Stock market today: Dow dips on Disney dive, but Google flexes muscle to lift tech

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Stock market today: Dow dips on Disney dive, but Google flexes muscle to lift tech -- The Dow closed lower Thursday, driven by a dive in Disney and ongoing turmoil in regional banks, but another day of big gains for Google kept losses in check.

The Dow Jones Industrial Average fell 0.7%, or 221 points, the Nasdaq gained 0.2%, and the S&P 500 fell 0.2%.

Regional banks remained in the firing line as PacWest Bancorp (NASDAQ: PACW ) slumped 22% after reporting that deposits fell 9.5% for the week ended May 5, keeping fears of a deeper bank run front and center.

For the second day in a row, Alphabet (NASDAQ: GOOGL ) led the climb in big tech as the tech giant’s announcement that it would incorporate generative artificial intelligence into products including search drew positive remarks from Wall Street.

“Showcasing tight integration of Bard into other Google products (Maps, travel, Workspace, Gmail, etc) may flip the narrative that Google is behind and moving too slowly,” UBS said in a note.

Microsoft's (NASDAQ: MSFT ) early investment in ChatGPT, however, gives it a “key head start on the AI front…with Google now playing major catchup mode,” Wedbush said in a note.

Falling Treasury yields , meanwhile, continued to support growth stocks like tech higher as bets on a Fed rate cut were supported by data showing further signs of easing inflation and a pick-up in jobless claims.

The producer price index for April rose 0.2%, slower than the 0.3% economists had expected, and slowed to 3.2% on an annualized basis from 3.4% in March.

Weekly initial jobless claims , meanwhile, rose by 22,000 to 264,000 for the week ended May 5. That was the highest since October 23.

If next week’s jobless claims come in at a similar level to today, they would be 18,000 higher than the prior survey week, implying “slower payroll growth and lower household employment as well,” Jefferies said in a note.

The earnings front was dominated by Walt Disney (NYSE: DIS ), down 8%, after the entertainment company reported an unexpected decline in Disney+ subscribers amid quarterly results that showed in-line earnings and better-than-expected revenue.

Duestche Bank said it would buy the dip in Disney on expectations that cost-cutting, streaming ad growth, and the company’s strength in direct-to-consumer pricing would support longer-term profitability.

Beyond Meat (NASDAQ: BYND ) fell more than 18% as its better-than-feared quarterly results were overshadowed by the announcement that the company plans to sell up to $200 million of its common stock.

Robinhood Markets Inc (NASDAQ: HOOD ), up 6%, reported first-quarter results that topped Wall Street estimates, driven by “better securities lending related revenues,” Goldman Sachs said, though added it remained neutral on the stock.

“We remain neutral rated on shares, and would look for signs of growth in more recurring and less cyclical revenue streams to get more positive on the stock,” it added.

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