U.S. stock markets closed on a positive note on Thursday, with the Dow Jones Industrial Average gaining 1%. The Dow climbed 1.02% to 41,508.88, while the NASDAQ rose 0.34% to 17,616.32. The S&P 500 also saw gains, increasing 0.50% to 5,620.08.
Energy sector shares were the standout performers, rising by 1.5% on the day. In contrast, real estate stocks struggled, declining by 0.5%.
One of the major headlines of the day was Dollar General Corporation’s (DG) disappointing second-quarter results. The retail giant reported earnings per share of $1.70, falling short of analysts’ expectations of $1.78. Quarterly sales came in at $10.21 billion, representing a 4.2% year-over-year increase but missing the estimated $10.368 billion. Dollar General also lowered its fiscal year 2024 outlook, reducing its EPS forecast from a range of $6.80 to $7.55 to a new range of $5.50 to $6.20, compared to the $7.12 estimate. The company also adjusted its revenue forecast downwards.
Several stocks experienced significant price fluctuations throughout the day. BioCardia, Inc. (BCDA) shares surged 51% to $3.32 after the FDA cleared the company to market its Morph DNA Steerable Introducer product family. Shares of Innovative Eyewear, Inc. (LUCY) also saw a boost, climbing 85% to $6.13 following the announcement that its Lucyd Lyte frames are now available on Target.com. Affirm Holdings, Inc. (AFRM) shares were up 33% to $41.90, driven by strong fourth-quarter earnings and optimistic first-quarter guidance.
On the other side of the spectrum, iLearningEngines, Inc. (AILE) shares plummeted 56% to $1.3950 after a short report on the stock was released by Hindenburg. Shares of Ensysce Biosciences, Inc. (ENSC) dropped 30% to $0.4406, following the company’s announcement of a $5 million registered direct offering and concurrent private placement. Big Lots, Inc. (BIG) experienced a significant decline, falling 38% to $0.5812 after reports emerged that the company is considering a bankruptcy filing.
In the commodities market, oil prices rose 1.8% to $75.88, while gold gained 0.9% to $2,559.70. Silver also saw an increase, trading up 2.5% to $29.925, and copper edged higher by 0.1% to $4.2225.
European markets mirrored the positive sentiment seen in the U.S., with shares closing higher. The eurozone’s STOXX 600 gained 0.76%, Germany’s DAX rose 0.69%, and France’s CAC 40 increased 0.84%. Spain’s IBEX 35 Index rose 0.23%, while London’s FTSE 100 climbed 0.43%.
The economic data released for the Eurozone showed a mixed picture. Germany’s annual inflation rate eased to 1.9% in August from 2.3% in July, while the consumer confidence indicator in the Eurozone dipped to -13.5 in August. However, the economic sentiment indicator in the Eurozone improved to 96.6 in August.
Asian markets displayed a mixed performance on Thursday. Japan’s Nikkei 225 fell 0.02%, while Hong Kong’s Hang Seng Index gained 0.53%. China’s Shanghai Composite Index closed down 0.50%, and India’s BSE Sensex rose 0.43%. The consumer confidence index in Japan remained unchanged at 36.7 in August.
The U.S. economic data released on Thursday provided some insights into the country’s economic performance. Core PCE prices, a key inflation measure, increased by 2.8% from the prior quarter in the second, slightly lower than market estimates of 2.9%. U.S. initial jobless claims fell by 2,000 from the prior week to 231,000 in the period ending August 24. The U.S. real gross domestic product expanded at an annual rate of 3.0% in the second quarter, a significant improvement from the 1.4% growth recorded in the first quarter. The U.S. trade deficit in goods widened to $102.7 billion in July, compared to a revised $96.6 billion gap in the previous month. U.S. wholesale inventories rose 0.3% month-over-month to $905 billion in July. U.S. natural gas stocks increased by 35 billion cubic feet during the week ending August 23.
