Joey Solitro
Stocks jumped out of the gate and stayed there through the close. Today's upside came courtesy of bargain hunters and an encouraging update on the labor market. A round of well-received earnings reports also boosted sentiment.
Market volatility has ramped up over the past week as disappointing economic data reignited recession chatter – and sparked concerns the Federal Reserve waited too long to cut interest rates. Indeed, losses for the main indexes ranged from 5% to 8% between the July 31 and August 7 closes.
Today, though, the Dow Jones Industrial Average gained 1.8% to 39,446, the S&P 500 rose 2.3% to 5,319, and the Nasdaq Composite added 2.9% to 16,660.
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.
In economic news, data from the Department of Labor showed initial jobless claims fell by 17,000 last week to 233,000, more than economists were expecting.
The July jobs report signaled a notable slowdown in hiring last month, so today's report "helps to calm fears about the health of the labor market," says Skyler Weinand, chief investment officer at Regan Capital. "Just because the labor market is cooling off doesn't mean we're entering into a recession."
Palantir builds on weekly gain
In single-stock news, Palantir Technologies (PLTR) had another strong session, surging 11.3% on news the data analytics firm teamed up with Microsoft (MSFT, +1.1%). The partnership will have the two tech companies selling secure cloud, analytics and artificial intelligence (AI) capabilities to the U.S. government.
In its most recent earnings report, Palantir said its government contracts accounted for more than 40% of its total revenue. The print, which was released Monday evening, sent PLTR up 10% in Tuesday's session. And with today's gain, the tech stock is up more than 18% for the week to date.
Weight-loss drugs fuel Q2 beat for Eli Lilly
As for today's earnings news, Eli Lilly (LLY) stock surged 9.5% after the pharmaceutical giant beat top- and bottom-line expectations for its second quarter, driven by demand for its weight-loss drugs. LLY also raised its full-year forecast.
Jefferies analyst Akash Tewari (Buy) says the company's GLP-1 drugs make LLY a "must-own" stock, and that its next-generation combination treatments "could lead to the greatest period of revenue and earnings-per-share growth in pharma history."
Robinhood, Klaviyo gain after earnings
Elsewhere, Robinhood Markets (HOOD) stock gained 3.6% after the online brokerage platform reported record quarterly earnings and revenue results for Q2. But that wasn't all.
"There was a lot to like about HOOD's Q2 including a record $13 billion net deposits," says Mizuho Securities analyst Dan Dolev (Outperform, the equivalent of Buy). "Despite already strong momentum, HOOD is still in its early stages of disrupting the brokerage industry and has plenty of runway from here."
Meanwhile, Klaviyo (KVYO) stock soared 33.4% after the software-as-a-service marketing platform disclosed higher-than-expected top- and bottom-line results for its second quarter and raised its full-year forecast.
Klaviyo's "huge beat … reflects strong execution and growth opportunity," says Mizuho Securities analyst Siti Panigrahi (Outperform). "In the current macro environment, we believe KVYO estimates are derisked for 2024 and 2025 and current levels offer an attractive entry point for KVYO shares."
Related content
- The Fed Is About to Cut Rates. What Should Investors Do?
- The 1031 Exchange Rules You Need to Know
- Kiplinger's Economic Calendar for This Week
-
10 Cities Where Grocery Prices Are HighestThese 10 cities are paying up to 33% more than the rest of the country to keep food on the table.
-
Amid Mounting Uncertainty: Five Forecasts About AIThe Kiplinger Letter With the risk of overspending on AI data centers hotly debated, here are some forecasts about AI that we can make with some confidence.
-
Here's How to Plan This Year's Roth Conversion, From a Wealth ManagerWhile time is running out to make Roth conversions before the end of the taxable year, consider taking your time and developing a long-term strategy.
-
Four Times You Need a Second Opinion on Your Financial PlanIs your financial plan fit for purpose — or is your adviser peddling an outdated strategy? When you see these red flags, it's time for a second opinion.Evan
-
'But It's Not My Fault!': Your Insurance Company Absolutely Will Blame You in These Five ScenariosInsurance companies care about 'fault' in more ways than you think — from payment mishaps to your neighbor's landscaping — so it's on you to manage the risks.
-
Dow Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
-
5 Core Stocks Every Investor Should Own In 2026 and BeyondCore stocks are solid, long-term investments that provide stable returns and steady growth within your portfolio. Here are five we like.
-
How to Calm Your Retirement Nerves When It's Time to Shift from Savings Mode to Spending ModeTransitioning from saving to spending in retirement can be tricky, but devising a strategic plan can help ensure a smooth and worry-free retirement.
-
Why Wills and Trusts Aren't Enough in the Great Wealth Transfer, From an Attorney Who KnowsFamilies need to prepare heirs through communication and financial know-how, or all that money could end up causing confusion, conflict and costly mistakes.
-
Private Markets for Main Street: What Financial Advisers' Clients Need to KnowWith product innovation 'democratizing' private market access for everyday investors, advisers must step up their game to educate clients on the pros and cons.
