US open: Stocks mixed as Iran talks, earnings updates dominate

(Sharecast News) - Major indices were mixed early on Thursday as markets paused following yesterday's rally, with geopolitical developments and fresh earnings updates in focus.

As of 1500 BST, the Dow Jones Industrial Average was down 0.06% at 49,881.66, while the S&P 500 ticked up 0.01% to 7,366.18 and the Nasdaq Composite came out of the gate 0.27% firmer at 25,908.23.

The Dow opened 28.93 points lower on Thursday, doing little to impact solid gains recorded in the previous session after Axios reported that the US and Iran were nearing a deal to end their conflict.

Two US officials and two additional sources briefed on the matter told CNBC that the White House believed it was close to finalising a one‑page, 14‑point memorandum of understanding that would not only end the conflict with Iran but also set out a framework for more detailed nuclear negotiations. An Iranian foreign ministry spokesperson said Tehran was evaluating a fresh US proposal aimed at securing a resolution.

Oil prices headed south on the news, with West Texas Intermediate crude futures dropping 3.90% to $91.37 a barrel, while international benchmark Brent crude futures slipped 3.80% to $97.42 per barrel.

Alongside easing geopolitical tensions, a strong US earnings season also underpinned sentiment, with DoorDash reporting better‑than‑expected first‑quarter results, as earnings of $0.42 per share beat the $0.36 consensus estimate, although revenues of $4.04bn came in slightly below forecasts of $4.14bn. DoorDash also guided for second‑quarter marketplace gross order value of $32.4bn to $33.4bn, ahead of analysts' expectations of $32.43bn, as the delivery platform continues to invest in new technology to drive customer growth.

In terms of Thursday's earnings, McDonald's posted better‑than‑expected first‑quarter results, as higher spending in its US restaurants helped lift results despite what chief executive Chris Kempczinski described as a challenging operating backdrop. Adjusted earnings came in at $2.83 per share, ahead of the $2.74 expected, while revenues rose 9% year‑on‑year to $6.52bn, also topping forecasts. The fast‑food giant reported net income of $1.98bn, up from $1.87bn a year earlier.

Airbnb and Expedia were slated to report earnings after the close.

On the macro front, US employers announced 83,387 job cuts in April, according to Challenger, Gray and Christmas, the highest total in three months and up from 60,620 in March. However, despite the month‑on‑month increase, layoffs were still 21% lower than in at the same time a year earlier, although the latest figure also marked the third‑highest April total since 2009. The tech sector once again accounted for the largest share of reductions, with 33,361 planned cuts, followed by warehousing at 5,743 and services at 4,110. Artificial intelligence was cited as the reason for 26% of all layoffs - leading all categories for the second consecutive month. So far in 2026, employers have announced 300,749 job cuts, down 50% on the same period in 2025, with tech being the biggest contributor with 85,411 cuts, while AI‑related reductions totalled 49,135, making it the third‑largest driver of layoff plans this year.

On another note, Americans lined up for unemployment benefits at an accelerated pace in the week ended 2 May, according to the Labor Department, after hitting a 57-year low a week earlier. US initial jobless claims rose by 10,000 from the previous week's upwardly revised level to 200,000, below market expectations of 205,000. Continuing claims, on the other hand, fell by 10,000 to 1.76m, their lowest level since 2024, while the four-week moving average, which aims to strip out week-to-week volatility, dropped by 4,500 to 203,250. The advance seasonally adjusted insured unemployment rate came to 1.2% for the week ended 25 April, unchanged from the previous week's unrevised rate.

Still on data, US labour productivity rose at a slower pace in the first quarter, according to preliminary figures from the Bureau of Labor Statistics, with non‑farm business sector productivity increasing 0.8% on an annualised basis, down from a revised 1.6% gain in the final quarter of 2025 and short of the 1.4% expected by economists. Output grew 1.5% in the period, while hours worked rose 0.7% after a decline at the end of last year. Manufacturing productivity was notably stronger, rising 3.6% as output increased 3.3% and hours worked fell 0.4%, while durable goods manufacturing posted a 5.3% productivity gain and non-durable manufacturing rose 2%. On a year‑on‑year basis, productivity was up 2.9% in the first quarter, the strongest reading since the third quarter of 2024.

Elsewhere, the BLS said unit labour costs increased 2.3% in the quarter, reflecting a 3.1% rise in hourly compensation and the 0.8% productivity gain. Over the past four quarters, unit labour costs were up 1.2%.

Still to come, February and March construction spending figures were slated for release at 1530 BST, while March consumer credit change figures will follow at 2000 BST.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Microsoft Corp. (MSFT) $421.74 3.72%

Salesforce.Com Inc. (CRM) $186.20 2.41%

Apple Inc. (AAPL) $288.53 2.22%

Walt Disney Co. (DIS) $110.02 2.20%

McDonald's Corp. (MCD) $285.30 1.34%

International Business Machines Corporation (CDI) (IBM) $228.38 1.10%

Nike Inc. (NKE) $44.33 1.05%

Home Depot Inc. (HD) $325.96 0.94%

Intel Corp. (INTC) $113.55 0.93%

Visa Inc. (V) $321.68 0.82%

Dow Jones - Fallers

Dow Chemical Co. (DOW) $37.46 -2.62%

Chevron Corp. (CVX) $181.33 -2.05%

Caterpillar Inc. (CAT) $916.66 -0.86%

Coca-Cola Co. (KO) $78.48 -0.72%

Cisco Systems Inc. (CSCO) $92.06 -0.46%

Procter & Gamble Co. (PG) $146.96 -0.41%

Travelers Company Inc. (TRV) $300.95 -0.35%

Amgen Inc. (AMGN) $330.58 -0.25%

Merck & Co. Inc. (MRK) $112.99 -0.18%

Verizon Communications Inc. (VZ) $47.47 -0.17%

S&P 500 - Risers

Fortinet Inc. (FTNT) $109.48 21.95%

W.W. Grainger Inc. (GWW) $1,251.03 9.12%

Albemarle Corp. (ALB) $209.00 7.47%

H&R Block Inc. (HRB) $33.20 5.73%

Idexx Laboratories Inc. (IDXX) $579.58 5.01%

United Airlines Holdings Inc (UAL) $102.55 4.99%

Intuit Inc. (INTU) $398.53 4.57%

Gen Digital Inc. (GEN) $20.11 4.09%

Skyworks Solutions Inc. (SWKS) $65.51 3.98%

Gartner Inc. (IT) $155.51 3.89%

S&P 500 - Fallers

Zoetis Inc (ZTS) $89.64 -20.16%

Whirlpool Corp. (WHR) $46.78 -15.59%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Apache Corp. (APA) $36.25 -7.17%

Tapestry Inc. (TPR) $138.84 -6.28%

Helmerich & Payne Inc. (HP) $37.35 -5.33%

Lincoln National Corp. (LNC) $36.80 -4.59%

Willis Towers Watson Public Limited Company (WTW) $253.93 -4.27%

CF Industries Holdings Inc. (CF) $115.47 -3.47%

Diamondback Energy Inc. (FANG) $190.23 -3.45%

Nasdaq 100 - Risers

Idexx Laboratories Inc. (IDXX) $579.58 5.01%

Tesla Inc (TSLA) $413.59 4.98%

Workday, Inc. (WDAY) $127.51 4.97%

Biomarin Pharmaceutical Inc. (BMRN) $54.74 4.60%

Intuit Inc. (INTU) $398.53 4.57%

Gen Digital Inc. (GEN) $20.11 4.09%

Skyworks Solutions Inc. (SWKS) $65.51 3.98%

DENTSPLY Sirona Inc. (XRAY) $11.29 3.89%

Autodesk Inc. (ADSK) $249.70 3.73%

Microsoft Corp. (MSFT) $422.44 3.72%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Broadcom Inc. (AVGO) $419.12 -2.81%

Henry Schein Inc. (HSIC) $72.39 -2.60%

Verisk Analytics Inc. (VRSK) $172.15 -2.28%

Expedia Group Inc. (EXPE) $247.33 -2.05%

Booking Holdings Inc. (BKNG) $169.57 -1.98%

Kraft Heinz Co. (KHC) $23.18 -1.67%

QUALCOMM Inc. (QCOM) $188.60 -1.50%

Charter Communications Inc. (CHTR) $157.17 -1.46%

Applied Materials Inc. (AMAT) $418.01 -1.26%