Stocks closed higher for a fourth consecutive session Thursday as investors took the Federal Reserve's Wednesday policy statement and subsequent words from Fed Chair Jerome Powell as signs the central bank is done hiking interest rates.
The Fed yesterday held rates steady for a second straight meeting. After the policy statement, Powell said in his presser that the committee is "not confident" that it's done enough to bring down inflation, but that it's also "not confident" that it hasn't done enough. Many interpreted this as an indication that there will be no more rate hikes. According to CME Group, futures traders are now pricing in an 80% chance the Fed will keep rates unchanged at its next meeting in December – up from 54% one month ago.
There's still a lot of new economic data for the Fed to consider over the next six weeks, though. Ahead of tomorrow's October jobs report, data from the Labor Department showed initial jobless claims rose 5,000 last week to 217,000 – a seven-week high.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Palantir soars on billion-dollar AI outlook
On the earnings front, Palantir Technologies (PLTR) spiked 20.4% after the data analytics firm's beat-and-raise report. The company cited growth around its Artificial Intelligence Platform (AIP), which saw the number of users nearly triple in the third quarter. CEO Alex Karp expects AIP's revenue run rate to hit $1 billion by 2025.
"Excitement around Palantir's AIP was seemingly validated by optimistic early adoption signs reported by management," says Jordan Berger, analyst at global research firm Third Bridge. "If successful, AIP could ignite Palantir's go-to-market motion in a transformational way, however, our experts caution that due to the complexity of the core technology deployment, the net benefit generated by AIP remains to be seen."
What's more, Palantir reported a fourth straight quarter of profitability in Q3, meaning it is now eligible for inclusion in the S&P 500. Karp said this is "a milestone that we have been working towards and knew was within reach."
Starbucks, Roku rally after earnings
PLTR wasn't the only big earnings mover Thursday. Starbucks (SBUX), for one, surged 9.5% after the coffee chain unveiled higher-than-expected fiscal fourth-quarter earnings and revenue. Strategic pricing and consumers' preference for more premium beverages helped the average ticket grow by 6% year-over-year, while transactions were up 2%.
Additionally, Roku (ROKU) stock climbed 30.7% after the streaming company reported top- and bottom-line beats in its third quarter due in part to a "strong performance in content distribution and video advertising." Roku also said it had more subscribers than anticipated in Q3 and forecast fourth-quarter revenue above what analysts are expecting.
Apple earnings up next
Next up on the earnings calendar is Apple (AAPL, +2.1%), which reports after tonight's close. At last check, AAPL stock was up marginally in after-hours trading as investors wait for the tech giant's fiscal fourth-quarter results.
At the close, the Dow Jones Industrial Average was up 1.7% at 33,839, the S&P 500 was 1.9% higher at 4,317, and the Nasdaq Composite had gained 1.8% to 13,294.
Related content
- When Is the Next CPI Report?
- Kiplinger's Earnings Calendar for This Week (Oct. 30-Nov. 3)
- Home Sellers' Costs Could Soon Be Cheaper Due To This Court Case
-
Donating Complex Assets Doesn't Have to Be ComplicatedIf you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Travel trends you can expect this summerThe Kiplinger Letter Domestic trips will trump foreign travel amid economic uncertainties, though some costs are down.
-
Stock Market Today: Investors Look on the Bright SideA generally good week closes on another positive note, as investors, traders and speculators look for fresh catalysts.
-
My Three-Day Rule for Investing: And If it Applies NowStock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Stock Market Today: Stocks Climb More Walls of WorryVolatility is back in a normal range, and the trend for the main equity indexes remains positive despite specific and general headwinds.
-
Is It Time to Invest in Europe?Stock Market Europe is being shaken out of its lethargy, militarily and otherwise, by Donald Trump's changes in U.S. policy. Should investors start buying?
-
Stock Market Today: Nasdaq Outperforms as Big Tech RalliesThe Dow Jones Industrial Average closed lower for a second day as Amgen and Merck fell.
-
Stock Market Today: UnitedHealth Drags on Dow After CEO SplitsUNH created headwinds for the price-weighted Dow on news that its embattled CEO, Andrew Witty, is stepping down.
-
Stock Market Today: Dow Gains 1,160 Points on U.S.-China Trade DealThe two countries agreed to a 90-day truce that will give them time to work on more substantive trade negotiations.
-
Stock Market Today: Investors Weigh Weekend NegotiationsInvestors, traders and speculators will look to Switzerland for answers about the most compelling issue confronting global markets.
