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Microsoft ( MSFT ), Meta rise after blowout quarterly results

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Semiconductor stocks weak

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Economic data shows inflation rise, stable labor market

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Indexes: Dow off 0.29%, S&P 500 up 0.01%, Nasdaq 0.27%

(Updates to mid-afternoon trading)

By Chuck Mikolajczak

NEW YORK, July 31 (Reuters) -

U.S. stocks were well off earlier highs on Thursday, as the

Nasdaq and S&P clung to slight gains following the latest swath

of corporate earnings and economic data, with results from

megacaps Amazon ( AMZN ) and Apple ( AAPL ) due after the closing bell.

Microsoft ( MSFT ) posted a

strong earnings

report and briefly surpassed the $4 trillion

market cap threshold

, becoming only the second publicly traded company to ever

touch the milestone after Nvidia ( NVDA ). Its shares were last

up 3.9% after climbing as much as 8.2% on the session.

Meta Platforms ( META ) jumped 11.9% after hitting a record

intraday high of $784.75 as AI-driven growth in its core ad

business powered a bullish revenue forecast.

Still, other AI-related names such as chipmakers Broadcom ( AVGO )

and Nvidia ( NVDA ) were weaker on the session, pulling the PHLX

semiconductor index down more than 3%.

"Looking at the market action today, you have haves and

have-nots, and so you have a couple tech companies, like a lot

of the semiconductor-related and semi-cap equipment-related

stocks are doing pretty poorly," said Ellen Hazen, chief market

strategist at F.L. Putnam Investment Management in Lynnfield,

Massachusetts.

"But then, of course, Microsoft ( MSFT ) is doing pretty well, and

the same thing with Amazon ( AMZN ) and Meta, which are doing really

well."

The Dow Jones Industrial Average fell 130.37 points,

or 0.29%, to 44,330.91, the S&P 500 gained 0.38 points,

or 0.01%, to 6,363.28 and the Nasdaq Composite gained

56.76 points, or 0.27%, to 21,186.44.

The S&P 500 had risen as much as 1% and the Nasdaq as much

as 1.5% earlier in the session. The Nasdaq has not logged a move

of at least 1% in either direction since July 3 while the S&P

last recorded a daily 1% move on June 24.

Earlier economic data from the Commerce Department report showed

inflation picked up in June, with new tariffs pushing prices

higher and stoking expectations that price pressures could

intensify in the coming months, while weekly initial jobless

claims signaled the labor market remained on stable footing.

Investors will now eye Friday's non-farm payrolls report

and a looming tariff deadline, as U.S. President Donald Trump

was expected to issue higher final duty rates for countries that

have not reached an agreement, although Mexico was granted a

90-day reprieve.

U.S. stocks have rallied after a sharp selloff that began

in early April after Trump announced a bevy of sharp tariffs,

only to rebound as deals have been struck with many trading

partners on duty levels. The Dow, S&P 500 and Nasdaq are each on

track for their third straight monthly gain.

Drug stocks were also weaker after the White House said Trump

sent letters to the CEOs of 17 major pharmaceutical companies,

urging immediate action to lower the cost of prescription drugs

for Americans. The NYSE Arca pharmaceutical index was

down 2.3%.

Declining issues outnumbered advancers by a 1.38-to-1 ratio on

the NYSE, and by a 1.71-to-1 ratio on the Nasdaq.

The S&P 500 posted 33 new 52-week highs and 25 new lows while

the Nasdaq Composite recorded 65 new highs and 126 new lows.