U.S. stock futures traded mixed on Thursday as investors assessed a fresh round of corporate earnings and weighed developments on the international trade front.
As of 09:35 ET, the Dow Jones Industrial Average was down 280 points, or 0.6%. In contrast, the S&P 500 edged up 10 points, or 0.1%, and the NASDAQ Composite advanced 70 points, or 0.3%.
Trade Optimism Lifts Sentiment
Investor sentiment received a boost following a Financial Times report suggesting progress toward a U.S.-EU trade agreement. The proposed deal includes a baseline 15% tariff on EU imports, building on momentum from a recent pact with Japan. These developments have eased some concerns surrounding President Trump’s trade agenda, especially as the August 1 deadline for proposed “reciprocal” tariffs approaches.
Alphabet Impresses with Strong Earnings
Nearly 25% of S&P 500 companies have reported Q2 results so far, with 67% beating revenue estimates and 88% exceeding EPS forecasts — a sign of a broadly resilient earnings season.
One standout was Alphabet (NASDAQ: GOOGL), which posted results well above Wall Street expectations. The tech giant highlighted increased demand for its cloud services, raising its 2025 capital expenditure target to $85 billion from $75 billion, and signaled higher investment in 2026. AI integration within its search engine and growing adoption of its AI tools also drove a 10% increase in advertising revenue.
Tesla Slumps, Other Notable Movers
In contrast, Tesla (NASDAQ: TSLA) shares fell after CEO Elon Musk warned of “a few rough quarters” ahead, following a disappointing Q2 performance.
Other key movers:
- IBM (NYSE: IBM) declined after reporting weaker-than-expected software revenue.
- UnitedHealth (NYSE: UNH) slipped after revealing a Department of Justice investigation into its Medicare practices.
- American Eagle Outfitters (NYSE: AEO) jumped on news of a new denim campaign featuring actress Sydney Sweeney, aimed at reconnecting with Gen Z consumers.
- Dow Inc. (NYSE: DOW) tumbled after posting a wider-than-expected loss and slashing its dividend amid ongoing industry headwinds.
- Chipotle (NYSE: CMG) dropped as the fast-casual chain missed sales expectations and revised its annual forecast lower due to soft consumer spending.
Economic Data: Jobless Claims & PMI
On the economic front, the Labor Department reported a slight drop in first-time jobless claims. Initial claims for the week ending July 19 came in at 217,000 — down from 221,000 and below the expected 227,000 — signaling continued labor market strength.
Investors are now turning their attention to preliminary Purchasing Managers’ Index (PMI) data. July’s manufacturing PMI is expected to dip slightly to 52.7 from 52.9, while the services PMI may rise modestly to 53.0. Readings above 50 indicate expansion.
Oil Prices Rebound on Inventory Draw
Crude oil prices climbed after U.S. inventory data showed a notable decline. At 09:35 ET:
- Brent crude rose 1% to $69.17 per barrel.
- WTI crude gained 1.2% to $66.05 per barrel.
According to the Energy Information Administration, U.S. crude inventories fell by 3.17 million barrels last week. Despite this uptick, both contracts had previously fallen four sessions in a row amid global trade concerns impacting demand forecasts.
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