Big Tech rises ahead of July's final session
Shares of Amazon, Apple and Facebook are up significantly after their earnings reports, potentially setting up the market for a strong start during Friday's session. Here's where the indexes stood as of 4 p.m.
- S&P 500 closed down 0.38% on Thursday, but was up 0.95% for the week and 4.71% month to date
- Nasdaq Composite closed up 0.43% on Thursday, pushing its gains to 2.17% for the week and 5.26% for July
- The Dow closed down 0.85% on Thursday and is down 0.59% for the week. It has gained 1.94% month to date.
Follow along with CNBC's coverage of market futures and ETFs here. — Gina Francolla, Jesse Pound
Big Tech gains $200 billion of market cap after earnings
The early after hours gains for Apple, Amazon, Alphabet and Facebook — four of the largest stocks in the world — totaled about $200 billion in market cap. That pushes the cumulative market cap of the four companies to about $5.1 trillion from $4.9 trillion. — Jesse Pound
Apple beats estimates, announces stock split
Apple beat Wall Street estimates on the top and bottom lines for its second quarter and announced a four-for-one stock split. The company reported $2.58 in earnings per share and $59.69 billion in revenue. Analysts surveyed by Refinitiv were looking for earnings of $2.04 per share and revenue of $52.25 billion. Shares rose more than 5% in extended trading. — Jesse Pound
Strategist praises Amazon's 'profit discipline'
Andrew Smith, chief investment strategist at Delos Capital Advisors, praised Amazon's quarterly results. The company reported earnings of $10.30 per share vs. $1.46 expected by analysts surveyed by Refinitiv.
"Amazon reported a tremendous quarter, well above expectations, as they saw gains in the majority of their business units," Smith said. "Amazon demonstrated not only profit discipline during a period of economic disruption, but proof that the tech company of today can withstand economic stress." — Pippa Stevens, Jesse Pound
Nasdaq ETF jumps nearly 1% as Facebook, Amazon and Alphabet rise on earnings
The exchange-traded fund that tracks the Nasdaq 100 index rose in after-hours trading on the back of strong earnings reactions from Facebook, Amazon and Alphabet. The Invesco QQQ Trust ETF traded 0.9% higher after the bell. Facebook, which reported better-than-expected earnings, rose nearly 6%. Amazon and Alphabet traded 4% higher and 2.1%, respectively. —Fred Imbert
Alphabet tops estimates
Shares of Alphabet moved higher in extended trading after the company beat top and bottom line estimates in the second quarter. The company earned $10.13 per share, compared with the $8.21 expected by analysts polled by Refinitiv. Revenue came in at $38.30 billion, ahead of the expected $37.37 billion.
Amazon jumps on revenue beat
Shares of Amazon rose more than 4% in extended trading after the e-commerce giant reported $88.91 billion of revenue for the second quarter, above the $81.56 billion expected by analysts, according to Refinitiv. — Jesse Pound
Amazon jumps on earnings
Facebook revenue jumps 11%
Facebook said that revenue grew 11% in the second quarter amid the coronavirus pandemic. The company reported a profit of $1.80 per share, which was ahead of the $1.39 expected by analysts, according to estimates from Refinitiv. Revenue came in at $18.7 billion, exceeding the $17.4 billion consensus estimate.
Facebook releases earnings
Stocks end the session lower
Stocks fell on Thursday as economic data weighed on the market. The Dow dropped 223 points for a loss of 0.8%, and is now on track to finish the week lower. The S&P dipped 0.37%. The Nasdaq Composite, however, rose 0.43%, pushed higher by gains in Apple, Amazon, Facebook and Alphabet. All four companies will release their quarterly results after the market closes. - Pippa Stevens
Gold set to break longest winning streak since end of 2017
Spot gold dipped 0.9% to $1,952.30 per ounce, and was set to break its longest winning streak since December 2017. U.S. gold futures closed 0.6% lower at $1,942.30, turning in its first negative day in 10. Still, gold is up 7.88% this month, on pace for its fifth straight positive month for the first time since December 2010. — Yun Li, Gina Francolla
Expectations tempered for a big rebound after epic GDP slide
U.S. economic growth saw its biggest dip ever in the second quarter, and while the worst may be over that doesn't mean the future looks particularly bright. Recent economic data suggest that the labor market is still a long way from full employment, while other indicators show a slowing in consumer spending. "Over the last six weeks, the economy has begun to move sideways and is beginning to look as if it is stalling out," said Joseph Brusuelas, chief economist at RSM. Most economists, including those at the White House, have been expecting that the slide would turn around and provide a sharp rebound. Those expectations are being tempered. — Jeff Cox
Final hour of trading: Nasdaq rises ahead of Big Tech earnings
The Nasdaq Composite outperformed the Dow and S&P 500, rising 0.5% as shares of Amazon, Apple, Facebook and Alphabet traded higher ahead of their earnings releases. The Dow, meanwhile, slid more than 200 points and the S&P 500 dipped 0.4%. —Fred Imbert
Oil drops 3%, but bounces from lowest level of the day
Oil prices moved lower on Thursday as a rising number of Covid-19 cases sparked fears of soft demand. West Texas Intermediate, the U.S. oil benchmark, settled $1.35, or 3.27%, lower at $39.92 per barrel. Earlier in the session WTI traded as low as $38.72. Meanwhile international benchmark dipped 81 cents, or 1.85%, to $42.94 per barrel.
"WTI prices continue to oscillate close to the 40 dollars per barrel level, as the market frets over the pace of economic recovery and uncertainty over lifting or re-imposing lockdowns," said Darwei Kung, head of commodities and portfolio manager at DWS. "The positive news flow on the development of vaccines is supportive for oil prices but the surge in new Covid-19 infections in the United States and government data showing weakening fuel demand this week have had the opposite effect," he added. - Pippa Stevens
Stocks hitting new all-time highs
Amid a broad market decline, some stocks did rise to new all-time highs during Thursday's session. Dow component Procter & Gamble hit a record, as did UPS on the back of strong earnings. Chip stocks including Advanced Micro Devices, Lam Research and Qualcomm all rose to new intraday all-time highs, with shares of e-commerce company Wayfair also notching a record. - Chris Hayes, Pippa Stevens
UPS — Shares of the delivery and logistics giant jumped more than 15% on the back of better-than-expected results for the previous quarter. The company said demand for home delivery drove the company's results.
Qualcomm — Shares of the semiconductor company soared on Thursday morning after the company reported better-than-expected earnings for its fiscal third quarter and announced a settlement and licensing agreement with Huawei.
See more movers here. — Jesse Pound
Tech stocks lead Nasdaq higher
Shares of Facebook, Amazon, Alphabet and Apple — companies that are all slated to report earnings after the bell — turned around in midday trading and lifted the Nasdaq Composite into positive territory. Amazon gained more than 1%. Alphabet and Apple rose 0.4% and 0.8%, respectively. Facebook hovered around the flat line. —Fred Imbert
Decliners outpacing advancers 3-1 at NYSE
About three stocks traded lower for every advancer at the New York Stock Exchange as concerns about the state of the economy dented market sentiment. Overall 2,049 NYSE-listed names fell while 830 stocks advanced, according to FactSet. —Fred Imbert
Markets at midday: Dow drops 300 points ahead of Big Tech earnings
Stocks were under pressure around midday as traders braced for a Big Tech earnings deluge. The Dow slid 306 points, or 1.2%. The S&P 500 dropped 0.8% and the Nasdaq Composite dipped 0.1%. Sentiment was also dampened after the U.S. government reported the country's largest one-quarter economic contraction on record. —Fred Imbert
Nasdaq 100 on pace for another 4-month winning streak
The Nasdaq 100 fell 0.3% on Thursday, but the tech-heavy index was still up 4.7% for the month, which put it on pace for its fourth straight monthly gain. Data from Instinet's Frank Cappelleri showed this would be the Nasdaq 100's 11th four-month winning streak since the 2009 lows. "The current four month run is +36%, the largest since the period ending February, 2000 (+62%)," Cappelleri said in a note. "While it's way too early to make that call with the index still within striking distance of another new high, it's hard to ignore how depressed the SPX continues to be vs. the NDX." —Fred Imbert
Oil drops 5%, breaking below $40 per barrel
Oil prices declined on Thursday as weak economic data and a rising number of Covid-19 cases weighed on prices. West Texas Intermediate, the U.S. oil benchmark, slid $2.46, or 5.9%, to $38.81 per barrel. International benchmark Brent crude traded $2.29, or 5.2%, lower at $41.46 per barrel.
"Covid-19 is the elephant in the room and the US death toll passing the milestone of 150,000 has spread concern to every kind of market, and commodities too," said Bjornar Tonhaugen, head of oil markets at Rystad Energy. "Traders, who have been brushing away so far the reports of new infections, now started to acknowledge that the danger to oil demand's recovery is very real."
Thursday's decline comes as traders prepare for an increase in oil production when OPEC and its oil-producing allies begin tapering their supply cuts on August 1. — Pippa Stevens
Sell-off accelerates with Dow falling 500 points
The market sell-off deepened in morning trading with the Dow dropping more than 500 points. The S&P 500 fell 1.5% as Big Tech shares slid before earnings after the bell. Shares of Facebook and Alphabet fell more than 1% each, while Amazon and Apple slid 0.3% and 0.9%, respectively. The Nasdaq Composite last traded 0.9% lower. — Yun Li
Bank stocks fall as yields dip
Stocks decline at the open as economic data weighs
Stocks moved lower out of the gate on Thursday as investors digested the 32.9% drop in GDP during the second quarter — the largest decline on record. The Dow Jones Industrial Average slid 310 points for a loss of 1.1%. The S&P 500 and Nasdaq Composite shed 1.0% and 0.8%, respectively. Amazon, Apple, Facebook and Alphabet all moved lower ahead of the companies' hotly anticipated earnings results after the bell. - Pippa Stevens
Cramer says Trump election tweet 'sows chaos'
CNBC's Jim Cramer said that tweets from President Trump like the one on Thursday morning that suggested delaying the election hurt the stock market. The "Mad Money" host said that Trump suggesting the election can't be held "safely" contradicts bullish statements made by the president about vaccine development.
"It sows chaos, and chaos is bad for the stock market," Cramer said on "Squawk on the Street." — Jesse Pound
Market believes the 'future is better,' says investor
David Bahnsen, chief investment officer at The Bahnsen Group, said markets didn't move sharply lower following the record GDP drop in the second quarter due the backwards-looking nature of economic data.
"The market's fundamental task is looking at economic data with a view to the future and pricing in that impact to corporate profits," he said. "Investors should be prepared for a choppy process of data digestion, but not be surprised that the market feels the future is better than the present and that unprecedented stimulus and liquidity exist to drive valuations." - Pippa Stevens
Jobless claims top 1.4 million
Initial weekly jobless claims last week came in at 1.434 million, according to the Labor Department. Economists surveyed by Dow Jones expected 1.45 million. Continuing claims rose to just over 17 million from roughly 16.2 million. Initial claims have been above 1 million every week since the pandemic caused major economic restrictions in the U.S. — Jesse Pound
Here are Thursday's biggest analyst calls of the day: Target, L Brands, Shopify, Amazon & more
- Canaccord upgraded Blue Apron to buy from hold.
- Citi upgraded American Eagle Outfitters to buy from neutral.
- BMO raised its price target on Amazon to $3,500 from $2,850.
- MKM initiated Target as sell.
- Citi downgraded L Brands to sell from neutral.
- Rosenblatt raised its price target on Shopify to $1,400 from $860.
- Morgan Stanley initiated MSG Sports as overweight.
- Evercore ISI upgraded Anheuser-Busch InBev to outperform from in line.
Pro Subscribers read more here. - Michael Bloom
Q2 GDP drops most on record
Second quarter GDP fell 32.9% for the largest decline on record as the pandemic hit markets. The number was, however, lower than the 34.7% decline expected by economists surveyed by Dow Jones. - Jeff Cox, Pippa Stevens
Democrats, Republicans split over coronavirus stimulus bill with jobless benefits to expire Friday
Democrats rejected a last-ditch effort from the White House to pass a short-term coronavirus relief bill as talks between top lawmakers failed days before the expiration of enhanced jobless benefits.
With the $600 weekly federal unemployment benefit set to end on Friday, President Donald Trump had hoped to pass a narrower, stopgap bill until a broader agreement could be reached. But White House Chief of Staff Mark Meadows made it clear that the two sides are far from a compromise.
"We're nowhere close to a deal," he said Wednesday after a meeting with Treasury Secretary Steven Mnuchin, House Speaker Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y., according to reporters at the Capitol.
Pelosi rejected the "skinny bill" earlier in the week and on Wednesday reiterated her support for the $3.5 trillion package her chamber passed in May, saying she wants a "comprehensive" bill. — Thomas Franck
Johnson & Johnson reports positive vaccine results in pre-clinical trial
Johnson & Johnson announced that its Covid-19 vaccine candidate produced a robust immune response to the virus in macaque monkeys with just a single dose in preclinical trials. The data was published in Nature on Thursday morning. Trials on human subjects have already begun. The company's shares rose 2% in premarket trading. — Jesse Pound
Largest GDP decline on record expected
The U.S. likely saw the biggest economic drop in its history thanks to the coronavirus pandemic, and just how bad it was will be quantified when the government releases its first look at second-quarter gross domestic product. Economists surveyed by Dow Jones expect a plunge of 34.7%, far worse than anything the nation has seen going back at least to 1879, according to CNBC research. The previous low point is believed to be a 28.6% slide in the first quarter of 1921. Along with the GDP report, markets will get a look at the latest reading on jobless claims. Another 1.45 million Americans filed first-time claims for unemployment insurance, according to Dow Jones estimates. That would mark the 19th straight week of claims exceeding 1 million. — Jeff Cox
Big Tech falters ahead of earnings
Shares of Big Tech names moved lower during premarket trading on Thursday, ahead of the companies' earnings results after the market closes.
Facebook, Apple and Alphabet each declined by about 1%, while Amazon fell 0.7%.
Traders will be closely watching the reports given the outsized influence these companies have on the market. The four are worth nearly $5 trillion combined. - Pippa Stevens
UPS soars after earnings beat
Shares of UPS jumped more than 10% in premarket trading after the shipping company blew past Wall Street estimates for its second quarter results. The company reported $2.13 in adjusted earnings per share and $20.5 billion of revenue. Analysts surveyed by Refinitiv were expecting $1.07 in earnings per share and $17.5 billion of revenue. The company's CEO cited "changes in demand that emerged from the pandemic" for the strong growth. — Jesse Pound
Futures point to losses at the open
U.S. stock index futures fell on Thursday ahead of the opening bell, as the Street awaited key economic data, as well as earnings from Big Tech names including Apple, Amazon, Alphabet and Facebook after the bell.
Dow Jones Industrial Average futures fell 240 points, or 0.9%. The move implied a loss of about 230 points at the open. S&P 500 futures lost 1%, while Nasdaq-100 futures dropped 1.1%.
At 8:30 am E.T. GDP for the second quarter will be released, with economists forecasting a decline of 34.7%, according to Dow Jones, as Covid-19 roiled global economies.
The latest weekly jobless claims data will also be released at 8:30 am E.T. The number is expected to top 1 million for the nineteenth straight week. - Pippa Stevens