Major US stock indexes have declined markedly, as investors analyzed a block of mixed quarterly reports indicating a slowdown in the global economy, as well as comments from the President of the European Central Bank (ECB) on monetary policy.

About a third of the S & P 500 companies have already announced financial results for the second quarter. According to FactSet, of these companies, 75% reported receiving quarterly earnings that exceeded expectations. After the close of the trading session, the publication of quarterly reports Alphabet (GOOG), Amazon (AMZN), Intel (INTC) and Starbucks (SBUX) is expected.

On Wall Street, the ECB President Draghi’s comments were also carefully considered on the eve of a key Fed meeting next week. The head of the ECB said he did not see a significant risk of recession in the region. Many traders saw this as a sign that the incentives offered would be less significant than expected. Earlier, the ECB kept interest rates unchanged, hinting at a further easing of monetary policy, as well as lower rates.

Market participants also studied several important macroeconomic reports. A report from the Ministry of Labor showed that the number of initial claims for unemployment benefits fell to a three-month low last week, indicating a steady strength of the labor market, even though the economy seems to be losing momentum. According to the report, the number of applications for unemployment benefits fell from 10,000 to 206,000, taking into account seasonal fluctuations in the week to July 20, which is the lowest level since mid-April. Economists predicted that the number of applications will increase to 219,000.

At the same time, a report published by the US Department of Commerce showed a much stronger than expected growth in new orders for durable goods in the US in June, although the report also showed a much sharper than previously reported drop in orders in May. Orders rose 2.0% after falling to a revised 2.3% in May. Economists had expected orders to rise by 0.7% compared with a decrease of 1.3%, which was originally reported.

Most of the DOW components recorded a decline (20 of 30). Outsider were shares of Dow Inc. (DOW; -3.83%). The growth leader was Caterpillar Inc. (CAT; + 2.08%).

All sectors of the S & P finished trading in the red. The largest decline was in the raw materials sector (-1.2%).

At the time of closing:

Dow 27,144.94 -125.03 -0.46%

S & P 500 3,003.92 -15.64 -0.52%

Nasdaq 100 8,238.54 -82.96 -1.00%

U.S. stock-index futures traded mixed on Thursday, as investors digested the latest batch of mixed corporate earnings and the ECB’s comments on monetary policy. 

Global Stocks:

(company / ticker / price / change ($/%) / volume)

AT&T (T) upgraded to Neutral from Underperform at Credit Suisse; target $29

UPS (UPS) upgraded to Buy from Neutral at BofA/Merrill; target $130

Freeport-McMoRan (FCX) upgraded to Sector Perform at RBC Capital Mkts

Int'l Paper (IP) reported Q2 FY 2019 earnings of $1.15 per share (versus $1.19 in Q2 FY 2018), beating analysts’ consensus estimate of $1.00.

The company’s quarterly revenues amounted to $5.667 bln (-2.8% y/y), missing analysts’ consensus estimate of $5.771 bln.

IP fell to $43.66 (-1.04%) in pre-market trading.

Comcast (CMCSA) reported Q2 FY 2019 earnings of $0.78 per share (versus $0.65 in Q2 FY 2018), beating analysts’ consensus estimate of $0.75.

The company’s quarterly revenues amounted to $26.858 bln (+23.6% y/y), generally in line with analysts’ consensus estimate of $27.081 bln.

CMCSA rose to $45.30 (-0.96%) in pre-market trading.

3M (MMM) reported Q2 FY 2019 earnings of $2.20 per share (versus $2.59 in Q2 FY 2018), beating analysts’ consensus estimate of $2.07.

The company’s quarterly revenues amounted to $8.171 bln (-2.6% y/y), generally in line with analysts’ consensus estimate of $8.105 bln.

The company also reaffirmed guidance for FY 2019, projecting EPS of $9.25-9.75 versus analysts’ consensus estimate of $9.36.

MMM rose to $187.50 (+4.50%) in pre-market trading.

Ford Motor (F) reported Q2 FY 2019 earnings of $0.28 per share (versus $0.27 in Q2 FY 2018), missing analysts’ consensus estimate of $0.31.

The company’s quarterly revenues amounted to $35.905 bln (+0.4% y/y), beating analysts’ consensus estimate of $35.207 bln.

The company also issued downside guidance for FY 2019, projecting EPS of $1.20-1.35 versus analysts’ consensus estimate of $1.39.

F fell to $9.79 (-5.23%) in pre-market trading.

Tesla (TSLA) reported Q2 FY 2019 loss of $1.12 per share (versus -$3.06 in Q2 FY 2018), worse than analysts’ consensus estimate of -$0.36.

The company’s quarterly revenues amounted to $6.350 bln (+58.7% y/y), missing analysts’ consensus estimate of $6.441 bln.

The company also said it continued to aim for positive GAAP net income in Q3 and the following quarters.

TSLA fell to $233.20 (-11.96%) in pre-market trading.

Facebook (FB) reported Q2 FY 2019 earnings of $1.99 per share (versus $1.74 in Q2 FY 2018), beating analysts’ consensus estimate of $1.87.

The company’s quarterly revenues amounted to $16.886 bln (+27.6% y/y), beating analysts’ consensus estimate of $16.493 bln.

FB rose to $207.70 (+1.49%) in pre-market trading.