US stocks slide on mixed numbers across sectors

US stocks slide on mixed numbers across sectors

US stocks ended lower on Thursday on weaker-than-expected quarterly earnings from Tesla (TSLA), mixed earnings numbers across all sectors, and weaker-than-expected housing and jobs data.

Shares of Tesla declined by 9.75% to a nearly three-month low after the company reported first-quarter results that fell below Wall Street expectations on Wednesday. Tesla’s recent price cuts have hurt profits, with the EV maker reporting a quarterly gross margin of 19%, while Wall Street analysts had expected 20.7%.

“They were cornered,” Ronald Jewishikow, vice president of Guggenheim Securities automotive equity research, told Yahoo Finance Live following Wednesday’s report. “They have gathered many supplies they need to find a home. And the only tool they have is to lower price.”

Other stock market overview

  • S&P 500 declined by 0.59%, recovering from previous lows
  • Dow Jones Industrial Average declined by nearly 108 points to 0.32%
  • High-tech Nasdaq Composite declined by 0.80%

AT&T was the largest loser on the S&P 500, shedding 10.43%. The company reported a 20% decline in revenue compared to last year.

IBM shares traded higher on the day, closing near zero as the company reported adjusted earnings per share of $1.36 versus Street’s estimate of $1.25 after the close on Wednesday.

American Express (AXP)’s shares declined by 1% as the company shrugged off Wall Street’s earnings per share estimates. However, American Express CEO Stephen Squeri told Yahoo Finance that nothing “was unexpected” this quarter.

Regarding casinos, Las Vegas Sands forecast a positive tone for the industry, with Macao’s revenue nearly tripling compared to last year. Las Vegas Sands shares rose 3.66% as the casino operator reported quarterly Macao revenue topped $1 billion for the first time since 2019. Wynn Resorts (WYNN) shares also rose.

Oil futures declined on Thursday, with West Texas Intermediate (CL=F) and Brent (BZ=F) down more than 2%. Brent Crude has traded lower for three of the last four trading sessions as prices fell below $81 a barrel.

Economic data continued to be the focus on Thursday, with the weekly number of new jobless claims coming in higher than expected. According to the report, 245,000 applications for unemployment benefits were made. Economists polled by Bloomberg expected 240,000 complaints. Meanwhile, existing home sales in March fell by 2.4% from the month prior.