Stocks gave back gains Thursday and tech shares slumped again, sending the Nasdaq Composite lower. Sharp declines in shares of chip companies on Wednesday saw the
Nasdaq Composite
fall 2.8%, the indexâs worst performance since December 2022.
Taiwan Semiconductor Manufacturing
reported second-quarter earnings that beat analystsâ estimates and the worldâs largest contract chip maker boosted its revenue projections for the full year. The company said second-quarter revenue from its high-performance computing segment, which includes artificial-intelligence chips, rose 28% from the previous quarter. U.S.-listed shares of the company were down 1.4% after rising earlier in the session. They fell 8% on Wednesday after former President Donald Trump said in an interview that Taiwan should be paying the U.S. for defense. On Taiwan, Trump told Bloomberg Businessweek that the country âdid take about 100% of our chip business.â
The revenue outlook hike from TSMC was giving a lift to
Nvidia
,
which rose 2% after the maker of chips that are the favored choice for training artificial-intelligence systems fell 6.6% on Wednesday.
Nokia
âs
U.S.-listed stock declined 6.2% after the Finnish telecommunications company reduced sales expectations for the year after net sales in the second quarter declined 18%.
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Chuyâs Holdings
jumped 48% to $37.40 after
Darden Restaurants
agreed to acquire the Tex-Mex restaurant chain for about $605 million. Darden declined 1.7%.
Beyond Meat
dropped 10% after The Wall Street Journal reported the plant-based meat maker was engaged in discussions with a group of bondholders about restructuring its balance sheet.
Netflix
was down 0.3% ahead of its second-quarter earnings report scheduled for after the closing bell Thursday. The streaming company is expected by Wall Street to report earnings of $4.74 a share on revenue of $9.5 billion, an increase of 16% from a year earlier. Itâs expected that
Netflix
added about 4.5 million net new subscribers in the quarter.
Dominoâs Pizza
dropped 13% after the pizza chain posted second-quarter earnings that beat estimates but revenue, up 7.1% from a year earlier, slightly missed forecasts.
Warner Bros. Discovery
was rising 6.5% after the Financial Times reported the company was considering a number of strategic options, including splitting off its digital streaming and studio businesses from its television networks.
D.R. Horton
,
the nationâs largest home builder, jumped 11%. The company beat quarterly earnings expectations and said it would launch a new stock buyback of $4 billion. Homes closed rose to 24,155 from 22,985 a year earlier.
Eli Lilly
was down 5.6%, extending losses from Wednesday that saw the stock fall 3.8% after Swiss drugmaker
Roche
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disclosed promising trial data for its weight-loss medicine.
United Airlines
posted second-quarter adjusted earnings of $4.14Â a share, beating analystsâ estimates of $3.94. Shares of the carrier were up 1.4%. United issued third-quarter earnings guidance that fell short of expectations. United said it has been managing the business in the face of industry-wide challenges, specifically a drop in the industryâs domestic capacity growth rate, which it anticipated.
Write to Joe Woelfel at joseph.woelfel@barrons.com
