US close: Dow Jones reverses Tuesday's losses

(Sharecast News) - Major indices delivered solid gains on Wednesday as market participants thumbed over a fresh batch of corporate earnings. At the close, the Dow Jones Industrial Average was up 0.18% at 44,193.12, while the S&P 500 advanced 0.73% to 6,345.06 and the Nasdaq Composite saw out the session 1.21% firmer at 21,169.42.

The Dow closed 81.38 points higher on Wednesday, reversing losses recorded in the previous session after Donald Trump threatened to impose tariffs of as much as 250% on pharmaceuticals imported into the US, and the Institute for Supply Management's services PMI unexpectedly fell in July.

Tuesday's ISM services print went a long way to present as a fresh reminder of entrenched inflationary pressures across the US economy, with the 'prices paid' component surging to its highest mark since October 2022. When combined with a further slide in the employment index, the PMI has all but forced the Federal Reserve to lean dovish in the face of persistent price growth and weakening labour market fundamentals.

On Wednesday's macro slate, US mortgage applications rose by 3.1% in the week ended 1 August, according to the Mortgage Bankers Association, trimming the 3.8% decline from the prior week and marking the sharpest growth rate in almost a month. The rebound comes alongside a six-basis-point retreat in benchmark mortgage rates. Applications to refinance a mortgage, which are more sensitive to short-term changes in interest rates, rose by 5.1%, while applications for a mortgage to purchase a new home rose by a more subdued 1.5%.

In the corporate space, Disney hiked FY profit forecasts after both streaming and parks outperformed, though linear TV declines weighed on shares, McDonald's beat expectations as US sales rebounded on promotions, lifting same-store growth to its highest in nearly two years, while Uber posted strong revenue and trip growth, announced a $20bn buyback, and Shopify delivered a 31% surge in revenues and solid free cash flow, but also warned of rising loan losses and margin pressure.

After the close, DoorDash posted Q2 earnings that came in ahead of estimates on the back of record quarterly records, while Airbnb said revenue growth had accelerated in Q2, but warned that growth may not be able to keep up going forward.

Elsewhere, shares in tech behemoth Apple were up 5% after a White House official confirmed that the iPhone maker intended to boost its investment in domestic manufacturing by $100bn, bringing its total US investment to $600bn over the next four years.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Apple Inc. (AAPL) $213.25 5.23% Walmart Inc. (WMT) $103.36 4.08% Intel Corp. (INTC) $20.41 3.57% McDonald's Corp. (MCD) $307.59 2.98% Procter & Gamble Co. (PG) $152.86 1.56% Nike Inc. (NKE) $75.48 1.48% Walgreens Boots Alliance, Inc. (WBA) $11.83 1.41% Travelers Company Inc. (TRV) $267.61 0.91% Cisco Systems Inc. (CSCO) $69.21 0.71% Visa Inc. (V) $339.72 0.68%

Dow Jones - Fallers

Amgen Inc. (AMGN) $284.67 -5.27% Dow Chemical Co. (DOW) $21.30 -4.83% Walt Disney Co. (DIS) $115.17 -2.66% Unitedhealth Group Inc. (UNH) $245.78 -2.08% Microsoft Corp. (MSFT) $524.94 -2.00% Merck & Co. Inc. (MRK) $79.44 -1.67% Caterpillar Inc. (CAT) $428.00 -1.50% Verizon Communications Inc. (VZ) $42.35 -0.75% American Express Co. (AXP) $295.54 -0.37% Chevron Corp. (CVX) $152.82 -0.17%

S&P 500 - Risers

Arista Networks Inc. (ANET) $138.78 17.49% Assurant Inc. (AIZ) $209.86 11.23% Global Payments Inc. (GPN) $85.60 9.09% Fluor Corp. (FLR) $43.90 6.45% Advance Auto Parts (AAP) $60.43 5.85% Apple Inc. (AAPL) $213.25 5.23% Walmart Inc. (WMT) $103.36 4.08% American Airlines Group (AAL) $11.74 3.99% Ross Stores Inc. (ROST) $146.55 3.87% Intel Corp. (INTC) $20.41 3.57%

S&P 500 - Fallers

NRG Energy Inc. (NRG) $148.54 -13.61% Mosaic Company (MOS) $30.93 -13.31% Ipg Photonics Corp. (IPGP) $72.14 -12.56% Perrigo Company plc (PRGO) $23.61 -11.31% DaVita Inc (DVA) $127.81 -9.04% Idexx Laboratories Inc. (IDXX) $624.19 -8.58% Advanced Micro Devices Inc. (AMD) $163.12 -7.59% International Flavors & Fragrances Inc. (IFF) $66.20 -6.32% Vertex Pharmaceuticals Inc. (VRTX) $385.65 -6.14% Iron Mountain Inc (New) (IRM) $90.04 -5.77%

Nasdaq 100 - Risers

Apple Inc. (AAPL) $213.25 5.23% American Airlines Group (AAL) $11.74 3.99% Ross Stores Inc. (ROST) $146.55 3.87% Intel Corp. (INTC) $20.41 3.57% Tesla Inc (TSLA) $319.91 3.32% Amazon.Com Inc. (AMZN) $222.31 3.28% Costco Wholesale Corp. (COST) $968.56 3.16% Vodafone Group Plc ADS (VOD) $11.30 2.73% Fastenal Co. (FAST) $46.78 2.72% O'Reilly Automotive Inc. (ORLY) $104.44 2.63%

Nasdaq 100 - Fallers

Idexx Laboratories Inc. (IDXX) $624.19 -8.58% Qvc Group Inc Series A (QVCGA) $3.23 -7.71% Vertex Pharmaceuticals Inc. (VRTX) $385.65 -6.14% Western Digital Corp. (WDC) $73.78 -5.36% Sirius XM Holdings Inc (SIRI) $20.97 -5.33% Amgen Inc. (AMGN) $284.67 -5.27% Seagate Technology Plc (STX) $147.27 -4.53% DENTSPLY Sirona Inc. (XRAY) $13.68 -4.40% Illumina Inc. (ILMN) $94.43 -4.06% KLA-Tencor Corp. (KLAC) $888.28 -3.34%