Wall Street ends mostly lower; Intel, Amazon fall after earnings

U.S. equity markets ended Thursday largely in the red, with the Nasdaq Composite and Nasdaq 100 each declining 1.38%. Among the mega-cap tech stocks, Alphabet posted the biggest drop, falling 12.64%, while Amazon slipped 4.25% ahead of its quarterly earnings report.

The downturn was not broad-based, however. The Russell 2000 rose 1.01%, the NYSE Composite ticked up, and within the S&P 500, gainers easily outpaced losers. The major averages obscured a more positive picture for the typical stock.

Once the market closed, attention turned to the latest earnings reports. Early after-hours indications showed Intel dropping 20.17% and Amazon sliding 6.30%, ensuring tech stocks remained in the spotlight as the next trading day approaches.

The following are closing prices for major U.S. indices:

• The Dow Jones Industrial Average fell 132.48 points, or 0.25%, to 52,342.62.

• The S&P 500 lost 23.44 points, or 0.30%, closing at 7,720.54.

• The Nasdaq Composite dropped 365.13 points, or 1.38%, to 26,184.72.

• The Russell 2000 advanced 28.71 points, or 1.01%, to 2,859.22.

• The Nasdaq 100 slid 410.65 points, or 1.38%, to 29,402.51.

Market breadth painted a more positive picture.

Despite the falls in the headline indices, the following breadth figures were recorded:

• On the Dow, 24 stocks rose while 6 fell.

• In the S&P 500, 402 stocks advanced and 84 declined.

• The Nasdaq 100 had 58 gaining stocks versus 43 losing.

• Across the Nasdaq market, 1,643 stocks rose and 1,602 fell.

• On the NYSE Composite, 1,276 stocks advanced against 505 declining.

The contrast between the S&P 500's decline and its positive breadth is especially notable. It indicates that selling was concentrated in a few heavily weighted names, while a broad array of other stocks gained ground. Small-cap stocks also drew buyers, as the Russell 2000 outperformed the Nasdaq Composite by roughly 2.39 percentage points.

Among the Magnificent Seven, Alphabet led the losses.

Three of the seven ended the day higher, but Alphabet's steep drop was the most notable.

• Meta gained 1.96%, closing at $624.52.

• Apple rose 1.48% to $348.91.

• Microsoft slipped 0.16% to $530.14.

• Tesla fell 0.23% to $403.30.

• Nvidia declined 0.83% to $213.60.

• Amazon dropped 4.25% to $243.79.

• Alphabet tumbled 12.64% to $283.82.

After-hours trading brought a wave of earnings, with Intel and Amazon grabbing the spotlight.

Both companies missed revenue expectations, and Amazon also fell short on earnings per share.

• Intel posted adjusted EPS of $0.52, above the $0.41 consensus, while revenue of $16.50 billion missed the $16.60 billion estimate. The stock was down 17.44% in after-hours trading.

• Amazon reported EPS of $1.89, below the $1.97 expected, and revenue of $201.90 billion, below the $202.20 billion forecast. Shares fell 6.40% after hours.

• Gilead Sciences delivered adjusted EPS of $2.55, beating the $2.19 estimate, and revenue of $8.30 billion, above the $7.80 billion forecast. The stock gained 2.65% in after-hours trading.

• Sandisk reported adjusted EPS of $49.51, above the $46.20 consensus, and revenue of $11.031 billion, topping the $10.639 billion estimate. Shares were up 2.15% after hours.

• Starbucks posted adjusted EPS of $0.80, beating the $0.72 estimate, but revenue of $9.10 billion missed the $9.22 billion forecast. The stock was down 0.33% in after-hours trading.

• Pinterest reported EPS of $0.04, well below the $0.49 expected, and revenue of $1.17 billion, missing the $1.21 billion estimate. Shares tumbled 8.89% after hours.

A key takeaway from today's action: an index decline does not imply a broad sell-off.

In a market-cap-weighted index, a sharp drop in one large component can offset gains in many smaller ones. Thursday's S&P 500 fall, paired with strong breadth, exemplifies that dynamic.

Earnings reports also require context. Sandisk surpassed estimates on both lines yet traded lower, and Intel's EPS beat failed to lift its stock. The headline number is just one piece of the puzzle. For traders, the key is to observe whether the initial after-hours reaction holds once regular trading begins.