US open: Major indices trade lower as chip stocks slide

(Sharecast News) - Major indices were in the red early on Thursday amid falling semiconductor stocks. As of 1525 BST, the Dow Jones Industrial Average was down 0.03% at 52,644.86, while the S&P 500 shed 0.15% to 7,561.38 and the Nasdaq Composite came out of the gate 0.60% softer at 26,112.16.

The Dow opened 13.78 points lower on Thursday, doing little to reverse gains recorded in the previous session.

Chip stocks fell sharply in early trading, with Arm Holdings down 5.95% and Taiwan Semiconductor dropping 2.39%, following an 11% plunge in SK Hynix in Seoul amid a tech rout across the region.

In other company news, Eli Lilly announced that it will buy psychedelic‑drug developer AtaiBeckley for $2.8bn upfront, giving the pharma giant access to a late‑stage treatment aimed at hard‑to‑treat depression. The deal brings in AtaiBeckley's experimental DMT‑based therapy, currently in Phase III trials for treatment‑resistant depression, and adds a pipeline of other psychedelic‑derived candidates, including one related to MDMA, for a range of mental‑health conditions.

As far as Thursday's earnings slate goes, UnitedHealth delivered adjusted earnings of $6.38 per share on revenues of $112.03bn, comfortably ahead of forecasts, while GE Aerospace raised its 2026 profit outlook as commercial engines and services revenues rose 27% to $9.7bn, helping lift adjusted quarterly profits to $2.02 per share on $13.35bn of revenue, up 21% year‑on‑year.

Still to come, Netflix was set to report earnings after the close.

On the macro front, Americans lined up for unemployment benefits at a decelerated pace in the week ended 11 July, according to the Labor Department, with initial claims dropping by 8,000 to 208,000. Last week's numbers came in well under expectations for an increase to 217,000, marking the lowest initial claim count in over two months and indicating that the labour market remains robust. Continuing claims fell by 16,000 to 1.8m on the week ended 4 July, under expectations of 1.82m, while the four-week moving average came in at 214,250, down from the prior week's downwardly revised 4,750 print.

Elsewhere, the Philadelphia Federal Reserve's manufacturing index jumped to 41.4 in July from 10.3 in June, far above expectations for 13 and marking the strongest pace of expansion since late 2021. New orders climbed to 37.0, their highest level since November 2021, while shipments rose to 33.7, the best reading since April.

On another note, US retail sales rose 0.2% month‑on‑month in June, according to the Census Bureau, matching forecasts but marking the smallest gain in five months as lower energy prices weighed on the headline figure. Auto dealers and non-store retailers led the increases, while gasoline stations saw a 5.3% drop. Excluding gasoline, sales were up 0.7%, and the GDP‑linked control group rose 0.5%, easing from May's upwardly revised 0.8% reading and suggesting consumer spending may be losing momentum.

Still on data, US homebuilder confidence softened in July, while pending home sales also pointed to cooling conditions across the housing market. The NAHB/Wells Fargo housing market index slipped to 34 from 36, missing expectations for 35. Current sales conditions eased to 37, sales expectations for the next six months fell to 43, and buyer traffic dropped to 23, underscoring weaker demand. Builders continued to lean on incentives, with 37% cutting prices in July, up from 35% in June and marking the third consecutive monthly increase, while the average reduction held at 6% and the share using incentives rose to 63%, extending a 16‑month run above 60%.

Separately, pending home sales declined month‑on‑month across all four major US regions in June, according to the National Association of Realtors, down 5.4% on the prior month. Year‑on‑year activity improved in the Northeast and Midwest but fell in the South and West, adding to signs of a market losing momentum. On a year-on-year basis, pending sales were 0.3% softer.







Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Unitedhealth Group Inc. (UNH) $452.39 8.01% Apple Inc. (AAPL) $328.70 3.24% Coca-Cola Co. (KO) $84.56 2.65% Merck & Co. Inc. (MRK) $126.89 2.65% Amgen Inc. (AMGN) $365.28 2.57% Nike Inc. (NKE) $43.82 2.56% Home Depot Inc. (HD) $347.56 2.20% McDonald's Corp. (MCD) $269.00 1.80% Johnson & Johnson (JNJ) $251.05 1.71% Visa Inc. (V) $359.60 1.56%

Dow Jones - Fallers

Intel Corp. (INTC) $100.55 -6.95% Cisco Systems Inc. (CSCO) $108.85 -5.41% Goldman Sachs Group Inc. (GS) $1,112.35 -3.45% International Business Machines Corporation (CDI) (IBM) $205.20 -2.84% Caterpillar Inc. (CAT) $894.42 -2.17% JP Morgan Chase & Co. (JPM) $342.62 -1.24% Boeing Co. (BA) $215.88 -1.02%

S&P 500 - Risers

Abbott Laboratories (ABT) $100.26 12.64% Robert Half Inc. (RHI) $40.15 9.26% Unitedhealth Group Inc. (UNH) $446.42 8.01% Biogen Inc (BIIB) $200.82 7.14% Intuitive Surgical Inc. (ISRG) $401.08 6.21% DENTSPLY Sirona Inc. (XRAY) $13.78 6.05% Perrigo Company plc (PRGO) $10.74 5.81% Stryker Corp. (SYK) $330.70 5.58% J.B. Hunt Transport Services Inc. (JBHT) $293.77 5.43% Medtronic Plc (MDT) $84.30 5.26%

S&P 500 - Fallers

Western Digital Corp. (WDC) $491.47 -10.70% Seagate Technology Plc (STX) $791.13 -9.40% Micron Technology Inc. (MU) $878.84 -9.14% Coterra Energy Inc. (CTRA) $32.56 -8.62% Advanced Micro Devices Inc. (AMD) $516.50 -7.24% Intel Corp. (INTC) $100.75 -6.95% NetApp Inc. (NTAP) $160.10 -6.54% Corning Inc. (GLW) $165.33 -6.40% Cadence Design Systems Inc. (CDNS) $362.70 -5.66% Cisco Systems Inc. (CSCO) $109.16 -5.41%

Nasdaq 100 - Risers

Biogen Inc (BIIB) $200.82 7.14% Intuitive Surgical Inc. (ISRG) $401.06 6.21% DENTSPLY Sirona Inc. (XRAY) $13.77 6.05% J.B. Hunt Transport Services Inc. (JBHT) $293.08 5.43% Idexx Laboratories Inc. (IDXX) $574.92 5.18% Cintas Corp. (CTAS) $204.02 4.88% Ross Stores Inc. (ROST) $232.17 4.47% Fastenal Co. (FAST) $46.71 4.33% Paypal Holdings Inc (PYPL) $56.08 4.06% Incyte Corp. (INCY) $117.06 3.72%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49% Western Digital Corp. (WDC) $490.21 -10.70% Seagate Technology Plc (STX) $789.37 -9.40% Micron Technology Inc. (MU) $876.73 -9.14% Intel Corp. (INTC) $100.68 -6.95% Cadence Design Systems Inc. (CDNS) $363.48 -5.66% Cisco Systems Inc. (CSCO) $109.24 -5.41% QUALCOMM Inc. (QCOM) $172.68 -4.82% Texas Instruments Inc (TXN) $292.83 -4.38% Tesla Inc (TSLA) $390.93 -3.50%