U.S. stocks closed higher on Thursday, winning back much of the previous day's losses, as economic data fueled optimism that the Federal Reserve would ease monetary policy and revived investor risk appetite.
All three major U.S. stock posted gains as chips surged, led by Micron Technology after its better-than-expected quarterly forecast, putting the tech-heavy Nasdaq out front. Tesla shares rallied almost 3% after falling 3.9%.
Market Snapshot
The Dow Jones Industrial Average rose 322.35 points, or 0.87%, to 37,404.35, the S&P 500 gained 48.4 points, or 1.03%, at 4,746.75 and the Nasdaq Composite added 185.92 points, or 1.26%, at 14,963.87.
Market Movers
Micron Technology (MU) - Micron Technology posted an adjusted fiscal-first-quarter loss of 95 cents a share, narrower than analysts’ estimates, and issued sales guidance for the second quarter of about $5.3 billion at the midpoint, higher than expectations of $4.97 billion. The semiconductor company also said generative artificial intelligence would spark rising demand for memory chips over the next several years. Shares of Micron jumped 8.6%.
BlackBerry (BB) - Canadian cybersecurity company BlackBerry forecast fourth-quarter revenue of $150 million to $159 million, below analysts’ estimates for $185.6 million. The stock fell 12.7%. For the third quarter, BlackBerry reported an adjusted profit of 1 cent a share, while analysts had expected an adjusted loss of 4 cents.
Carnival (CCL) - Carnival was up 6.2% after the cruise operator reported better-than-expected quarterly earnings and said vacation demand remained strong.
CarMax (KMX) - CarMax rose 5.2% after the used-car retailer reported better-than-expected fiscal-third quarter earnings and resumed its share repurchase program.
Spotify Technology (SPOT) - Spotify Technology stock rose 2.2% after Pivotal Research upgraded shares of the streaming-audio company to Buy from Hold, and raised the price target to $265 from $170.
Calliditas Therapeutics (CALT) - Calliditas Therapeutics received full approval from the Food and Drug Administration for Tarpeyo delayed release capsules as a treatment for adults with primary immunoglobulin A nephropathy, a kidney disease. The stock was up 13.4%.
JFrog (FROG) - JFrog jumped 9.7% after Morgan Stanley analysts upgraded shares of the software-development-tools company to Overweight from Equal Weight and raised their price target to $42 from $32.
Paychex (PAYX) - Paychex declined 7% after the payroll services reported fiscal second-quarter sales that missed analysts’ expectations.
Cintas (CTAS) - Cintas gained 6.6% after the provider of uniforms, mats, and mops beat earnings and sales estimates and raised its financial guidance.
Warner Bros. Discovery (WBD), Paramount Global (PARA) - The CEOs of Warner Bros. Discovery and Paramount Global met this week and discussed a possible merger between the media companies, The Wall Street Journal reported, citing people familiar with the matter. No formal talks between the companies are under way, the Journal added. Warner Bros. owns several studio and television properties, including cable channels CNN and HBO, and streaming platform Max. Paramount also owns a studio, the CBS television network, cable operations including Nickelodeon, and streaming platform Paramount+. Warner Bros. shares dropped 1.5%, while Paramount was down 2.8%.
Market News
US GDP Data highlights: Third-quarter real GDP comes in lower than expected
US GDP Data highlights: The third reading of real gross domestic product came in lower than expected. Real gross domestic product rose at an annual rate of 4.9% in the third quarter, according to the third estimate from the Bureau of Economic Analysis. That’s down from the second estimate’s increase of 5.2%, and lower than the rise of 5.1% anticipated by economists polled by Dow Jones. In the second quarter, real GDP rose by 2.1%.
Nike Seeks $2 Billion in Savings as Sales Outlook Weakens
Nike on Thursday unveiled plans to cut costs by about $2 billion over the next three years as it lowered its sales outlook.
The stock fell about 10% after hours. Nike shares were up 4.7% so far this year through Thursday’s close, lagging far behind the S&P 500′s gains for the year. Retailer Foot Locker, which has leaned heavily on Nike products, fell 4% after hours.
