U.S. stocks moved sharply higher Thursday morning after the release of a fresh batch of data that eased concerns about the health of the economy, while retailer Walmart (WMT) and tech giant Cisco (CSCO) soared after reporting strong earnings.
The S&P 500 and Nasdaq Composite were up 1.1% and 1.7%, respectively, while the Dow Jones Industrial Average added 1%. The S&P 500 and Nasdaq are riding five-session winning streaks amid optimism that the Federal Reserve will soon cut interest rates and the economy will avoid slipping into recession.
The technology and consumer discretionary sectors were showing the biggest gains on the S&P 500 following the earnings reports and the encouraging economic data.
A monthly report on retail sales came in better than expected and illustrated the continued strength of the U.S. consumer, while weekly jobless claims came in lower than expected, alleviating concerns about a weakening in the labor market. The data on Thursday, which paint a picture of a resilient economy, follow inflation reports released yesterday that showed an easing of consumer price pressures.
Taken together, the data reinforce the idea that the Fed will be in a position to start cutting interest rates soon, but will be doing so because inflation has moderated, not in response to a dramatic weakening of the economy. Earlier in the month, a weak July jobs report had heightened expectations that the economy could be headed toward a recession and the Fed would be forced to respond aggressively.
Investors will also be keeping close tabs on comments from Fed officials who are scheduled to speak later Thursday for clues on how the latest economic numbers feed into the central bank’s decision on rate cuts. The Fed has said it could start cutting rates as soon as September if data comes in as expected.
Among stocks on the move Thursday, shares of Dow component Walmart were up 7% at an all-time high after the retail giant reported better-than-expected quarterly revenue and boosted its outlook. Fellow Dow component Cisco was up about 9% after releasing a strong earnings report and announcing job cuts.
Big tech stocks, which have been particularly volatile recently, were mostly higher in early trading Thursday, led by a 3% gain for Amazon (AMZN). Microsoft (MSFT), Apple (AAPL), Meta Platforms (META), and Nvidia (NVDA) also gained ground, while Alphabet (GOOGL) was flat.
The yield on 10-year Treasurys, which is sensitive to expectations around interest rate cuts, rose to 3.95%, its highest point in a week.
Gold futures were up slightly at around $2,485 an ounce, while bitcoin was holding steady at around $59,000.
Ulta Beauty Gets Buffett Boost
51 minutes ago
Ulta Beauty (ULTA) shares surged Thursday after a regulatory filing late Wednesday revealed that Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) had taken a stake in the cosmetics retailer during the second quarter.
According to a 13-F filing, the Omaha-based conglomerate purchased 690,106 shares of Ulta Beauty, with the size of the holding valued around $266.3 million as of June 30.
Berkshire’s investment comes as welcome news for shareholders in the specialty chain, whose share price, as of the close of trading Wednesday, had fallen 42% since the stock recorded its record high in March. In May, the company lowered its full-year fiscal 2024 outlook amid moderating demand
The stock was up 10% at $363.15 in recent trading.
According to our technical analysis, which you can read here, investors should watch key chart levels at $373, $406, $440, and $487.
Walmart Soars to Record High on Earnings Beat, Outlook Boost
1 hr 24 min ago
Walmart (WMT) shares jumped Thursday as the retail giant reported better-than-expected second-quarter fiscal 2025 sales and adjusted earnings per share (EPS), leading the company to lift its outlook for the full year.
Walmart posted total revenue up nearly 5% year-over-year to $169.33 billion and adjusted EPS of $0.67, both better than analysts’ estimates
Comparable store sales grew across Walmart’s divisions. Comparable sales at Walmart U.S. rose 4.2% year-over-year, Walmart International jumped 8.3%, while membership-only Sam’s Club added 5.2%.
Walmart lifted its full-year guidance in response to the sales numbers, now projecting revenue to rise 3.75% to 4.75% from 3% to 4% previously. Walmart also raised its profit projections, expecting adjusted EPS between $2.35 to $2.43, versus $2.23 to $2.37 previously.
Walmart shares hit an all-time high Thursday morning and were up 6% in recent trading.
TradingView
Cisco Jumps After Strong Earnings, Job Cuts
2 hr 11 min ago
Shares in Cisco Systems (CSCO) jumped in premarket trading Thursday after the technology and networking company released earnings that topped Wall Street’s estimates and announced that it’s cutting 7% of its global workforce.
The tech giant, which has seen its shares slump by around 10% since the start of the year through Wednesday’s close, also said it plans to invest in key growth opportunities as it looks to diversify its revenue. In recent quarters, net sales in the company’s core networking business have remained under pressure as enterprise customers continue to move their computing operations to the cloud.
Cisco shares were up 7.9% at $49.03 about 30 minutes before the opening bell Thursday.
The share price broke below the neckline of a head and shoulders pattern earlier this month, but lackluster trading volumes indicate a lack of conviction behind the move.
Cisco shares could run into overhead resistance at key chart levels including $48.50, $50, $52.50, and $58.
Read our full technical analysis here.
Futures Tied to Major Indexes Higher Ahead of Economic Data
2 hr 59 min ago
Futures tied to the Dow Jones Industrial Average were up 0.3%.
TradingView
S&P 500 futures were up 0.2%.
TradingView
Nasdaq 100 futures were up 0.3%.
TradingView
