Closing Bell: Stocks Down on Semi Swings, Earnings Disappointment from NFLX, UAL, GE

Stocks lost ground Thursday with semiconductor shares weighing on markets despite some encouraging economic data and strong quarterly reports from S&P 500 giants.

The technology-heavy Nasdaq-100 (NDX) led the decline with a drop of 1.62% to 29,025.77 and the PHLX Semiconductor Index tumbled 4.29%. The S&P 500 (SPX) fell 0.51% to 7,533.77, and the Dow Jones Industrial Average ($DJI) slipped 0.20% to 52,552.97. Small caps were comparatively resilient, with the Russell 2000 essentially flat.

U.S. crude oil futures took a bit of a breather, settling near $79.40 per barrel. The decline in June gasoline prices supported auto purchases and online spending, which was reflected in June retail sales that met expectations at 0.2%. That pace was slower than May’s revised 1.0% gain. And core retail sales slipped 0.2% in June. Weekly jobless claims came in below forecasts. For the bulls: the Philadelphia Fed Business Index surged to 41.4 in its strongest reading since November 2021.

Three things to watch from Thursday’s market:

Earnings from Netflix (NFLX), United Airlines (UAL), GE Aerospace (GE) Disappoint; Temp Warmer for UnitedHealth (UNH): Netflix shares tumbled 8% in after-hours trading after reporting quarterly results that included a revenue miss and projections for slower sales growth. The options market had priced in a possible post-earnings NFLX price range of $68 to $79. GE Aerospace slumped 4% despite raising full-year guidance on strength in commercial services and orders. It reported adjusted EPS of $2.02 per share on adjusted revenue of $12.6 billion. United Airlines slipped nearly 2%, despite producing Q2 earnings that beat estimates at $1.99 per share, on revenue of $17.67 billion. Fuel-cost pressure weighed on the outlook despite full-year adjusted EPS guidance of $9 to $11. In the green: UnitedHealth Group (UNH) shares rose 1% after reporting Q2 adjusted earnings of $6.38 per share and revenue of $112.0 billion, which topped expectations. It raised its 2026 adjusted EPS outlook.

Semiconductors and Technology Under Pressure: Chip stocks sold off with South Korea's Financial Services Commission (FSC) saying Thursday that it will suspend new listings of single-stock, leveraged exchange-traded funds, and it will triple the minimum deposit required to invest in them, to about $20,285, starting Aug. 5, Reuters reports. This hit SK Hynix (SKHY) shares hard, with the newly minted U.S. depositary receipts declining nearly 14%.

Taiwan Semiconductor (TSMC) slipped more than 2%, despite Q2 results that were stronger than expected with an upbeat Q3 revenue outlook and second-quarter EPS of $4.31, topping consensus estimates. But U.S. traders and investors continue to focus on the sustainability of AI-related capital spending, and Taiwan Semi announced Thursday another $100 billion in U.S. investment to expand its U.S. manufacturing capacity, including four more advanced fabrication plants in Arizona. This brings its U.S. chipmaking commitments to $265 billion, according to an ABC News report. Micron Technology (MU) shares fell nearly 6%, while Advanced Micro Devices (AMD) was off by more than 5%.

Apple (AAPL) shares rose 1.6% as traders and investors continue to rotate into Magnificent 7 values and away from the chip sector. Apple is preparing an iPad mini overhaul with an OLED screen as early as this fall, Bloomberg reported. Jefferies pushed back on enthusiasm around China’s approval of an Alibaba Group Holding (BABA) model for Apple Intelligence, calling it a “non-event” and keeping a Hold rating on the stock. Alibaba shares were down fractionally in US trading Thursday.

Economic Calendar, Friday, July 17

• 08:30 AM: Housing Starts and Permits
• 08:30 AM: Import/Export Prices
• 09:15 AM: Industrial Production
• 10:00 AM: Michigan Consumer Sentiment

Earnings Calendar, Friday, July 17

• Premarket: The Travelers Companies (TRV), Truist Financial (TFC), Fifth Third Bancorp (FITB), Regions Financial (RF)
• Postmarket: n/a

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