By Joe Woelfel

Stocks were mixed Thursday and the Dow Jones Industrial Average declined as UnitedHealth Group fell after saying it was "complying with formal criminal and civil requests" from the U.S. Department of Justice, and as IBM slumped following its second-quarter earnings.

These stocks were moving Thursday:

UnitedHealth was down 1.8% after the health insurance company said it said it had "full confidence in its practices" and was " committed to working cooperatively" with the DOJ. The Wall Street Journal earlier this year reported the Justice Department was investigating the company's Medicare billing practices, but UnitedHealth never formally confirmed the news.

Union Pacific fell 1.9% and Norfolk Southern rose 1% after the two railroad companies said in a press release they were "engaged in advanced discussions regarding a potential business combination." Earlier Thursday, Union Pacific reported a solid second-quarter earnings that topped analysts' estimates.

Tesla was falling 8% after reporting a 16% decline in net income on a 12% drop in revenue to $22.5 billion. Revenue from Tesla's automotive business fell 16%, while revenue at its energy business declined 7%. Tesla CEO Elon Musk, on a conference call following the earnings report's release, said production had begun on a less expensive EV and that sales could start in the fourth quarter. He also discussed plans for Tesla to "greatly expand" its robo-taxi service, saying the service should cover about "half the U.S. population" by the end of the year.

Second-quarter earnings at Alphabet topped analysts' estimates and shares of the parent of Google were rising 2.6%. Alphabet reported earnings of $2.31 a share on revenue of $96.43 billion versus consensus that called for earnings of $2.19 a share on revenue of $93.99 billion. Cloud revenue in the period jumped to $13.62 billion from $10.35 billion a year earlier. Alphabet said it was raising its capital-expenditure plans for the year, targeting $85 billion, up from a previous call for $75 billion. Chief Executive Sundar Pichai attributed the move to the "strong and growing demand for our cloud products and services."

International Business Machines fell 9.5% after the technology giant reported adjusted earnings in the second quarter of $2.80 a share, topping analysts' expectations of $2.65. Revenue of $17 billion beat expectations of $16.6 billion. IBM said it expects at least 5% revenue growth in constant currency in 2025, and now expects to generate more than $13.5 billion in free cash flow. In April, IBM said it expected to generate about $13.5 billion in free cash flow. Coming into the report, IBM shares had risen 28% this year.

T-Mobile US was up 6.6% after the telecommunications company reported better-than-expected second-quarter earnings and revenue and raised guidance for postpaid net customer additions. For the year, T-Mobile said it now expects postpaid net customer additions of between 6.1 million and 6.4 million, an increase from prior guidance of 5.5 million to 6 million.

Enterprise-software company ServiceNow reported better-than-expected second-quarter adjusted earnings and revenue and raised its full-year subscription revenue guidance as demand for its artificial-intelligence-powered enterprise software remained strong. The stock was rising 5.4%.

Honeywell International fell 5.4% after the industrial conglomerate delivered a solid beat-and-raise second quarter as it prepares to break into three pieces. Honeywell reported adjusted earnings of $2.75 a share on sales of $10.4 billion. Analysts expected earnings of $2.66 on sales of $10.1 billion.

Dow Inc. fell 13% after reporting an adjusted loss in the second quarter of 42 cents a share, wider than analysts' estimates that called for a loss of 17 cents. The company also slashed its dividend to 35 cents a share from 70 cents.

Southwest Airlines was down 9.7% after the carrier posted adjusted earnings in the second quarter of 43 cents a share, below analysts' forecasts of 51 cents, on revenue of $7.24 billion that also came up short. But Southwest said recent industry demand "shows signs of improvement off of depressed second quarter 2025 levels, which combined with moderated capacity across the industry and Southwest-specific initiatives, creates a constructive backdrop for the second half of the year."

American Airlines reported adjusted second-quarter earnings of 95 cents a share, beating estimates of 78 cents. However, the airline said it now expects full-year earnings of between a loss of 20 cents a share and a profit of 80 cents. Wall Street expected 72 cents. American said the "top end of the range is achievable if demand in the domestic market continues to strengthen and only expects to be at the bottom end of the range if there were to be macro weaknesses that are not seen today." Shares fell 9.2%.

Chipotle Mexican Grill, the burrito chain, was falling 12% after posting second-quarter profit and revenue that both met analysts' expectations but same-store sales for existing restaurants that declined 4% from a year earlier. For 2025, Chipotle expects comparable sales flat with 2o24.

Las Vegas Sands earned an adjusted 79 cents a share in the second quarter, beating analysts' estimates of 53 cents. Revenue of $3.18 billion topped consensus of $2.84 billion. The casino company was up 2.6%.

American Eagle Outfitters rose 9.8% after the retailer announced that Hollywood actress Sydney Sweeney would headline its Fall 2025 promotional campaign.

Earnings reports are expected after the closing bell Thursday from Intel, Newmont, and VeriSign.

Write to Joe Woelfel at joseph.woelfel@barrons.com

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July 24, 2025 09:53 ET (13:53 GMT)

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