Darden Eating places Inventory Sizzles After Gross sales Beat

Main U.S. equities indexes completed Thursday little modified after a pointy sell-off a day earlier.

Though traders continued to digest indications that the Federal Reserve plans a extra muted path for interest-rate cuts in 2025, a optimistic replace to estimated gross home product development within the third quarter demonstrated the resilience of the U.S. economic system.

After buying and selling larger for a lot of the session, the S&P 500 and the Nasdaq Composite noticed their rebound makes an attempt lose steam within the afternoon, with each indexes ending down 0.1%. The Dow managed a acquire of lower than 0.1%, ending a streak of 10 straight down days.

Shares of Lamb Weston (LW) plunged 20%, greater than every other S&P 500 inventory on Thursday, after the supplier of frozen fries and different potato merchandise reported an unanticipated loss for its fiscal second quarter. The Idaho-based firm additionally lowered its full-year outlook and introduced the appointment of a brand new CEO,

Micron Expertise (MU) supplied lower-than-expected gross sales steerage for the present quarter, and its shares tumbled 16%. The chipmaker cited smooth demand in consumer-oriented markets, pointing to the auto and industrial sector in addition to an underwhelming PC alternative cycle. Financial institution of America analysts downgraded Micron inventory to “impartial” from “purchase” and lowered their value goal, noting the corporate faces pricing stress within the reminiscence chip market.

Vertex Prescribed drugs (VRTX) shares fell 11% following combined outcomes from a Section 2 scientific trial of a therapy for lumbosacral radiculopathy, a situation inflicting leg and again ache. The biotechnology firm mentioned that, though the drug met its main endpoint of lowering ache, the placebo used within the examine confirmed related outcomes.

Darden Eating places (DRI) inventory skyrocketed on Thursday, main the S&P 500 larger with a surge of practically 15%. The dad or mum firm of Olive Backyard and different restaurant chains posted better-than-expected gross sales and adjusted income for its fiscal second quarter, boosted by robust same-restaurant gross sales development from its LongHorn Steakhouse enterprise. Darden additionally lifted its full-year income outlook.

A beat-and-raise quarter additionally helped carry shares of Accenture (ACN), which jumped 7.1% after the skilled companies and consulting agency topped income and internet revenue forecasts and elevated its full-year gross sales outlook. Yr-over-year development in synthetic intelligence bookings contributed to Accenture’s profitable quarter.

Shares of power gear maker GE Vernova (GEV) superior 4.9%. A number of market observers highlighted the robust efficiency of GE Vernova inventory since its spin-off from Basic Electrical earlier this yr, noting its potential to learn from growing demand for clear power, particularly from AI information facilities. Final week, GE Vernova declared a dividend, introduced a inventory buyback plan, and raised its full-year gross sales forecast.