STORY: The S&P 500 and Nasdaq ended a bumpy session weaker on Thursday, failing to regain ground lost in the previous day's tech-triggered sell-off.
The Dow added two-tenths of a percent, the S&P lost half a percent and the Nasdaq fell more than nine-tenths of a percent.
All three indexes were up for most of the session on the heels of stronger-than-expected second-quarter GDP data.
Megacap stocks traded higher mid-afternoon, only to fall later in the day, with Meta Platforms, Microsoft and Nvidia all ending lower.
Lackluster earnings from both Tesla and Alphabet had pummeled Magnificent 7 stocks a day earlier, causing the S&P and Nasdaq to log their worst day since 2022.
Alphabet's shares dipped again on Thursday, falling 3% to the stock's lowest close since May 6.
But Tesla rebounded 2%.
Four more megacap tech companies report earnings next week.
But while Brad Bernstein, managing director at UBS Private Wealth Management, called their results "critical," it's the rest of the market he's excited about.
"We actually think the big story in earnings season this month will be the fact that for the first time in two years, we're going to have earnings growth in the non-Magnificent 7 of the S&P 500. So the 493 other stocks that have had no earnings growth collectively over the last several years are finally going to have earnings growth. And we think that bodes very well for the rally to continue because earnings are now growing from other areas within the market."
Among earnings-driven moves, IBM shares jumped more than 4% after the tech company beat estimates for second-quarter revenue and raised the annual growth forecast for its software business.
Shares of American Airlines rose more than 4% after the company said it had taken swift action to reset its sales and distribution strategy, which had driven away corporate travelers.
Meanwhile, shares of Southwest Airlines climbed 5.5% after saying it would end open seating on its flights.
On the flip side, Ford shares plummeted more than 18% after the automaker's second-quarter adjusted profit missed estimates by a wide margin.
