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
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
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
-
Fed's Rate Cuts Could Have Impacts You Might Not AnticipateUnderstanding how lower interest rates could impact your wallet can help you determine the right financial moves to make.
-
Past Performance Is Not Indicative of Your Adviser's ExpertiseMany people find a financial adviser by searching online or asking for referrals from friends or family. This can actually end up costing you big-time.
-
I'm want to give my 3 grandkids $5K each for Christmas.You're comfortably retired and want to give your grandkids a big Christmas check, but their parents are worried they might spend it all. We ask the pros for help.
-
Past Performance Is Not Indicative of Your Financial Adviser's Expertise
Many people find a financial adviser by searching online or asking for referrals from friends or family. This can actually end up costing you big-time.
-
I'm a Financial Planner: If You're Not Doing Roth Conversions, You Need to Read ThisRoth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs.
-
Could Traditional Retirement Expectations Be Killing Us? A Retirement Psychologist Makes the CaseA retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg.
-
I'm a Financial Adviser: This Is How You Can Adapt to Social Security UncertaintyRather than letting the unknowns make you anxious, focus on building a flexible income strategy that can adapt to possible future Social Security changes.
-
I'm a Financial Planner for Millionaires: Here's How to Give Your Kids Cash Gifts Without Triggering IRS PaperworkMost people can gift large sums without paying tax or filing a return, especially by structuring gifts across two tax years or splitting gifts with a spouse.
-
'Boomer Candy' Investments Might Seem Sweet, But They Can Have a Sour AftertasteProducts such as index annuities, structured notes and buffered ETFs might seem appealing, but sometimes they can rob you of flexibility and trap your capital.
-
AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market TodayThe major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.
-
Got $100 to Gamble? These Penny Stocks Could Be Worth the RideVolatile penny stocks are high-risk plays with potentially high rewards. If you have $100 you can afford to lose, these three names are worth a look.
