S&P 500 Gains and Losses Today: Pharma Stocks Fall After Pfizer, Merck Reports

The S&P 500 lost 0.3% on the first trading day of August as weaker-than-expected results from big pharmaceutical companies like Pfizer weighed on the index.

Arista Networks (ANET) shares soared 19.7% after the company reported better-than-expected earnings, boosted by AI-driven demand for its cloud networking products. Revenue of $1.46 billion beat consensus estimates of $1.38 billion, up 39% from the year-ago quarter.

Caterpillar's (CAT) stock price hit an all-time high, closing 8.9% higher on strong earnings results, and a bullish margin forecast by management. The company said strong demand for heavy machinery from the construction and mining industries would drive its full-year operating margin toward the top end of its earlier forecasts.

Advanced Micro Devices (AMD) shares rose 2.8% with the company set to release its second-quarter earnings after the bell. Despite slower demand for personal computing seen at companies like Microsoft, analysts are optimistic that higher demand could be on the way for its graphic processing unit (GPU) chips, needed by AI product developers.

Broadcom (AVG0) shares rose 2.4% after the company announced a new wireless deal with Synaptics Inc. The deal extends a previous agreement to 2026 while adding Broadcom's Wi-Fi 7, Bluetooth 6.0, and TWS products to the Synaptics IoT portfolio.

Cisco Systems (CSCO) added 1.2% as the company continued to benefit from its strong earnings report. Despite concerns about declining orders, the networking firm reported revenue of $11.5 billion, down from $12.2 billion in the same period last year, but above analysts' forecast of $11.36 billion.

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Shares of Norwegian Cruise Line (NCLH) tumbled over 12% after its outlook for the third quarter, typically the best for the industry, missed analyst estimates as costs climbed.

Molson Coors (TAP) shares lost 4.7% after its sales came short of expectations amid a softer beer market.

Pfizer (PFE) shares fell 1.3% after reporting weaker-than-expected revenue for the second quarter, due to a slump in demand for its COVID products.

Tesla's (TSLA) stock price lost 2.4% after reports of a government safety probe into two of its best-selling electric vehicles. The National Highway Traffic Safety Administration will study steering problems in the Model 3 sedan, and the Model Y SUV, covering as many as 280,000 individual vehicles.

Merck (MRK) shares lost 1.3% after the company released its second quarter earnings. While revenue beat expectations due to strong sales of its cancer drug Keytruda and HPV vaccine Gardasil, the acquisition of biotech company Prometheus Biosciences drove the company to a loss.

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