Dow falls for a third day after Microsoft issues weak outlook

U.S. stocks were mixed Thursday after technology bellwether Microsoft issued weak guidance, with the major indexes coming off of two straight losing days.

The Dow Jones Industrial Average shed about 180 points, or 0.6%. The S&P 500 dipped 0.5%. The tech-heavy Nasdaq Composite eased 0.3%.

Shares of Microsoft slid about 2% as the company warned revenue and earnings this quarter would fall short of analysts' estimates.

Other mega-cap technology names followed suit, with Apple and Amazon each down roughly 1%.

Traders also parsed through corporate earnings results. Hewlett Packard Enterprise fell around 8% following slight misses on both earnings and revenue. Meanwhile, shares of pet retailer Chewy surged about 15% after the company reported strong quarterly results.

Investors eyed employment data showing the slowest job creation pace of the pandemic-era recovery. Private sector employment rose by just 128,000 in May, ADP reported Thursday, falling well short of the 299,000 Dow Jones estimate. In another report Thursday, initial jobless claims last week fell and came in below expectations, according to the Labor Department.

The closely-watched jobs report for May is slated for release Friday morning. Economists expect 325,000 nonfarm jobs were added in the latest month, compared with 428,000 in April.

The three major stock averages are each down at least 1% on the holiday-shortened week.

"Our view is cautious as we close out the second quarter," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. "Global central bank uncertainty and the pace of tighter monetary policy, still-tight global energy ... markets — which may lead to higher prices still — and headwinds for corporate earnings growth are risks for investors moving forward."