Today’s Stock Market: Most Wall Street Stocks Rise, But Falls in Some Big Tech Stocks Pull Indexes Down

FILE – People pass the New York Stock Exchange on May 28, 2024 in New York City. Shares in Europe opened higher on Thursday, May 30, 2024, after falling in Asia. US futures fell and oil prices fell. (AP Photo/Peter Morgan, file)

NEW YORK (AP) – Most U.S. stocks rose Thursday, but indexes nonetheless fell as some influential technology giants fell sharply. Salesforce is having its worst day in almost 20 years.

The S&P 500 index fell 31.47 points, or 0.6%, to 5,235.48, even as most stocks on the index and on Wall Street were higher. The Dow Jones Industrial Average fell 330.06, or 0.9%, to 38,111.48, and the Nasdaq composite lost 183.50, or 1.1%, to 16,737.08.

Salesforce, which helps companies manage customers, lost almost a fifth of its value after reporting weaker revenue for the latest quarter than analysts expected. The cloud-based software company also provided revenue guidance for the current quarter and fiscal year that lagged Wall Street earnings. Shares fell 19.7%.

Kohl’s fell even further – 22.9% – after reporting a surprise loss for the most recent quarter when analysts expected a profit. The retailer said sales were down from a year earlier as customers pulled out of sales. Due to the stumble, it lowered its sales forecasts for this year.

Nvidia finally ran out of momentum after it topped analyst expectations in its latest earnings report, further fueling Wall Street’s frenzy around artificial intelligence technology. Nvidia fell 3.8%, its first decline since rising more than 20% after last week’s earnings report. The chip company had even more weight on the S&P 500 than Salesforce.

The market was supported by better-than-expected earnings reports from various companies. Best Buy beat forecasts even though its revenue fell below expectations last quarter and its stock rose 13.4%. Foot Locker gained 15% after it also posted a better-than-expected profit even though sales rose below analyst forecasts.

Stocks also broadly appreciated as Treasury yields eased in the bond market. That helped most stocks on Wall Street rise, with smaller stocks in the Russell 2000 index rising 1%.

The decline in yields provided relief after they rose earlier in the week on concerns about weak demand for Treasuries following several U.S. government auctions. Higher rates of return put downward pressure on all types of investments.

Yields fell on Thursday after several reports showed the U.S. economy was not as strong as expected. The hope on Wall Street is that the economy can be cooled, but not too much, so that the Federal Reserve can land precisely where high inflation can be brought under control without causing a major recession.

One report showed that more American workers than expected filed for unemployment benefits last week, although the number of layoffs remains low compared to history. Another suggested that overall growth in the U.S. economy may not have been as strong as previously thought.

A slowing economy could increase the Federal Reserve’s confidence that inflation is firmly on track to its 2% target. That, in turn, could persuade him to lower the federal funds rate, which has remained at its highest level in more than two decades.

The yield on the 10-year Treasury fell to 4.54% from 4.62% late Wednesday. The yield on two-year bonds, which more closely reflects expectations for Fed action, fell to 4.92% from 4.98%.

More important data is likely to come on Friday, when the U.S. government provides its latest monthly update of the Federal Reserve’s preferred inflation rate. According to Chris Larkin, managing director of trading and investing at E-Trade at Morgan Stanley, the report “could dominate market sentiment until the jobs report next Friday.”

Until then, the main factor influencing the market will be the end of the earnings reporting season. Earnings were largely better than expected for early 2024.

Outside of Salesforce, other technology-related companies have seen warmer market reception for their latest earnings reports.

C3.ai rose 19.4% after the software maker beat expectations on both earnings and revenue in the latest quarter. HP gained 17% after beating earlier profit forecasts.

Many retailers are also reporting, as they usually do at the end of each earnings season, and scrutiny is heightened over concerns about whether American households will be able to keep spending. Persistently high inflation harms them, especially those with lower incomes.

Dollar General moved from profit to loss after beating profit forecasts and beating revenue expectations in the most recent quarter. The retailer, which serves many lower-income customers, said it saw a significant increase in traffic to its stores throughout the quarter. Dollar General also provided a full-year earnings forecast that was in line with analyst expectations, but the forecast for this quarter fell short. Shares fell 8.1%.

Build-A-Bear Workshop fell 13.9%. The company, which allows customers to build their own stuffed animals, saw a bigger drop in revenue and earnings last quarter than analysts expected. The company said it faces an “overall weaker spending environment” that is hampering its business.

On foreign stock exchanges, indexes in much of Europe rose slightly after difficulties in Asia.

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AP business writers Matt Ott and Elaine Kurtenbach contributed.