Stocks pared gains on Thursday, with technology shares falling again, dragging the Nasdaq Composite down 1%. Chip stocks were also down sharply on Wednesday.
Nasdaq Composite
The Saudi stock index fell 2.8%, the worst performance for the index since December 2022.
Taiwan Semiconductor Manufacturing Co. reported second-quarter earnings that beat analysts’ estimates, and the world’s largest chipmaker also boosted its full-year revenue outlook. The company said second-quarter revenue from its high-performance computing division, which includes artificial intelligence chips, rose 28% from the previous quarter. The company’s U.S.-listed shares fell 2.8% after rising earlier in the session. They fell 8% on Wednesday after former President Donald Trump said in an interview that Taiwan should pay the United States for defense. On Taiwan, Trump told Bloomberg Businessweek that the country “has taken over almost 100% of our chip business.”
The higher revenue forecast from TSMC gave a boost to shares of other chipmakers, which fell during Wednesday’s tech selloff but were paring gains on Thursday.
Shares of Nvidia rose 0.2% after the chipmaker, a favorite for training artificial intelligence systems, fell 6.6% on Wednesday. Applied Materials Inc. fell 2.8% after falling 10.5%, and Advanced Micro Devices Inc. fell 3.3% after falling 10% on Wednesday.
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Nokia
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The U.S.-listed stock fell 5.8% after the Finnish telecoms company cut its sales forecast for the year after net sales in the second quarter fell 18%.
Choice Holdings Inc. shares surged 48% to $37.43 after Darden Restaurant agreed to acquire the Tex-Mex chain for about $605 million. Darden shares fell 1.7%.
Beyond Meat shares fell 11% after the Wall Street Journal reported that the plant-based meat maker was in discussions with a group of bondholders about restructuring its balance sheet.
Netflix shares fell 1.1% ahead of its second-quarter earnings report, due after the closing bell on Thursday. The streaming company is expected to report earnings of $4.74 per share on revenue of $9.5 billion, up 16% from a year earlier, according to Wall Street. Netflix is expected to report earnings of $4.74 per share on revenue of $9.5 billion, up 16% from a year earlier.
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The company added about 4.5 million new subscribers during the quarter.
Shares of Domino’s Pizza fell 12% after the pizza chain reported second-quarter earnings that beat estimates but revenue, which rose 7.1% from a year earlier, came in slightly below expectations.
Warner Bros. Discovery shares rose 5.8% after the Financial Times reported that the company is considering a number of strategic options, including separating its digital streaming and studio businesses from its television networks.
Dr. Horton
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Shares of the nation’s largest homebuilder rose 11%. The company beat quarterly earnings expectations and said it would launch a $4 billion share buyback. The number of homes foreclosed on rose to 24,155 from 22,985 a year earlier.
Eli Lilly shares fell 7.2%, extending losses from Wednesday that saw the stock fall 3.8% after the Swiss drugmaker announced
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Roche has revealed promising trial data for its weight-loss drug.
United Airlines reported second-quarter adjusted earnings of $4.14 per share, beating analysts’ estimates of $3.94. Shares of the company fell 0.6%. United issued third-quarter earnings guidance that fell short of expectations. United said it was operating in the face of industry-wide challenges, specifically the slower growth rate of domestic capacity, which it expected.
Write to Joe Woelfel at joseph.woelfel@barrons.com
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