.81 5.96% Bristol-Myers Squibb (BMY) $55.77 5.91%

S&P 500 - Fallers

Estee Lauder Co. Inc. (EL) $68.94 -20.90% Teleflex Inc. (TFX) $201.06 -14.52% MGM Resorts International (MGM) $36.87 -10.96% Idexx Laboratories Inc. (IDXX) $406.92 -9.79% Regeneron Pharmaceuticals Inc. (REGN) $838.20 -9.17% eBay Inc. (EBAY) $57.51 -8.17% Ball Corp (BALL) $59.35 -7.70% VF Corp. (VFC) $20.71 -6.96% Everest Group (EG) $356.84 -6.42% Intercontinental Exchange Inc (ICE) $155.95 -6.40%

Nasdaq 100 - Risers

Gen Digital Inc. (GEN) $29.11 8.18% Booking Holdings Inc. (BKNG) $4,676.25 4.76% Comcast Corp. (CMCSA) $43.67 3.39% Walgreens Boots Alliance, Inc. (WBA) $9.46 2.38% Dollar Tree Inc (DLTR) $64.64 2.10% JD.com, Inc. (JD) $40.62 1.47% Amgen Inc. (AMGN) $320.16 1.46% Paypal Holdings Inc (PYPL) $79.30 1.38% Electronic Arts Inc. (EA) $150.85 1.15% Mercadolibre Inc. (MELI) $2,037.18 0.81%

Nasdaq 100 - Fallers

Idexx Laboratories Inc. (IDXX) $406.92 -9.79% Regeneron Pharmaceuticals Inc. (REGN) $838.20 -9.17% eBay Inc. (EBAY) $57.51 -8.17% Microsoft Corp. (MSFT) $406.35 -6.05% Cadence Design Systems Inc. (CDNS) $276.12 -4.79% Nvidia Corp. (NVDA) $132.76 -4.72% Micron Technology Inc. (MU) $99.65 -4.26% Synopsys Inc. (SNPS) $513.61 -4.25% Meta Platforms Inc. (META) $567.58 -4.09% Biogen Inc (BIIB) $174.00 -3.96%