Key takeaways
- The S&P 500 gained less than 0.1% on Thursday, February 8, 2024, following strong earnings from Disney and renewed AI-driven optimism in the semiconductor industry.
- Ralph Lauren shares soared after the designer clothing firm reported strong quarterly results, boosted by a strong holiday season and high-profile advertising.
- Facing a transition period, PayPal issued lackluster guidance and its stock plummeted.
Major US stock indexes posted minor gains on Thursday, buoyed by several strong earnings reports. The S&P 500 rose less than 0.1%, closing just below the 5,000-point milestone. The Dow Jones rose 0.1% and the Nasdaq added 0.2%.
Shares of Ralph Lauren (RL) had the biggest gains in the S&P 500, soaring 16.8% after the designer clothing company reported sales and net income well above forecasts for its fiscal third quarter. In addition to a strong holiday season, an increase in direct-to-consumer sales and improvements in China markets, the company received a boost from Taylor Swift when she wore a Ralph Lauren look on the cover of “Time Magazine” for its issue 2023. Person of the Year Feature.
Monolithic Power Systems (MPWR) shares rose 14.2% following a better-than-expected earnings report. Increased demand for chips used in artificial intelligence systems helped the power management device provider beat revenue and results forecasts for the fourth quarter, and the company issued strong full-year guidance.
The strong financial results also helped boost shares of Walt Disney Co. (DIS), which rose 11.5% on Thursday. While revenue was slightly below estimates, the entertainment giant beat estimates with its earnings per share (EPS) for the fiscal first quarter. The company also announced a $1.5 billion investment in Epic Games, maker of Fortnite, and said the companies would develop a “universe” of games featuring Disney characters.
Meanwhile, PayPal (PYPL) shares fell 11.2%, marking the biggest losses among S&P 500 stocks. The payments provider issued weaker-than-expected guidance for the current quarter and full year. The disappointing outlook for 2024 comes as the company undertakes a transformation to drive future growth.
Snap-On Inc. (SNA), which provides diagnostic tools and equipment for repair professionals in transportation and other industries, reported mixed results for the fourth quarter of 2023. Although earnings beat estimates, sales were below expectations. expected and the company faces challenges. to navigate a changing economic environment. Its shares sank 9.7%.
FleetCor Technologies (FLT) shares fell 9.2% after the enterprise payments company reported lackluster fourth-quarter results and missed revenue and profit estimates. Among the company’s newly realigned business segments, corporate payments revenue grew year over year, but vehicle payments revenue declined.
