US close: Stocks extend gains as Q2 earnings continue to pour in

Wall Street stocks closed higher on Thursday as market participants continued to thumb over earnings from some of the nation's biggest companies.

At the close, the Dow Jones Industrial Average was up 0.51% at 32,036.90, while the S&P 500 was 0.99% firmer at 3,998.95 and the Nasdaq Composite saw out the session 1.36% stronger at 12,059.61.

The Dow closed 162.06 points higher on Thursday, extending gains recorded in the previous session.

Earnings season continued to hold investor attention on Thursday after electric carmaker Tesla posted stronger-than-expected earnings but narrowed automotive gross margins overnight and carrier United Airlines revealed it had returned to profitability in Q2 despite results falling short of analysts' expectations.

As for Thursday's earnings slate, American Airlines missed earnings estimates on Thursday despite record quarterly earnings that came amid an increase in fares and demand, while AT&T raised full-year revenue growth forecasts for its wireless service business on the back of increased subscriber numbers.

Domino's missed expectations for its second trading quarter, citing a tough labour market and higher costs, while Phillip Morris topped earnings estimates as cigarette volume was up 1.1% and net revenue from smoke-free products accounted for 29.9% of total net revenues.

On the data front, Americans filed new claims for unemployment benefits at an accelerated clip in the week ended 16 July, jumping by 9,000 to 251,000, well above market expectations for a print of 240,000 and the highest since November 2021. According to the Labor Department, on a non-seasonally adjusted basis, initial claims rose by 7,853 week-on-week to 248,991, with notable increases in Massachusetts, California, and South Carolina.

Elsewhere, factory activity in the US mid-Atlantic region weakened unexpectedly in July as the decline in new orders accelerated its recent fall, the results of a key survey revealed. The Federal Reserve Bank of Philadelphia's manufacturing index retreated from a reading of -3.3 for June to -12.3 in July, while a key sub-index tracking firms' new orders fell from -12.4 to -24.8.

Finally, the Conference Board's leading index decreased 0.8% in June to 117.1, following a 0.6% decline in May. The index was also down 1.8% over the first six months of 2022, a reversal from its 3.3% growth over the second half of 2021.

Investors also digested news from across the pond that the European Central Bank announced its biggest rate hike in more than 20 years as it looked to tackle surging inflation, which hit a record 8.6% in June. The ECB hiked rates by 50 basis points to 0.0% from a record low, versus expectations for a 25 basis points increase. This marked the first hike in 11 years and the biggest since 2000.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Boeing Co. (BA) $161.41 1.91%
Salesforce.Com Inc. (CRM) $185.45 1.59%
Goldman Sachs Group Inc. (GS) $326.62 1.58%
Apple Inc. (AAPL) $155.35 1.51%
Walmart Inc. (WMT) $132.55 1.46%
Visa Inc. (V) $216.24 1.32%
Cisco Systems Inc. (CSCO) $44.58 1.02%
Microsoft Corp. (MSFT) $264.84 0.98%
Home Depot Inc. (HD) $304.97 0.89%
American Express Co. (AXP) $150.21 0.84%

Dow Jones - Fallers

Verizon Communications Inc. (VZ) $47.66 -2.87%
Dow Chemical Co. (DOW) $51.40 -2.19%
International Business Machines Corporation (CDI) (IBM) $127.15 -1.57%
Walgreens Boots Alliance, Inc. (WBA) $38.46 -1.18%
Travelers Company Inc. (TRV) $156.83 -0.87%
Chevron Corp. (CVX) $145.40 -0.76%
Procter & Gamble Co. (PG) $140.77 -0.55%
McDonald's Corp. (MCD) $253.47 -0.44%
Amgen Inc. (AMGN) $245.78 -0.34%
Coca-Cola Co. (KO) $61.36 -0.23%

S&P 500 - Risers

Nucor Corp. (NUE) $128.52 9.15%
Danaher Corp. (DHR) $279.23 9.07%
Bath & Body Works, Inc. (BBWI) $33.29 7.04%
Thermo Fisher Scientific Inc. (TMO) $575.00 6.75%
Mettler Toledo International (MTD) $1,240.29 6.33%
Agilent Technologies Inc. (A) $127.19 6.12%
Nordstrom Inc. (JWN) $24.48 6.02%
Waters Corp. (WAT) $349.48 5.94%
PerkinElmer Inc. (PKI) $147.96 5.69%
Akamai Technologies Inc. (AKAM) $94.15 4.86%

S&P 500 - Fallers

Carnival Corp. (CCL) $9.85 -11.18%
United Airlines Holdings Inc (UAL) $37.44 -10.17%
Discover Financial Services (DFS) $100.11 -8.93%
Royal Caribbean Cr (RCL) $35.75 -8.24%
AT&T Inc. (T) $18.92 -7.62%
American Airlines Group (AAL) $14.08 -7.43%
Norwegian Cruise Line Holdings Ltd (NCLH) $12.48 -7.28%
Helmerich & Payne Inc. (HP) $39.83 -7.16%
CenturyLink Inc. (LUMN) $10.45 -5.43%
Allstate Corp (The) (ALL) $115.90 -5.26%

Nasdaq 100 - Risers

Tesla Inc (TSLA) $815.12 9.78%
NetEase Inc. Ads (NTES) $99.99 6.16%
Asml Holdings N.V. (ASML) $542.27 5.41%
Hasbro Inc (HAS) $84.80 4.27%
CSX Corp. (CSX) $30.99 4.24%
Idexx Laboratories Inc. (IDXX) $398.35 3.79%
Align Technology Inc. (ALGN) $284.24 3.55%
Netflix Inc. (NFLX) $223.88 3.44%
Intuit Inc. (INTU) $434.70 3.39%
Biogen Inc (BIIB) $214.06 3.17%

Nasdaq 100 - Fallers

American Airlines Group (AAL) $14.08 -7.43%
T-Mobile Us, Inc. (TMUS) $133.19 -3.10%
Dish Network Corp. (DISH) $18.91 -1.77%
Walgreens Boots Alliance, Inc. (WBA) $38.46 -1.18%
Marriott International - Class A (MAR) $151.00 -1.05%
Dollar Tree Inc (DLTR) $171.68 -0.95%
Gilead Sciences Inc. (GILD) $61.01 -0.88%
Vertex Pharmaceuticals Inc. (VRTX) $283.11 -0.84%
Kraft Heinz Co. (KHC) $37.95 -0.81%
Expedia Group Inc. (EXPE) $102.37 -0.79%