by Chuck Mikolajczak

NEW YORK (Reuters) – The Nasdaq and Nasdaq declined on Thursday as Tesla (NASDAQ: ) and Netflix (NASDAQ: ) posted losses following quarterly results, but the Dow was higher for a ninth day in a row due to gains in Johnson & Johnson (NYSE: ) following a strong annual forecast.

Tesla shares fell 9.20% and were on track for their biggest daily percentage decline since April 20, after the electric-vehicle maker reported a drop in its second-quarter gross margin to a four-year low and CEO Elon Musk hinted at more price cuts.

Meanwhile, Netflix fell 8.24% after the streaming video company’s quarterly revenue came in below estimates, and was on pace for its biggest daily percentage decline since December 2022.

“Last night’s news on Tesla and Netflix, while it’s not the end of the world, gives people reason to wake up and go, maybe I shouldn’t be chasing these names,” said Ken Polcari, managing partner at Kass Capital Advisors in Boca Raton, Florida.

“Let me take some money off the table and spend it again in big boring names.”

But the Dow soared as Johnson & Johnson rose 5.62% after reporting results and announcing an annual profit forecast raise.

The S&P 500 rose 205.01 points, or 0.58%, to 35,266.22, the S&P 500 fell 25.9 points, or 0.57%, to 4,539.82 and declined 264.37 points, or 1.84%, to 14,093.64.

The Dow was set to post a ninth consecutive session of gains, its longest winning streak since September 2017.

The Nasdaq has gained nearly 35% this year, supported by a sharp rally in megacap growth names like Nvidia (NASDAQ: ) and Meta on optimism over artificial intelligence, a U.S. economy that proved more resilient than many anticipated and the Federal Reserve approaching the end of its aggressive rate-hike cycle.

Economic data on Thursday indicated the labor market remained tight, while contraction in the housing and manufacturing sectors continued.

United Airlines gained 3.19% after raising its full-year profit outlook and reporting its highest-ever quarterly earnings on the back of rising demand for international travel.

Refinitiv data shows that with 77 S&P 500 companies reporting results, second-quarter earnings are expected to decline by 7.9%, up from a 5.7% decline expected at the start of the month.

Issues declining outnumbered issues advancing on the NYSE by a 1.61-to-1 ratio; On the Nasdaq, a 1.94-to-1 ratio favored declines.

The S&P 500 posted 31 new 52-week highs and two new lows; The Nasdaq Composite recorded 58 new highs and 60 new highs.