The Dow Jones Industrial Average jumped for a ninth consecutive day on Thursday after better-than-expected earnings results from drugmaker Johnson & Johnson. It was the Dow's best daily winning streak since 2017.
But the broader market suffered after post-earnings declines in trader favorites Netflix and Tesla.
The 30-stock Dow, which has less dependence on tech stocks, added 163.97 points, or 0.47%, to close at 35,225.18. The S&P 500 slipped 0.68% to 4,534.87. The Nasdaq Composite fell 2.05% to finish the session at 14,063.31. The Dow's climb is the widest outperformance by the blue-chip indicator over the tech-heavy Nasdaq 100 index since February of last year.
Shares of Dow constituent Johnson & Johnson rose 6% after the drugmaker hiked its full-year guidance along with posting quarterly results that topped Wall Street's estimates. Another Dow name, insurer Travelers, beat analyst estimates for revenue in the quarter, boosting the shares.
But the earnings results were uneven and that dragged down the S&P 500 and Nasdaq. Shares of Netflix dropped more than 8% after the streaming giant posted revenue that fell short of analysts' estimates. Expectations were high into the report with the stock up nearly 50% on the year.
Tesla, meanwhile, tumbled 9.7%. Late Wednesday, CEO Elon Musk and other executives said on the company's earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.
Of the S&P 500 companies that have reported earnings thus far, 74% have exceeded expectations, FactSet data shows. The strength in corporate earnings have created optimism for a soft landing for the economy.
"Although the number of bear market prognosticators has certainly thinned out given the market's impressive run, there remains a diehard contingent that have viewed recent trends as nothing more than a bear market rally," BMO Capital Markets' Brian Belski said in a note from the firm. "Unfortunately for this crowd, history does not appear to be on their side."