Investing.com– U.S. stocks fell on Thursday, pressured by wild swings as the initial rally in technology faded amid an ongoing rotation out of high-flying large-cap tech stocks ahead of Netflix (NASDAQ:NETFLIX) earnings.
At 18:35 ET (13:36 GMT), it was down 275 points, or 0.7%, while it was down 0.4%, and down 0.5%.
tech reverses first-day gains ahead of Netflix results
Mega-cap tech stocks including Apple (NASDAQ:), Google (NASDAQ:), amazon (NASDAQ:) and Microsoft (NASDAQ:) added to recent losses, weighing down the broader market amid an ongoing rotation out of mega-cap tech just ahead of Netflix earnings.
However, NVIDIA Corporation (NASDAQ:) bucked the trend and rose 2% as investors appeared to buy the chipmaker's recent dip despite lingering nervousness over a deeper U.S. chip ban.
Netflix is scheduled to report its results after the market closes, and the streaming giant has already forecast lower net subscriber additions in the second quarter than in the first three months of the year.
LSEG forecasts it will have added approximately 4.82 million subscribers in the second quarter, which would be the fewest since the first quarter of 2023 and about half of the 9.3 million it added in the previous three months.
Latest jobless claims show further signs of labor market slowdown
The number of Americans filing new claims for unemployment benefits rose more than expected last week, rising 20,000 to a seasonally adjusted 243,000 for the week ended July 13, the Labor Department said Thursday, above the 229,000 claims expected.
Claims were revised down from the previous week, but the unemployment rate rose to a two-and-a-half-year high of 4.1% in June.
This suggests the labor market is cooling as Federal Reserve interest rate hikes in 2022 and 2023 slow demand.
Investors estimate there is a more than 91% chance that the Federal Reserve will cut interest rates by 25 basis points before its September meeting, according to CME's FedWatch.
DR Horton impresses on earnings call, but Domino's Pizza falls short
Shares of DR Horton (NYSE:) rose 10% after the homebuilder beat quarterly earnings estimates and also approved a new share repurchase authorization totaling $4 billion.
Domino's Pizza (NYSE:) shares fell 13% after the pizza chain missed quarterly same-store sales estimates as inflation concerns dampened U.S. consumers.
United Airlines Holdings Inc (NASDAQ:) missed Wall Street estimates on third-quarter forecasts after revealing plans to cut capacity despite strong summer travel demand. The airline also reported second-quarter profit that beat estimates.
Warner Bros Discovery considering splitting up, Beyond Meat under fire
Warner Bros Discovery Inc (NASDAQ:) rose 6% after the Financial Times reported that the company is considering plans to spin off its digital streaming and studio businesses from its traditional television business to deal with the company's $39 billion debt load.
Beyond Meat (NASDAQ:) shares fell 10% following a report that the plant-based meat producer met with bondholders to begin discussions about restructuring its balance sheet.
(Peter Nurse and Ambar Warrick contributed to this article.)
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