Nasdaq, PayPal Rally: This Is Why The Dow Is Seeing Red

X The stock market set fresh record highs early with the Nasdaq leading the way. The tech-heavy index moved up 0.2%, while the S&P 500 and Dow Jones industrial average lagged behind with losses of 0.1% to 0.2% each, beset by weakness in financial and energy names.

 Among the Dow industrials, Cisco Systems (CSCO) was the only component up more than 1% with a nearly 1.4% rise, while Boeing (BA) followed up with a 0.8% gain. Cisco shares reclaimed their 50-day line as the stock works on a flat base with a 34.63 entry.

On the downside, Caterpillar (CAT) experienced a 1.9% decline, while financial components JPMorgan Chase (JPM) and Goldman Sachs (GS) fell 1.4% and 1%, respectively. Energy name Chevron (CVX) dropped 1% in conjunction with weakness in oil prices, which fell 2.5%.

PayPal (PYPL) surged to new highs after handily surpassing Q1 earnings and sales estimates late Wednesday, while announcing a new $5 billion share buyback. Shares moved up 7.3% and are extended from a 43.38 cup-with-handle entry. Another big earnings winner was Grubhub (GRUB), which soared 19% after posting Q1 earnings and sales beats, while raising its Q2 guidance.

Energy and financials were among the weakest performers in the stock market today.

On the S&P 500, oil and gas driller Helmerich & Payne (HP) fell 8.3%, while brokerage house Charles Schwab (SCHW) dropped almost 2%. Schwab remains stuck under its 50-day line after meeting resistance there on Wednesday. On the upside, Under Armour (UAA) surged 9% higher after reporting better-than-expected Q1 results. Shares remain about 55% off their 52-week high.

Earnings releases continued to pressure leading growth stocks on Thursday. Nutrisystem (NTRI) and Radian Group (RDN) plunged 5.6% and 10.2%, respectively. The weight-loss plan provider beat Q1 earnings expectations, but provided mixed Q2 guidance, while the mortgage insurer missed both top- and bottom-line targets.

Other decliners include financial names Essent Group (ESNT) and Seacoast Banking (SBCF). Essent continues its volatile trade with a 3.8% decline, while the Florida bank dropped 2.8% and is just below a 24.48 cup-with-handle buy point.

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