Sign InMarket Trends on Thursday: S&P and Nasdaq Hit Lows, Disney Sets Record
Alex Vellor
The stock market faced significant losses on Wednesday as all major indexes reported declines. The S&P 500 slid 2.31%, closing at 5,427.13, while the Nasdaq Composite fell 3.64% to 17,342.41, marking their worst sessions since 2022. The Dow Jones Industrial Average also dropped, decreasing by 1.25% to close at 39,853.87.
These declines were primarily driven by disappointing earnings results from Alphabet (NASDAQ:GOOG), Google’s parent company, and Tesla (NASDAQ:TSLA). Alphabet saw a 5% drop, the largest single-day decline since January 31, when its stock fell 7.5%. Despite beating earnings and revenue expectations, Alphabet’s YouTube advertising revenue missed estimates. Tesla’s stock plunged 12.3%, its worst day since 2020, after reporting a 7% year-over-year drop in auto revenue and missing earnings expectations.
Premarket Movers:
| Company | Stock Movement | Reason |
| Ford (NYSE:F) | Slumped 13% | Reported a significant profit miss for the second quarter due to costly quality issues and an EV business impacting its bottom line. |
| Chipotle (NYSE:CMG) | Rose 3.6% | Reported stronger-than-expected earnings for the second quarter with strong comparable restaurant sales. |
| IBM (NYSE:IBM) | Rose 3.1% | Increased interest in artificial intelligence helped log stronger-than-expected quarterly earnings. |
| Hasbro (NASDAQ:HAS) | Soared 11% | Posted a smaller-than-expected drop in second-quarter as digital gaming demand offset a slump in toy sales, and cost-control strategies beat profit expectations. |
| Southwest Airlines (NYSE:LUV) | Fell 5.8% | Reported a 46% drop in profit and forecasted a potential drop in unit revenue for the third quarter due to an oversupplied U.S. market forcing discounted tickets. |
| American Airlines (NASDAQ:AAL) | Fell 7.3% | Cut its annual profit forecast due to uneven demand trends and overcapacity in certain markets dampening pricing power. |
| Royal Caribbean (NYSE:RCL) | Fell 1.5% | Despite raising its annual profit forecast for the third time this year, continued demand for cruise vacations and higher ticket pricing didn't prevent the stock drop. |
| Harley-Davidson (NYSE:HOG) | Rose 1% | Reported a 23% rise in quarterly profit as demand held up for its pricier bikes during the summer riding season. |
| Keurig Dr Pepper (NASDAQ:KDP) | Rose 2.6% | Quarterly earnings and revenue met expectations with higher prices fueling U.S. soda sales. |
| Unilever (LON:ULVR) | ADRs rose 6.5% | Raised its full-year margin guidance and announced the spinoff of its Ben & Jerry’s ice cream business would be completed by the end of 2025. |
Crude Oil Prices
Crude oil prices also fell on Thursday amid concerns about declining demand, particularly from China, the world’s largest crude importer. By 4:15 AM ET, U.S. crude futures (WTI) dropped 0.5% to $77.19 per barrel, while Brent crude fell 0.5% to $81.30 per barrel. This decline follows a brief respite on Wednesday when prices settled higher after the Energy Information Administration reported a larger-than-expected drop in U.S. crude inventories by 3.7 million barrels.
Despite this, prices remained near two-month lows due to ongoing demand concerns and forecasts of a potential oil market surplus in 2025.
Box Office Leader
In the entertainment sector, Disney (NYSE:DIS) reclaimed its position as the top contender at the box office with “Inside Out 2” earning over $1.46 billion in global ticket sales, making it the highest-grossing animated feature of all time.
This surpasses Disney’s “Frozen II,” which held the title since 2020. “Inside Out 2” is expected to further increase its sales once it premieres in Japan. In 2015, Japan contributed nearly $33 million to the original “Inside Out,” which earned a global total of $850.5 million.
About The Author
Alex Vellor
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