U.S. stocks finished mostly lower on Thursday as investors took a more cautious stance following another round of earnings. The Dow Jones Industrial Average led the declines, falling nearly 1%, while the S&P 500 slipped modestly and the Nasdaq Composite held up relatively well despite weakness in several technology names. The market continues to reward companies that comfortably exceed expectations while punishing those that fall short of lofty forecasts, even when quarterly results are fundamentally strong.U.S. stock indicesDow Jones Industrial Average:53,890.40 (-464.05, -0.85%). At session highs, the index reached up 154 points. S&P 500:7,710.01 (-13.55, -0.18%). At session highs, the index reached up 19.29 pointsNasdaq Composite:26,348.35 (-15.09, -0.06%). AAt session highs, the index reached up 136 pointsRussell 2000:3,001.57 (-17.62, -0.58%). At session highs, the index reached up 13.01 pointsNasdaq 100:29,373.33 (-114.46, -0.39%). At session highs, the index reached up 81.96 points. Dow's biggest losersThe Dow's underperformance was driven by weakness in several heavyweight components:Boeing (BA): -3.34%Salesforce (CRM): -3.20%Honeywell (HON): -2.95%Goldman Sachs (GS): -2.62%UnitedHealth (UNH): -2.14%Those five stocks accounted for much of the Dow's decline as investors rotated away from industrial, financial, and healthcare names.SanDisk disappoints despite strong earningsOne of the day's biggest stories came from SanDisk, where the stock sold off sharply after earnings. While the company reported another strong quarter, management's forward guidance failed to satisfy investors who have become accustomed to increasingly optimistic outlooks from AI-related companies.From a technical perspective, the stock suffered significant damage.The earnings reaction gapped the price below both the 100-hour and 200-hour moving averages, which are now clustered near $1,360. That area becomes an important technical ceiling. As long as the stock remains below those converging moving averages, sellers retain the short-term technical advantage. A move back above that zone would be needed to improve the bullish outlook.On the downside, sellers were able to push the stock below the 50% retracement of the rally from the 2025 low, and buyers were unable to generate a meaningful rebound. That failure shifts the technical focus toward the 61.8% retracement near $935, which represents the next major downside target if selling pressure continues.Looking aheadThe broader market remains near record territory, but today's session was another reminder that expectations matter just as much as earnings. Investors continue to demand not only strong results, but stronger guidance and continued momentum. As earnings season progresses, traders will be watching whether buyers can defend key technical levels in the broader indices while remaining selective in individual stock opportunities. This article was written by Greg Michalowski at investinglive.com.