The Dow Jones Industrial Average closed at 33,815.90 on Thursday with a loss of 321.41 points or -0.94%. The S&P 500 closed at 4,134.98 for a loss of 38.44 points or -0.92%. The Nasdaq Composite closed at 13,818.41 for a loss of 131.81 points or -0.94%. The VIX Volatility Index was higher at 18.71 for a gain of 1.21 points or 6.91%.
Thursday's market movers
The major U.S. indexes closed lower Thursday after showing signs of a rebound. Investors continued to watch first-quarter earnings. They also remained concerned over Covid issues, particularly the hold on Johnson & Johnson's (JNJ, Financial) vaccine.
Pfizer (PFE, Financial) was down 2.25% and Moderna (MRNA, Financial) lost 0.83%, despite increased demand for their vaccines. A Pfizer/Biontech (BNTX) scientist suggested that an annual vaccine would be needed. Pfizer was also in talks to provide its vaccine to India, where approximately 315,000 new cases were reported in a 24-hour period. Johnson & Johnson was down 0.86%, with an advisory council decision on its U.S. vaccine use expected for tomorrow.
On Capitol Hill, Republican senators released a $568 billion counteroffer to the $2 trillion infrastructure plan announced by Biden. The iShares PHLX Semiconductor ETF (SOXX, Financial) led the day's sector losses with a return of 2.18%. Biden is also creating a stir with suggested tax payments for America's wealthiest.
On Thursday's earnings calendar:
- Intel (INTC, Financial): Revenue of $19.7 billion decreased 0.7% year over year and beat estimates by $1.75 billion. First-quarter GAAP earnings of 82 cents missed estimates by 25 cents and non-GAAP EPS of $1.39 beat estimates by 25 cents.
- Dow (DOW, Financial): Revenue of $11.88 billion increased 21.6% year over year and beat estimates by $750 million. First-quarter GAAP earnings of $1.32 per share beat estimates by 26 cents and non-GAAP earnings of $1.36 beat estimates by 21 cents.
- AT&T (T, Financial): Revenue of $43.9 billion increased 2.6% year over year and beat estimates by $1.21 billion. First-quarter GAAP earnings of $1.04 per share beat estimates by 49 cents and non-GAAP earnings of 86 cents beat estimates by 8 cents. AT&T's stock gained 4.15%
- Southwest Airlines (LUV, Financial): Revenue of $2.05 billion decreased 51.5% year over year and missed estimates by $20 million. First-quarter GAAP earnings of 19 cents beat estimates by $1.84 and a non-GAAP earnings loss of $1.72 beat estimates by 13 cents.
- American Airlines (AAL, Financial): Revenue of $4.01 billion decreased 52.9% year over year and missed estimates by $30 million. A first-quarter GAAP loss of $1.97 per share missed estimates by 23 cents and a non-GAAP earnings loss of $4.32 beat estimates by 1 cent.
In other news:
- Global leaders attended a two-day virtual climate summit, where there was a focus on emission reductions.
- The House of Representatives passed legislation to create a combined Securities Exchange Commission and Commodity Futures Trading Commission task force.
- The Chicago Fed National Activity Index increased to 1.71 from -1.2.
- 547,000 Americans filed for jobless claims, down from 586,000 and reporting a pandemic low. Continuing jobless claims were 3.674 million, down from 3.708 million.
- Existing home sales decreased 3.7% in March to a seasonally adjusted annual rate of 6.01 million.
- The Conference Board's Leading Economic Indicators Index increased 1.3% following a decrease of 0.1%.
- The Kansas Fed Manufacturing Index increased to 40 from 23.
- The Treasury held auctions for four-week bills at a rate of 0.005%, eight-week bills at a rate of 0.015% and five-year TIPS at a rate of -1.631%.
- Freddie Mac released its weekly mortgage market survey. The 30-year fixed-rate mortgage averaged 2.97%, down from 3.04%. The 15-year fixed-rate mortgage averaged 2.29%, down from 2.35%.
In small caps, the Russell 2000 closed at 2,232.61 for a loss of 7.01 points or -0.31%. The S&P 600 closed at 1,325.84 for a loss of 6.43 points or -0.48%. The Dow Jones U.S. Small-Cap Growth Index closed at 14,895.80 for a loss of 7.30 points or -0.05%. The Dow Jones U.S. Small-Cap Value Index closed at 10,975.23 for a loss of 79.55 points or -0.72%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 2,700.37 for a loss of 11.22 points or -0.41%; the S&P 100 at 1,878.70 for a loss of 20.05 points or -1.06%; the Nasdaq 100 at 13,762.36 for a loss of 172.79 points or -1.24%; the Russell 3000 at 2,476.56 for a loss of 19.68 points or -0.79%; the Russell 1000 at 2,331.97 for a loss of 19.34 points or -0.82%; the Wilshire 5000 at 43,262.45 for a loss of 357.60 points or -0.82%; and the Dow Jones U.S. Select Dividend Index at 831.33 for a loss of 11.20 points or -1.33%.
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