Dow loses more than 200 points Thursday to snap historic 13-day rally: Live updates

The major averages closed lower Thursday, with a historic 13-day rally for the Dow Jones Industrial Average coming to an end. The 30-stock index fell 237.40 points, or by 0.67%, to 35,282.72.

The S&P 500 was lower by 0.64% to 4,537.41. At one point during the day, the broader index topped the key 4,600 level for the first time since March 2022.

Meanwhile, the Nasdaq Composite slid 0.55% to 14,050.11.

— Sarah Min

The S&P 500 has been on a stellar rally of late that has taken it to 4,600 for the first time in more than a year. However, the broader market index is now showing signs of exhaustion, according to Jonathan Krinsky of BTIG.

"As has been the case for the last couple of weeks, there are signals the rally should be getting tired," the firm's chief market's technician wrote. "SPX cleared 4600 off the open, which brought it into the highs from March '22. A flat or red close today would be notable after the gap-up and 4600 test."

— Fred Imbert, Michael Bloom

The major averages are lower shortly into the final hour of trading.

The Dow Jones Industrial Average dropped by 205 points, or 0.58%. The S&P 500 declined 0.57%, and the Nasdaq Composite fell 0.55%.

— Sarah Min

After Wednesday's Fed meeting, one bond trader thinks the end of the central bank's tightening campaign is drawing closer.

"We're getting closer to the endgame," said Gregory Faranello, head of U.S. rates strategy at AmeriVet Securities. "As we head through the summer … those high, high inflation prints from last year will start to roll off."

He noted that June 2022 has marked the peak for inflation, when the consumer price index rose 9.1% from the year-earlier period.

"I think there's a stronger possibility that this turns out to be the last rate hike. But we're going to have to wait and see. I don't think you can fully rule out one more rate hike after this one," Faranello said.

— Fred Imbert

Second-quarter earnings season is nearly halfway through. So far, 44% of S&P 500 companies have reported results, or 219 companies.

This season, earnings are expected to fall 6.8% from a year ago, with revenues expected to be down 0.6%. That's according to the blended growth rate and Refinitiv data.

On the earnings front, 78% of companies have topped expectations, while 62% have beaten revenue estimates. The energy sector is slated for the biggest decline in earnings year over year.

— Samantha Subin, Robert Hum

The Dow Jones Industrial Average was last trading at session lows Thursday afternoon. Earlier in the day, the 30-stock index was higher by 125 points, but those gains evaporated. Shares of Honeywell weighed on the benchmark, down more than 4%.

The Dow was last down 0.2%.

— Sarah Min

Royal Caribbean outpaced the broader market after the cruise line beat expectations on the top and bottom lines in its most recent earnings report. Shares were last higher by more than 8%.

The cruise line posted second-quarter adjusted earnings of $1.82 per share on revenue of $3.52 billion. Analysts polled by Refinitiv had expected per-share earnings of $1.55 on revenue of $3.41 billion.

Other cruise line stocks also popped in afternoon trading. Shares of Carnival and Norwegian Cruise Line Holdings were last up by more than 4% and 5%, respectively.

Royal Caribbean is higher this year by more than 120%.

— Sarah Min

Earnings reports are causing big swings for many stocks on Wall Street today. Here are some under-the-radar moves:

Willis Towers Watson — Shares of the insurance company fell 8% after Willis Towers Watson reported softer-than-expected earnings for the second quarter.

Sunnova Energy — The solar stock slid 10% after Sunnova reported a wider-than-expected loss for the second quarter. 

Align Technologies — Shares of the dental products company surged 16% after a surprisingly strong second-quarter report. 

Check out the full list of movers here.

— Jesse Pound

There are 42 names in the S&P 500 reaching fresh highs Thursday, many on the back of their recent quarterly reports.

Here are some of those names.

• Comcast trading at levels not seen since April 2022
• Alphabet C share trading at levels not seen since April 2022
• Alphabet A share trading at levels not seen since April 2022
• Meta Platforms trading at levels not seen since February 2022
• Caesars Entertainment trading at levels not seen since May 2022
• Lowe's trading at levels not seen since March 2022
• PulteGroup trading at all-time highs back to its IPO in 1972
• Royal Caribbean trading at levels not seen since February 2020
• Bunge trading at levels not seen since June 2022
• Costco trading at levels not seen since April 2022
• Constellation Brands trading at all-time highs back through our history to 1986
• Arch Capital Group trading at all-time high levels back to when it began trading on the NASDAQ in 2000
• Berkshire Hathaway Inc. Class B trading at levels not seen since Apr, 2022
• MasterCard trading at all-time high levels since its IPO in May, 2006

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.

— Sarah Min, Chris Hayes

Comments from Meta Platforms related to artificial intelligence spending and capital expenditures should bode well for shares of Nvidia, according to Jefferies.

While the social media company reduced its CapEx range for 2023 by about 10% due to lower non-AI servers, it said it plans to shift some spending into 2024 due to postponed projects and equipment deliveries.

"AI spend in near-term appears supported by commentary regarding good ROI from AI infrastructure and 2024 CapEx growth driven by AI," said analyst Mark Lipacis.

— Samantha Subin

A selloff in Honeywell shares on the back of its earnings report is putting the Dow's winning streak at risk.

The industrial stock slid around 5% on Thursday after posting a mixed earnings report for the second quarter. Honeywell reported an adjusted $2.23 in earnings per share, beating the consensus estimate of $2.21 from analysts polled by Refinitiv. But the company said it saw $9.15 billion in revenue for the quarter, under the forecast of $9.17 billion.

Honeywell was the worst performer in the 30-stock average, which traded around flat. Just 12 of the 30 stocks traded down on Thursday, though the other 11 were all less than 1% below their flatlines. Dow, Inc. was the best performing index member on Thursday with an advance larger than 2%.

If the Dow ends Thursday's session down, it would snap a 13-day winning streak.

— Alex Harring

Shares of Costco traded up in Thursday's session, putting the retailer on pace for its 14th straight winning trading day. The last time it saw a streak of that length was 2019.

The stock rose each session between June 3 and June 20 of the year, marking a 14-session streak. That rally ended June 21, when shares finished about 0.5% lower.

The current rally has helped shares reach a price not seen in more than a year on Thursday morning.

— Alex Harring

The Dow Jones Industrial Average has closed positive for 13 straight days thus far during its rally — which has accounted for more than 75% of its year-to-date gains.

As of the close on July 7^th,  the last close prior to the start of the current win streak, the Dow was up only 1.77% in 2023. As of Wednesday's close on July 26^th, the Dow was up 7.16% year to date, and 2,372.87 points. The index gained 1,785.24 points, or 5.29%, during the 13-day rally, accounting for 75.2% of its gains.

— Hakyung Kim

Communication services was the leading sector in the S&P 500, up by more than 2.9% as of midday trading.

The sector was boosted by shares of Meta and Comcast, which were both higher following their most recent earnings beats.

The next highest sector was consumer discretionary, followed by information technology. Meanwhile, industrials and utilities were the two biggest laggards in the index.

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.

— Sarah Min

June pending home sales rose for the first time in three months. The data showed a rise of 0.3% last month, greater than the estimate of a 0.5% decline from analysts polled by Dow Jones. Pending home sales dropped 2.7% in the prior month.

— Sarah Min

The Dow Jones Industrial Average on Thursday may match a feat last accomplished in 1897 — when Queen Victoria still had three years+ to sit on the throne — but won't come close to equaling the depth of that old record.

While the Dow aims Thursday for a 14th consecutive advance, an accomplishment only reached once before, 126 years ago, the size of this modern expansion is far short of the late Victorian one. Through Wednesday, or day 13, the Dow had rallied 5.29% during its latest run. The 14-day rally in the first months of President William McKinley's administration measured 9.56%.

The Dow Industrials had only been in existence for a little more than a year in 1897, having been created with an initial 12 stocks by Charles Dow in 1896. The average wouldn't expand to 30 stocks until 1928.

The New York Times observed in September 1897 that the advance in stocks over the past year had been "universal and surprising," attributing the gain to an "increase in the country's wealth and earning power during the year."

— Scott Schnipper, Gina Francolla, Bob Pisani

Align Technology was the best-performing stock in the S&P 500, surging more than 19% after beating analysts' expectations in its most recent quarter.

The orthodontics company behind Invisalign on Wednesday reported second-quarter adjusted earnings of $2.22 per share, better than estimates of $2.03 per share, according to Refinitiv. Revenue, and revenue guidance for the year, also beat expectations.

Chipotle Mexican Grill was the biggest decliner in the broader index. The fast-casual chain was off by more than 8% after reporting sales that fell short of analysts' expectations. Chipotle reported revenue of $2.51 billion, lower than the expected $2.53 billion, according to Refinitiv.

— Sarah Min

The major averages opened higher Thursday.

The Dow Jones Industrial Average rose 43 points, or 0.14%. The S&P 500 gained 0.7%, while the Nasdaq Composite added 1.27%.

— Sarah Min

Bank of America upgraded Boeing shares to buy from neutral. The aircraft manufacturer released its second-quarter earnings Wednesday, in which it posted a narrower loss and bigger sales than analysts had predicted.

"Boeing is participating in the commercial aerospace recovery, as part of the global duopoly in large commercial aircraft manufacturing, with some company-specific challenges. ... We expect aircraft deliveries to return to pre-Covid levels by the mid-2020s which in turn should drive cash flow generation and the stock higher," Morgan Stanley said in a Thursday note.

Shares are up nearly 1% Thursday premarket.

The full story about the upgrade can be found here.

— Hakyung Kim

Economists surveyed by Dow Jones were looking for a GDP growth rate of 2.0% in the second quarter.

The 10-year U.S. Treasury yield rose more than four basis points and is trading above 3.89%. Yields move opposite of price, and a basis point is equal to 0.01 percentage points.

The strong economic reading could be seen as a sign that the Fed can keep hiking, though the report also showed softening prices that seem to support the recent drop in inflation readings.

— Jesse Pound

The U.S. economy grew by 2.4% in the second quarter, beating expectations. Economists polled by Dow Jones expected the economy grew by 2% in the second quarter. This is the latest piece of data pointing toward a resilient economy, not one going into a recession.

— Fred Imbert, Jeff Cox

Meta has had a breakout year in 2023 — and Wall Street analysts think the stock has even further room to grow after company's latest quarterly report.

"META's AI investments continue to drive higher engagement, advertiser return, platform monetization and EPS. And the product pipeline is flush with a September AI event catalyst," Morgan Stanley analyst Brian Novak wrote in a note. 

Meta shares rallied 10% Thursday before the bell.

More about analysts' outlook on Meta can be found here.

— Hakyung Kim

Morgan Stanley analyst Adam Jonas downgraded Carvana shares to underweight from equal weight in a Wednesday note, saying that much of the company's recent improvements have already been discounted in the price.

"Even considering our expectation of continued recovery in the business and less bearish views on the used car market, the stock's reward-skew and 20% downside to PT move us to UW," Jonas said." 

Still, shares were higher by nearly 1% during premarket trading.

CNBC Pro subscribers can read more about his downgrade here.

— Hakyung Kim

McDonald's shares rose more than 2% in premarket trading after the fast food chain reported quarterly earnings and revenue Thursday that topped analysts' expectations. A rebound in China sales was behind the beat, and mascot Grimace drove U.S. visits.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Earnings per share: $3.17 adjusted vs. $2.79 expected
• Revenue: $6.5 billion vs. $6.27 billion expected

— Amelia Lucas, Sarah Min

Comcast jumped more than 3% in the premarket after the telecommunications company beat analyst estimates on Thursday when it reported its second quarter results. Higher pricing helped offset a continued slowdown in its broadband business.

The company also said the number of subscribers for its streaming service Peacock nearly doubled to 24 million compared to the prior-year period, with revenue up 85% to $820 million. Still, losses from the streaming platform continued to weigh on NBCUniversal's media business.

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.

— Lillian Rizzo, Sarah Min

Southwest Airlines fell more than 5% in the premarket after the company reported rising costs and a decline in unit revenues for the second quarter. The company's adjusted earnings per share were also slightly below expectations.

— Fred Imbert, Leslie Josephs

Honeywell shares dipped more than 1% after the conglomerate reported mixed quarterly results.

Honeywell earned second-quarter earnings of $2.23 per share, beating a Refinitiv forecast of $2.21. However, revenue came in just light of expectations at $9.15 bullion.

Organic revenue grew by 3% from the year-earlier period, slightly less than what analysts polled by StreetAccount expected.

— Fred Imbert

Steve Sosnick, chief strategist at Interactive Brokers, said Fed Chair Jerome Powell tried hard to keep the central bank's options open going forward.

"He was Hamlet," Sosnick said. "'Maybe we'll raise rates in September, maybe we won't. Maybe we'll pause, maybe we won't.' ... I understand what he was doing. He did not want to take away any tools from the set that's at his disposal."

"But he was trying so hard hard to be two-sided that I think there wasn't really a clear message," Sosnick said.

— Fred Imbert

U.S. Treasury yields were up slightly on Thursday as investors considered the outlook for interest rates after the Federal Reserve's latest interest rate decision and comments from central bank chief Jerome Powell.

At 4:39a.m. ET, the yield on the 10-year Treasury was up by over one basis point to 3.8669%. The 2-year Treasury yield was less than one basis point higher at 4.8329%.

— Sophie Kiderlin

European stocks were higher early Thursday, with the regional Stoxx 600 index up by 0.75% at 8:45 a.m. BST after stumbling on its six-session winning streak Wednesday.

Media stocks climbed 3.5% and tech gained 1.8%. Oil and gas stocks posted the biggest sector decline, down 1%, as Shell results missed analyst expectations.

— Jenni Reid

Thursday will be pivotal for the Dow Jones Industrial Average as three of its constituents will report quarterly results.

Honeywell and McDonald's are set to report before the opening bell, while Intel rounds out the day with results after the close.

How Honeywell and McDonald's fare – and how their shares respond after the quarterly earnings are out– will be especially important to the 30-stock Dow. A 14^th consecutive positive day for the index would make it the lengthiest winning streak in 126 years.

The longest rally for the Dow ended on June 14, 1897 after 14 straight sessions of gains.

— Darla Mercado, Gina Francolla

Shares of Meta Platforms popped 7% after reporting stronger-than-expected quarterly results and issuing uplifting guidance for the current period.

The social media company reported earnings of $2.98 per share on revenues of $32 billion. That beat the EPS of $2.91 and $31.12 billion in revenue expected by Refinitiv. Meta also said that revenue increased 11% from the year-ago period.

For the third quarter, Meta said it expects revenue to range between $32 billion to $34.5 billion. Analysts polled were expecting third-quarter sales of $31.3 billion.

— Samantha Subin, Jonathan Vanian

These are some of the stocks moving the most in extended trading:

• Chipotle Mexican Grill — The burrito chain's stock tumbled 9% in extended trading after sales fell short of Wall Street expectations. Chipotle reported adjusted earnings of $12.65 a share on $2.51 billion in revenue. Analysts polled by Refinitiv had expected EPS of $12.31 and revenues of $2.53 billion.
• ServiceNow — ServiceNow dropped 3% despite reporting a beat on the top and bottom lines. The cloud computing company posted second-quarter adjusted earnings of $2.37 per share on revenue of $2.15 billion. Analysts had expected per-share earnings of $2.05 on revenue of $2.13 billion. The company also unveiled new generative artificial intelligence tools.
• Align Technology – The orthodontics company saw its shares pop 12% after it posted adjusted earnings of $2.22 per share for the second quarter, beating estimates of $2.03 per share, according to Refinitiv. Revenue for the quarter also topped estimates, and revenue guidance for the year was above analyst expectations.

Read the full list of companies moving here.

— Samantha Subin

DoubleLine Capital CEO Jeffrey Gundlach said Wednesday that the Federal Reserve should be content with how much inflation has eased amid its aggressive rate hikes.

"We believe that the inflation rate is pretty much the Fed should really be happy with," Gundlach said on CNBC's "Closing Bell."

The bond king said Wednesday's policy meeting was "as bland as you can possibly get" as Fed Chair Jerome Powell stressed time and again that he will be data dependent.

Gundlach said interest rates have peaked after this series of rate hikes, adding that he's comfortable owning Treasurys right now. The widely followed investor believes the first rate cut will come next year.

— Yun Li

S&P 500 futures opened little changed in overnight trading. Futures tied to the Dow Jones Industrial Average lost 50 points, or 0.14%, while futures connected to the Nasdaq-100 rose 0.2%.

— Samantha Subin