US stocks traded higher on Thursday, with the Nasdaq Composite leading the way, gaining over 2%. The Dow Jones Industrial Average also saw gains, closing up 1.25% to 40,509.36. The S&P 500 followed suit, rising 1.51% to 5,537.70. This positive market performance was driven by a combination of strong economic data and positive corporate earnings reports.
Consumer discretionary shares, a sector that includes companies like retailers and restaurants, saw significant gains, climbing 2.8% on Thursday. This suggests investor confidence in consumer spending and the overall economic outlook. However, utilities shares experienced a slight decline, dropping 0.3% on the day.
Walmart Delivers Strong Earnings Report
One of the key factors driving the market’s optimism was Walmart’s strong second-quarter earnings report. The retail giant announced adjusted earnings per share of 67 cents, exceeding analyst expectations of 64 cents. This represents a 9.8% year-over-year increase. Walmart also reported sales of $169.34 billion, surpassing the consensus estimate of $168.57 billion. This strong performance led the company to raise its full-year guidance, further bolstering investor sentiment.
Equities Trading Up
Several individual stocks saw significant gains on Thursday, driven by positive news and developments. Cingulate Inc. (CING) shares surged 123% to $4.1299 after the company received a European patent for its lead asset, CTx-1301, for the treatment of Attention Deficit Hyperactivity Disorder (ADHD). AST SpaceMobile, Inc. (ASTS) shares also saw a surge, rising 28% to $26.58. The company announced that its first five commercial satellites are on track for orbital launch in the first half of September. SciSparc Ltd. (SPRC) shares gained 43% to $0.4599 following the company’s announcement that it has received court approval to convene a meeting of shareholders to approve a merger with AutoMax.
Equities Trading Down
On the other hand, some stocks experienced declines due to negative news and earnings reports. Turnstone Biologics Corp. (TSBX) shares dropped 52% to $1.0598 after the company reported worse-than-expected second-quarter earnings results. SIGA Technologies, Inc. (SIGA) shares fell 33% to $8.06 following the release of topline results from a clinical trial of Tecovirimat for Monkeypox virus, which did not meet its primary endpoint. Terran Orbital Corporation (LLAP) shares plummeted 40% to $0.2381 after Lockheed Martin announced plans to acquire the company.
Commodities Trading Higher
In commodity markets, oil prices saw a 1.5% increase to $78.19. Gold also traded higher, gaining 0.5% to $2,492.00. Silver and copper also experienced significant gains, rising 3.9% to $28.395 and 3% to $4.16, respectively.
European Markets Rise
European shares closed higher on Thursday, following the positive momentum in the US markets. The eurozone’s STOXX 600 index rose 1.18%, while Germany’s DAX gained 1.67% and France’s CAC 40 rose 1.25%. The UK’s FTSE 100 also saw gains, rising 0.74%. These gains were driven by positive economic data, including a larger-than-expected growth in the British economy in the second quarter.
Asian Markets Mixed
Asian markets closed mixed on Thursday. Japan’s Nikkei 225 index jumped 0.78%, while Hong Kong’s Hang Seng Index fell 0.03%. China’s Shanghai Composite Index saw gains, rising 0.94%. Japan’s economy expanded by 3.1% on an annualized basis in the second quarter, but industrial production fell 4.2% month-over-month in June. China’s retail sales climbed 2.7% year-over-year in July, exceeding market estimates, while industrial production rose 5.1% year-over-year.
US Economic Data Mixed
US economic data released on Thursday was mixed. Retail sales gained 1% month-over-month in July, exceeding market expectations, but the Philadelphia Fed Manufacturing Index declined to -7 in August, suggesting a contraction in manufacturing activity. Other economic data included a rise in the NY Empire State Manufacturing Index, a decline in initial jobless claims, and a fall in US industrial production.
Overall, Thursday’s trading session saw a positive sentiment in the US markets, driven by strong corporate earnings and a mixed bag of economic data. The Nasdaq Composite’s strong performance was a key highlight of the day, indicating optimism about the technology sector and the broader economic outlook.
