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TSMC rises, lifts chips stocks after upbeat results

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Domino's Pizza slumps after Q2 same-store sales miss

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Warner Bros Discovery ( WBD ) jumps on report of mulling break-up

plan

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Jobless claims higher than expected

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Indexes up: Dow 0.03%, S&P 0.32%, Nasdaq 0.57%

(Updated at 9:39 a.m. ET/1339 GMT)

By Lisa Pauline Mattackal and Ankika Biswas

July 18 (Reuters) -

The Nasdaq and the S&P 500 bounced back on Thursday, boosted

by a recovery in megacaps, as an upbeat forecast from Taiwan

Semiconductor Manufacturing lifted chip stocks after a sharp

sell-off in the previous session.

U.S.-listed shares of TSMC jumped 2.1% after the

world's largest contract chipmaker raised its full-year revenue

forecast on surging demand for AI chips.

Apple ( AAPL ) and Nvidia ( NVDA ), both TSMC customers,

rose 0.5% and 2.4%, respectively.

Other chipmakers such as Advanced Micro Devices ( AMD ),

Intel ( INTC ) and Marvell Technology also rose between

0.4% and 2%.

This comes after

chip stocks lost over $500 billion in market value on

Wednesday, following a report that the U.S. was considering

tighter curbs on exports of advanced semiconductor technology to

China, as well as Trump's Taiwan comments.

The Philadelphia SE Semiconductor index rose 1.4%

after logging its worst day in four years on Wednesday.

Most of the so-called "Magnificent 7" stocks rose, including

Microsoft, Tesla and Meta Platforms.

The S&P 500 Tech index led sectoral gains with

a 1% rise, while Healthcare was the worst hit.

This quarterly earnings season will be a significant test

for whether expensively valued megacaps can keep investors

satisfied with strong results.

"Risks in the technology sector got pointed out

yesterday, with continuing trade issues between the U.S. and

China," said Paul Nolte, senior wealth adviser and market

strategist for Murphy & Sylvest.

In corporate results, Domino's Pizza slumped

12.7% after falling short of estimates for quarterly same-store

sales.

Homebuilder D.R. Horton ( DHI ) jumped 8.1%, reversing

its premarket course after higher quarterly profit and a

$4-billion share buyback plan, lifting the PHLX Housing index

to a record high.

The small-cap Russell 2000 rose 0.10% after

snapping a five-day winning streak in the previous session.

Nolte expects the rotation from large tech stocks to

small-cap and value companies to continue, although "not in a

straight line".

The Dow, however, was flat after the index notched its third

consecutive closing high in the last session.

Elsewhere, the Labor Department reported jobless claims rose

to 243,000 for the week ended July 13 - higher than previously

forecast - another signal that the jobs market was cooling.

Traders are pricing in a 93.5% chance of a

25-basis-point rate cut from the Federal Reserve by September,

according to CME's FedWatch.

Comments from Fed officials Lorie Logan, Mary Daly and

Michelle Bowman are also expected later in the day.

At 9:39 a.m. ET, the Dow Jones Industrial Average was

up 13.09 points, or 0.03%, at 41,211.17, the S&P 500 was

up 18.07 points, or 0.32%, at 5,606.34, and the Nasdaq Composite

was up 102.41 points, or 0.57%, at 18,099.33.

Warner Bros Discovery ( WBD ) jumped 3.7% after a report

that the CNN and HBO owner had discussed a plan to split its

digital streaming and studio businesses from its legacy TV

networks.

Netflix ( NFLX ) rose 0.7% ahead of its results, due

after markets close.

Advancing issues outnumbered decliners by a 1.07-to-1 ratio

on the NYSE, and by a 1.17-to-1 ratio on the Nasdaq.

The S&P index recorded 15 new 52-week highs, while the

Nasdaq recorded 25 new highs and nine new lows.