U.S stocks closed mostly higher with the broad S&P 500 and tech-heavy Nasdaq scoring fresh record highs again with help from strong Alphabet earnings.
The blue-chip Dow was weighed down but disappointing IBM results.
Electric vehicle giant Tesla and Google parent Alphabet were the first two of the Magnificent Seven to report earnings after the close. Magnificent Seven stocks are the top influential megacap technology stocks. They also include Microsoft, Amazon, Nvidia, Apple and Facebook parent Meta.
In a split decision, Tesla missed sales estimates, but Alphabet topped forecasts and raised its spending forecast. Alphabet’s ongoing spending signaled that artificial intelligence investments are still flowing, which lifted optimism in tech stocks, the Nasdaq and S&P 500.
The blue-chip Dow slipped 0.7%, or 316.38 points, to 44,693.91; the S&P 500 edged up 0.07%, or 4.44 points, to 6,363.35, and the Nasdaq rose 0.18%, or 37.94 points, to 21,057.96.
After the market close, Intel, Deckers Outdoor, Boston Beer and Scholastic are due to report results.
The benchmark 10-year yield rose to 4.402% after weekly jobless claims fell for the sixth straight week, a sign the labor market remains resilient. Jobless claims unexpectedly fell to 217,000. Economists had forecast 227,000. Continuing claims, seen as a barometer of how long people are unemployed, rose to 1.96 million from 1.95 million the prior week.
“Today’s jobless claims total paints a familiar picture,” said Chris Larkin, managing director of trading and investing at E*TRADE from Morgan Stanley. “There are still few signs of major cracks in the labor market. And if that picture remains intact, the Fed has one less reason to cut interest rates.”
Investors will also continue to look for trade deals to take stocks higher.
The U.S. and Japan reached a trade deal that would slap a lower-than-originally threatened 15% tax on Japanese imports, and a deal with the European Union is expected to mirror that, reports said.
However, EU countries approved a $100 billion-plus package of retaliatory tariffs on U.S. goods that could start in August if no trade agreement is reached, the Wall Street Journal said.
President Donald Trump plans to visit the Federal Reserve construction site at 4 p.m. ET, according to the White House schedule. The visit would mark the first time in nearly two decades that an American president has made an official trip to the central bank, whose independence from elected officials is a hallmark of the Fed.
The unusual move is seen as part of Trump’s pressure campaign for Powell to resign or lower interest rates. The Trump administration has said it’s scrutinizing Powell’s handling of the overbudget renovation of the Fed headquarters.
Christie’s International Real Estate is starting a dedicated division to allow buyers to purchase real estate with digital currency, the New York Times reported.
Bitcoin was last up 0.14% at $118,922.10.
(This story was updated with new information.)
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.