S&P 500 ekes out a gain, Dow tumbles 500 points to post three-day losing run: Live updates

The S&P 500 inched 0.1% higher on Thursday, snapping a two-day losing streak.

The Dow and Nasdaq Composite lost 1.3% and 0.1%, respectively, in the session. Both notched their third-straight losing sessions.

All three indexes ended the holiday-shortened trading week in the red.

— Alex Harring

Ahead of Coty's June analyst day and fiscal third-quarter earnings release, Raymond James downgraded the beauty stock to a market perform rating from outperform.

Analyst Olivia Tong wrote that catalysts for the downgrade were headwinds including "challenging comps in Prestige Fragrance and growing uneasiness about the sustainability of demand, weakness in Consumer Beauty, and slower margin expansion from here with margins already at peak levels after significant expansion."

To accompany the downgrade, Tong removed her $9 price target. Shares of Coty have plunged 33% this year.

On the positive side, Tong added that Coty has a big enough U.S. manufacturing footprint to mitigate tariff exposure, since the company's China manufacturing facility is only used for local consumption.

— Lisa Kailai Han

Wall Street is largely sticking by Netflix and its lofty growth ambitions ahead of the company's first-quarter earnings due after market close Thursday. Shares were last 1.6% higher in afternoon trading.

The streaming giant is kicking off a vital earnings season for megacap tech stocks, which have come under pressure as tariff uncertainties test markets. Netflix stands apart, however, as its shares have jumped 9.6% this year while the broader market has tumbled by roughly the same percentage.

Several analysts view Netflix as a largely recession-proof stock given its strong competitive moat and its subscription-based service, which is not directly affected by U.S. tariffs or levies from other countries.

Major firms think Netflix's long-term outlook of reaching a $1 trillion valuation by 2030 is realistic. Still, concerns remain about the company's standing in a competitive streaming environment and its resilience in the face of a potential recession, as a squeeze on consumer discretionary spending could weigh on subscription growth. Analysts are watching for other growth opportunities — particularly in advertising — when the company reports its results.

For more on what analysts are looking to see from Netflix's results, read here in CNBC Pro.

— Pia Singh

Loop Capital analyst Anthony Chukumba upgraded eyeglass retailer Warby Parker to a buy rating from hold in a Thursday note.

In the note, Chukumba stood by his $27 price target. This implies that shares of Warby Parker could rally 89% from their Wednesday closing price.

Shares of Warby Parker have plummeted 41% this year, opening up a good buying opportunity for investors, the analyst wrote.

"We believe the sell-off in Warby Parker shares year to date (down [41%], as compared to a 9% decline in the S&P 500) is well overdone and provides a long-awaited attractive entry point," he said.

The analyst added: "While we do not believe Warby Parker would be completely immune from a potential economic downturn, we think the company would be a relative outperformer for three primary reasons: (1) vision correction products are a non-discretionary medical necessity; (2) the US optical industry is highly fragmented, thereby providing Warby Parker with an ample market share gain opportunity; and (3) the company has a compelling consumer value proposition, including offering high quality, stylish eyeglasses at value price points in a vibrant and exciting store environment."

WRBY YTD chart

GPN drops

Apple is the only "Magnificent Seven" member on track to advance in Thursday's session.

Shares of the tech titan rose more than 1% on Thursday. By comparison, CNBC's Magnificent Seven Index slid 0.7%, led down by Nvidia's 3.5% decline.

Apple vs. CNBC's Magnificent Seven index

While Apple was able to buck Thursday's downtrend, all seven members of the index are on track to record losses for this week.

— Alex Harring

Check out the companies making headlines in midday trading:

• Alphabet — Shares of the megacap technology name pulled back 1.2% after a federal judge ruled that Google has illegally monopolized online advertising technology, namely the markets for publisher ad servers and ad exchanges.
• Hertz — The rental car company surged 50% to a 52-week high, following a 56% rally in the previous session, after Bill Ackman's Pershing Square took a sizable stake. A regulatory filing revealed Pershing Square had built a 4.1% position as of the end of 2024. Pershing has significantly increased the position — to 19.8% — through shares and swaps, becoming Hertz's second-largest shareholder, CNBC reported.
• Nvidia, Advanced Micro Devices — Shares of Nvidia dipped nearly 3% and AMD declined 1%, continuing their declines from the previous session when the chipmakers announced additional charges tied to China exports due to Trump's tariff plans.

For the full list, read here.

— Pia Singh

Small-cap stocks sidestepped the broader market weakness seen this week.

The small cap-focused Russell 2000 rose nearly 1% on Thursday, bringing its week-to-date gain above 1%. While the S&P 500 also advanced in the session, the broad market benchmark was down 1% on the week.

Russell 2000 vs. S&P 500 this week

In a Thursday note, BMO Capital Markets analyst Evan David Seigerman downgraded shares of pharmaceutical giant Novo Nordisk to a market perform rating.

Seigerman used the analogy of the tortoise and the hare, saying that despite its first mover advantage and early lead, Novo Nordisk had started to falter against competitor Eli Lilly.

"We believe obesity competitor Lilly has made sizable advancements in its commercial and clinical portfolio, causing it to overtake Novo's early lead. Key updates from Lilly's oral GLP1, orforglipron are likely to pressure shares, only to be compounded by what we believe to be a softer 1Q," the analyst wrote. "We're moving to the sidelines until Novo can demonstrate clinical/commercial prowess."

In the same note, Seigerman cut his price target to $64 per share. This represents upside of less than 2% from Novo Nordisk's Wednesday closing price of $62.88.

Shares of Novo Nordisk have tumbled 27% in 2025.

NVO YTD chart

GOOGL, 1-day

The stock's decline puts its year-to-date losses at more than 20%, and it currently sits more than 27% from its recent high.

— Sean Conlon

The anti-diabetes, anti-obesity segment of the health-care market has a paired trade to watch.

Eli Lilly soared as much as 16.8% on Thursday after saying its weight loss pill succeeded in a late-stage trial on diabetes patients. Still, Lilly remains about 13% off its all-time high reached last August.

In response, arch rival Novo Nordisk's American Depositary Receipts, or ADRs, tumbled as much as 8.9% to a 52-week low Thursday, leaving it 60% below its all-time high reached last June.

Lilly vs Novo Nordisk shares over past 12 months.

Nvidia shares were under pressure once again, losing 4% after dropping 6.9% on Wednesday. The declines in the chipmaker follow the company disclosing the U.S. government has restricted its semiconductor exports to China — a key market for Nvidia.

Shares are now down about 10% this week.

Nvidia this week

In early trading Thursday, UnitedHealth Group was single-handedly responsible for slicing more than 762 points off the Dow.

Since the Dow is weighted by an individual company's share price, rather than its entire market value — as the S&P 500 is calculated — every $1 move in any stock in the 129-year-old average moves the Dow up or down 6.15 points.

UnitedHealth shares tumbled as much as $123.92 on Thursday, to $461.12. Multiply that decline by 6.15, and the net effect is a reduction of 762.1 points off the Dow.

UNH shares over past three months.

iShares US Healthcare Providers ETF

Manufacturing activity in the Philadelphia region declined sharply in April, according to a new survey.

The Philadelphia Fed diffusion index for general activity dropped to -26.4 in April, down from 12.5 in March. Economists surveyed by Dow Jones were expecting a reading of 3.5.

"Nearly 39 percent of the firms reported decreases in general activity this month, while 13 percent reported increases; 41 percent reported no change. The index for new orders also fell sharply, from 8.7 in March to -34.2 this month, its lowest reading since April 2020," the release said.

Even as the activity index declined, the prices paid index ticked up.

— Jesse Pound

Here are some stocks making big moves in premarket trading on Thursday:

• Hertz — Shares of the rental car company soared nearly 16%, extending the gains seen in the previous session. On Wednesday, the stock skyrocketed more than 56% after Bill Ackman's Pershing Square disclosed that it had taken a sizable stake in the name.
• UnitedHealth — The stock plunged more than 19% after the insurer's first-quarter results missed analysts' estimates. UnitedHealth reported adjusted earnings of $7.20 per share on revenue of $109.58 billion, below the $7.29 in earnings per share and $111.60 billion that analysts surveyed by LSEG were looking for. The company also slashed its full-year guidance.
• Eli Lilly — The pharmaceutical stock surged 11% after phase-three trial results for a pill to treat weight loss and diabetes showed positive results.

Read the full list here.

— Sean Conlon

Jobless claims for the week that ended April 12 totaled 215,000, while economists polled by Dow Jones expected a print of 225,000. The report comes as investors assess the effect of tariffs on the U.S. economy.

— Fred Imbert

The European Central Bank cut interest rates by 25 basis points on Thursday, a move that was widely expected.

The cut brings the central bank's deposit facility rate to 2.25%. That is down from highs of 4% in mid-2023.

"The euro area economy has been building up some resilience against global shocks, but the outlook for growth has deteriorated owing to rising trade tensions," the central bank said in its monetary policy statement.

— Sophie Kiderlin

Shares of American Express were under pressure in premarket trading despite first-quarter results that beat expectations.

American Express reported $3.64 in earnings per share on $16.97 billion of revenue. Analysts surveyed by LSEG were expecting $3.46 in earnings per share and $16.94 billion in revenue.

However, the company maintained its full-year guidance for revenue and earnings despite the strong first quarter. Non-interest revenue of $12.80 billion was also slightly below analysts' expectations of $12.86 billion, according to StreetAccount.

Shares were down about 1.2% in premarket trading.

— Jesse Pound

Shares of Eli Lilly moved sharply higher Thursday morning.

The drug, known as orforglipron, also appeared to help with weight loss. The trial showed that patients taking the highest dose lost an average of 16 pounds over 40 weeks.

Eli Lilly said that safety profile of the drug trial was consistent with other GLP-1 weight loss drugs. The Eli Lilly drug is a pill, while many of the most popular weight loss treatments require an injection.

— Jesse Pound

Taiwan Semiconductor Manufacturing Company stock on Thursday.

TSMC reported first-quarter revenue of $839.25 billion New Taiwan dollars, while analysts polled by LSEG were looking for NT$835.13 billion. The company reiterated a forecast for annual revenue growth in 2025 of roughly 20%.

TSMC is currently subject to the blanket 10% tariff instituted by Trump. The company could face duties as high as 32% once Trump's 90-day pause on his "reciprocal tariffs" ends.

— Brian Evans

UnitedHealth shares plunged 19% before the bell on Thursday after the insurer posted weak earnings and guidance.

The company earned $7.20 per share, excluding items, on $109.58 billion of revenue in the first quarter. Analysts polled by LSEG penciled in $7.29 in earnings per share and $111.6 billion in revenue.

UnitedHealth also told investors to expect between $26 and $26.50 in earnings per share, excluding items, for the full year. That is down from earlier guidance of between $29.50 and $30. It also came in under the consensus estimate of $29.72 from analysts surveyed by FactSet.

— Alex Harring

Asia-Pacific markets rose Thursday, breaking ranks with Wall Street that declined sharply after U.S. Federal Reserve Chair Jerome Powell cautioned that ongoing trade tensions could challenge the central bank's goals of controlling inflation and spurring growth.

Hong Kong's Hang Seng Index increased 1.61% to end the day at 21,395.14, while Mainland China's CSI 300 closed flat at 3,772.22.

Indian stocks reversed course from losses in early trade. The benchmark Nifty 50 advanced 1.61%, while the broader BSE Sensex surged 1.63% as of 2:15 p.m. Indian Standard Time.

Japan's benchmark Nikkei 225 rose 1.35% to end the day at 34,377.60, while the broader Topix index added 1.29% to 2,530.23.

In South Korea, the Kospi index increased 0.94% to close at 2,470.41, while the small-cap Kosdaq climbed 1.81% to 711.75, after the central bank held interest rates at 2.75%, as expected by economists polled by Reuters.

Australia's S&P/ASX 200 ended the day up 0.78% at 7,819.10.

— Amala Balakrishner

Major U.S. indexes are heading for a weekly decline. The S&P 500 has tumbled 1.63% this week, while the Nasdaq Composite is down 2.5%. The 30-stock Dow has lost 1.35%.

— Pia Singh

U.S. importers are receiving an increase in canceled sailings by freight ships coming out of China, resulting from a pullback in orders driven by President Donald Trump's tariff policies.

Freight company HLS Group recorded a total of 80 canceled sailings out of China, and wrote in a note to clients that carriers have started to suspend or adjust transpacific services amid the U.S.-China trade war. The impact of the diminished freight container traffic to North America will affect links in the economy and supply chain, including the ports and logistics companies moving the freight.

China now faces up to a 245% tariff on imports to the U.S., the White House said Tuesday, although that excludes several electronic devices after Trump's latest tariff exemption. Beijing said last week it raised its levies on U.S. goods to 125%.

Read more here for what freight experts told CNBC.

— Lori Ann LaRocco, Pia Singh