Stocks rose in early trading Thursday as investors reacted to a flurry of earnings reports from major companies and awaited developments on tariffs.
The S&P 500 and tech-heavy Nasdaq Composite were up 0.7% and 1.4%, respectively, about half an hour after the opening bell, while the Dow Jones Industrial Average was hovering near unchanged. Stocks are coming off of two straight days of hefty gains sparked by hopes President Donald Trump will scale back some of his tariff proposals and significantly cut the 145% levy that’s already in place for Chinese imports.
Companies releasing quarterly results were among the noteworthy movers in early trading Thursday. ServiceNow (NOW) soared 15% and Texas Instruments (TXN) jumped 6%. Dow components International Business Machines (IBM) and Procter & Gamble (PG) were down 7% and 5%, respectively, while Comcast (CMCSA) slipped 5%.
Shares of the world’s largest technology companies were higher across the board this morning, led by chipmakers Nvidia (NVDA) and Broadcom (AVGO), which advanced 2% and 3%, respectively. Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG), Meta Platforms (META) and Tesla (TSLA) were also gaining ground. Alphabet is slated to release its results after the closing bell today.
Intel (INTC) which is also scheduled to report earnings this evening, was up nearly 3%. Other chip stocks were also gaining ground, with On Semiconductor (ON) and Microchip Technology (MCHP) both rising more than 7%, while the VanEck Semiconductor ETF (SMH) climbed 3%.
The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, was down 0.4% at 99.40 this morning, losing ground for the first time in three days. The index on Monday hit 97.92, its lowest level since March 2022, as concerns about tariffs and their potential impact on the U.S. economy weighed on sentiment.
The yield on the 10-year Treasury note, which influences borrowing costs on all sorts of loans, notably mortgages, was at 4.33%, down from 4.39% at Wednesday’s close.
Bitcoin was lower this morning after two straight days of gains that pushed its price to the highest level since early March. The digital currency was at $92,600, down from an overnight high of about $94,000.
Gold futures, which fell sharply yesterday after hitting a record high of around $3,500 an ounce early Tuesday, were recently up 1.1% at $3,330. West Texas Intermediate futures, the U.S. crude oil benchmark, rose 1% to $62.95 per barrel.
P&G Lowers Full-Year Sales, Profit Projections
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Shares of Procter & Gamble (PG) fell Thursday morning after the consumer goods giant’s fiscal third-quarter sales came in below analysts’ estimates and it cut its full-year outlook.
The parent of Tide laundry detergent, Bounty paper towels, and dozens of other brands reported core, or adjusted, earnings per share (EPS) of $1.54 on sales of $19.78 billion. Analysts polled by Visible Alpha had forecast $1.53 and $20.20 billion, respectively.
Net sales declined in P&G’s Beauty, Grooming, Fabric & Home Care, and Baby, Feminine & Family Care segments, while they were flat in the Health Care division.
P&G trimmed its full-year outlook, with sales expected to be “approximately in-line” year-over-year, while core EPS is expected to grow 2% to 4%. Last quarter, the company affirmed its fiscal 2025 guidance of 2% to 4% sales growth and core EPS increasing by 6% to a midpoint of $6.98.
“We’re making appropriate adjustments to our near-term outlook to reflect underlying market conditions while remaining confident in the longer-term growth prospects for our brands and the markets where we compete,” CEO Jon Moeller said.
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Shares of P&G, a Dow component, were down more 4% in recent trading. They entered the day down just over 1% since the start of the year.
Southwest Stock Falls as It Pulls Outlook, Cuts Capacity
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Shares of Southwest Airlines (LUV) fell in premarket trading Thursday, a day after the carrier withdrew full-year earnings projections and said it was reducing capacity amid “macroeconomic uncertainty.”
The Dallas-based airline late Wednesday reported an adjusted loss of $0.13 per share on revenue of $6.43 billion. Analysts polled by Visible Alpha expected an adjusted loss of $0.18 per share on revenue of $6.39 billion.
Although its Q1 results were stronger than anticipated, the carrier said due to “the current macroeconomic uncertainty, it is difficult to forecast given recent and short-lived booking trends,” and that it is withdrawing its earnings before interest and taxes (EBIT) outlooks for this year and next.
The report comes amid great change for the airline. Last month, Southwest said it would introduce baggage fees and a basic economy ticket option amid pressure from activist investor Elliott Investment Management. It previously announced an end to its famed open seating policy last summer. Many changes are set to go into effect late next month.
“Looking ahead, we are confident in the initiatives we have outlined and the value we expect them to produce. We are committed to executing on these plans while controlling what we can control,” CEO Bob Jordan said. “To that end, we are reducing capacity in the second half of this year. These incremental schedule adjustments are in progress, and based on current estimates, we now expect our full year 2025 capacity to be up roughly 1%, year-over-year.”
Southwest Airlines shares, which entered the day down nearly 25% this year, declined 4% ahead of the opening bell.
Watch These ServiceNow Levels as Stock Pops on Earnings
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ServiceNow (NOW) shares surged in premarket trading after the enterprise software provider late Wednesday posted better-than-expected quarterly results and issued a subscription revenue outlook that surpassed Wall Street expectations.
Through Wednesday’s close, ServiceNow shares had lost nearly a quarter of their value since the start of the year, weighed down in part by concerns that the company’s revenue could take a hit from the Trump administration’s efforts to rein in government spending.
The uncertainty surrounding Trump’s plans for tariffs is also a concern for businesses, but ServiceNow CFO Gina Mastantuono said she’s “very confident” in the company’s “ability to navigate these rapidly evolving times,” Barron’s reported. She added that demand signals from business leaders remain strong.
Since completing a double top in late January, ServiceNow shares trended lower within a descending channel for several months before breaking out above the pattern’s upper trendline on Wednesday, setting the stage for a bullish trend reversal.
Importantly, the relative strength index (RSI) confirms bullish momentum, though the indicator remains well below overbought levels, giving the stock ample room to climb.
Investors should watch crucial overhead areas on ServiceNow’s chart around $900, $1,000, and $1,160, while also eyeing an important support level near $807.
ServiceNow shares were up 9% at $887 in recent premarket trading.
Read the full technical analysis piece here.
Major Stock Indexes Down Slightly
2 hr 5 min ago
Futures tied to the Dow Jones Industrial Average were down 0.5%.
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S&P 500 futures slipped 0.3%.
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Nasdaq 100 futures were off 0.1%.
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