US stocks rise on strong Meta, Microsoft results. Dow, S&P 500 winnings streak hits 8 days
U.S. stocks closed higher, propelled by strong earnings from Facebook parent Meta and software giant Microsoft.
The blue-chip Dow closed up 0.21%, or 83.60 points, to 40,752.96; the broad S&P 500 added 0.63%, or 35.08 points, to 5,604.14; and the tech-heavy Nasdaq gained 1.52%, or 264.40 points, to 17,710.74. The Nasdaq is back to levels seen before April 2, when Trump first unveiled his aggressive tariff plans, and the Dow and S&P 500 have now extended their winning streak to eight days. That's the longest winning streak for the Dow in a year and the longest for the S&P 500 since August.
The benchmark 10-year Treasury yield rose to 4.218%.
Meta reported revenues topped expectations in the first three months of the year, while Microsoft beat with both profits and sales during its fiscal third quarter. Microsoft also gave upbeat guidance. Meta shares were last up 4.92% and Microsoft gained 8.55%.
"AI demand is trending higher than expected" for Microsoft said Brent Thill, software analyst at Jefferies. For Meta, he also "continues to see strong AI traction."
Investors largely shrugged off a rise in weekly initial jobless claims to a more than two-month high to wait for the main event on Friday morning when the monthly jobs report is due. Economists on average predict the U.S. economy added 135,000 jobs in April, down from 228,000 in March, according to FactSet. The unemployment rate is forecast to remain unchanged at 4.2%
Amazon and Apple
The market's next test is after the close with Amazon and Apple reporting quarterly results.
Amazon's results in the first three months of the year topped Street estimates, but its current quarter outlook was just shy of forecasts. It pointed to tariffs and trade policies that could cause consumers to cut spending. Amazon shares were last down 4% in after-hours trade.
iPhone maker Apple's fiscal second-quarter results beat Wall Street forecasts, but the company's services division came in light. During the conference call, analysts will scrutinize the company's tariff-related comments because of its reliance on China in its supply chain. Shares were last down 2.21% in after-hours activity.
Corporate news
Other companies that reported after the close include:
- Reddit shares rallied 18% after the close. The message board company reported earnings and revenues in the first three months of the year that topped analysts' estimates and offered surprisingly strong sales guidance for the current quarter.
- Airbnb's first-quarter results met forecasts but the vacation home rental platform sees the next quarter's sales below Street views. It noted “softness” in travel from Canada to the U.S. toward the end of the quarter. Shares fell 3.73% in after-hours trade.
- Duolingo raised its full-year sales and profit outlook above Street forecasts as artificial intelligence offerings are driving users to its higher-priced subscriptions. Shares jumped more than 13% after the bell.
- Instacart lifted its full-year outlook after the grocery delivery company posted its strongest order growth since 2022 and topped earnings expectations in the first three months of the year. Shares soared about 12% after the close.
- Digital payments company Block posted first-quarter results below analysts’ estimates and lowered its full-year profit guidance due to a more challenging macroeconomic environment. Shares plunged more than 16% in after-hours activity.
Earlier in the day:
- Qualcomm's fiscal second quarter results topped analysts' forecasts, but its revenue outlook for the current quarter just fell short of expectations. The mobile chip designer’s shares closed down 9%.
- Tesla denied reports its board has opened a search for a new chief executive to replace Elon Musk. The EV maker’s stock inched lower.
- Eli Lilly shares tumbled more than 11.5% during the day after the drugmaker beat analysts’ forecasts in the first three months of the year on strong weight-loss drug sales. However, it lowered its full-year profit outlook due to a recent deal for a cancer treatment and CVS Health's decided to drop Lilly's obesity drug Zepbound from some lists of medicines it covers for reimbursement. The company's chief executive also urged Trump to ease tariffs and renew the 2017 tax cuts.
- McDonald’s topped earnings estimates in the first three months of the year but its sales fell short. The fast-food chain also posted the largest same-store sales decline since 2020 amid bad weather and cautious consumers. Its shares dipped 1.88% on Thursday.
- GM cut its 2025 earnings guidance to include a possible $4 billion to $5 billion impact from auto tariffs. Shares of the automaker were fractionally lower on Thursday.
- CVS’ results beat analysts’ prediction in the first three months of the year and raised its adjusted 2025 earnings outlook. Its stock rose 4.11% in the regular session.
- Motorcycle maker Harley-Davidson withdrew its outlook even after its quarterly results in the first three months of the year beat Street forecasts. It cited an uncertain business environment, as tariffs and broader concerns about the economy weighed on sales. Shares added 2.81%.
- Church & Dwight, owner of Arm & Hammer, cut its full-year outlook as cautious consumers switch to cheaper alternatives. Shares slumped 6.87%.
- Wayfair’s first-quarter results beat Street estimates. The home furnishings seller’s shares rose 3.56%.
- Estee Lauder warned tariffs are hurting consumer confidence in China, which could weigh on future results. Shares of the cosmetics maker fell 1.7%.
Cryptocurrency
In a sign of widening acceptance of cryptocurrency, Morgan Stanley plans to add cryptocurrency trading to its E*Trade platform, according to Bloomberg. The move would help everyday customers invest in digital assets
Bitcoin was last up 2.37% at $96,403.27.
This story was updated with new information.
Medora Lee is a money, markets, and personal finance reporter at Paste BN. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.