The S&P 500 and Dow Jones Industrial Average added another win to their respective piles Thursday. Tech stocks rallied the most thanks to a round of well-received earnings, which helped the Nasdaq Composite outperform.
At the close, the S&P 500 was up 0.6% at 5,604 and the Dow was 0.2% higher at 40,752 – their eighth straight day of gains.
The tech-heavy Nasdaq, meanwhile, rose 1.5% to 17,710 thanks to impressive post-earnings pops for mega cap stocks Microsoft (MSFT) and Meta Platforms (META).
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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.
MSFT surged 7.6% – easily making it the best Dow Jones stock today – after the software giant reported higher-than-expected earnings and revenue for its fiscal third quarter.
The company's Intelligent Cloud unit saw the largest growth, with revenue up 21% year over year, thanks to a 33% jump in Azure and other cloud services sales.
"The big surprise was in Azure, an unexpected reversal after three straight disappointing quarters," says UBS Global Research analyst Karl Keirstead (Buy). "While the AI lift to Azure was strong, Microsoft pinned the upside on the core or non-AI performance," which grew despite macro headwinds.
The company also issued strong fiscal Q4 guidance – a rarity these days – saying in its earnings call that "demand signals across our commercial businesses as well as in LinkedIn, Gaming, and Search have remained consistent."
Meta jumps on Q1 beat
Meta stock, meanwhile, rose 4.2% after the Facebook parent's first-quarter beat. The company forecast second-quarter revenue of $42.5 billion to $45.5 billion, in line with what analysts expect.
The social media firm also raised its full-year capital expenditures outlook to a range of $64 billion to $72 billion, citing "additional data center investments to support our artificial intelligence efforts."
It also noted increasing costs of infrastructure hardware, which Chief Financial Officer Susan Li said is due to "suppliers who source from countries around the world."
Li added that there's "a lot of uncertainty around this, given the ongoing trade discussions," but Meta is working "on our end on mitigations by optimizing our supply chain."
CFRA Research analyst Angelo Zino (Buy) says that even with these plans for higher spending, Meta "is telling a great growth story tied to AI."
Zino adds that the company has highlighted several ways to monetize AI, including improved advertising and the creation of engaging experiences, and he applauds "execution on margins."
Kohl's booms after its CEO is ousted
In non-earnings news, Kohl's (KSS) added 7.8% after the department store chain said its CEO was fired for cause.
An investigation into Ashley Buchanan, who held the role for just over three months, found that he "violated company policies by directing the company to engage in vendor transactions that involved undisclosed conflicts of interest," Kohl's said in a press release.
A filing with the Securities and Exchange Commission (SEC) revealed the vendor was someone "with whom Mr. Buchanan has a personal relationship ... and that he also caused the company to enter into a multi-million dollar consulting agreement wherein the same individual was a part of the consulting team."
Kohl's has tapped its board chair, Michael Bender, to serve as interim CEO until a permanent replacement is found.
It's been tough sledding for the retail stock, with shares down more than 50% for the year to date heading into Thursday's session. And Wall Street isn't expecting a quick turnaround.
Of the 16 analysts covering KSS stock who are tracked by S&P Global Market Intelligence, one says it's a Strong Buy, seven have it at Hold and eight believe it's a Sell or Strong Sell.
This works out to a consensus Hold recommendation.
Initial claims up ahead of April jobs report
Over on the economic calendar, the Labor Department said that initial jobless claims rose by 241,000 in the week ending April 26, more than economists expected.
Today marked the third straight day of softer-than-anticipated labor market data, says José Torres, senior economist at Interactive Brokers. And this has many wondering if tomorrow's April jobs report will also come up short.
Regardless, Torres notes that recent weakness is "likely a result of the elevated uncertainty from the Trump presidency's first 100 days and can reverse strongly against the backdrop of policy achievements from the Oval Office coinciding with a looser Federal Reserve."
Related content
- May Fed Meeting: Live Updates and Commentary
- AI vs the Stock Market: How Did Value Stocks, Gold and PayPal Perform in April?
- Vanguard Is 50! Here's How It Has Made Investing Better
-
Social Security Wage Base Rises Again for 2026: Who Pays More Tax?Payroll Taxes The Social Security Administration has announced significant changes affecting millions as we approach a new year.
-
Quiz: How Well Do You Understand the Social Security Earnings Test?Quiz Test your basic knowledge of the Social Security earnings test in our quick quiz.
-
Targa Resources, Take-Two Interactive, Boston Scientific: Why Experts Rate These Stocks at Strong BuyWall Street is highly bullish on these three high-quality stocks.
-
Debunking Three Myths About Defined Outcome ETFs (aka Buffered ETFs)Defined outcome ETFs offer a middle ground between traditional equity and fixed-income investments, helping provide downside protection and upside participation.
-
This Is Why Judge Judy Says Details Are Important in Contracts: This Contract Had HolesA couple's disastrous experience with reclaimed wood flooring led to safety hazards and a lesson in the critical importance of detailed contracts.
-
US-China Trade Hopes Send Stocks to New Highs: Stock Market TodayApple and Microsoft are on track to join Nvidia in the $4 trillion market cap club.
-
A Lesson From the School of Rock (and a Financial Adviser) as the Markets Go Around and AroundIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I'm a Financial Pro: This Is How You Can Guide Your Heirs Through the Great Wealth TransferFocus on creating a clear estate plan, communicating your wishes early to avoid family conflict, leaving an ethical will with your values and wisdom and preparing them practically and emotionally.
-
To Reap the Full Benefits of Tax-Loss Harvesting, Consider This Investment Strategist's StepsTax-loss harvesting can offer more advantages for investors than tax relief. Over the long term, it can potentially help you maintain a robust portfolio and build wealth.
-
Social Security Wisdom From a Financial Adviser Receiving Benefits HimselfYou don't know what you don't know, and with Social Security, that can be a costly problem for retirees — one that can last a lifetime.
