The S&P 500 Index closed at a fresh record high on Thursday as investors became more optimistic as U.S. Treasury yields dipped lower on the day. The broader market index added nearly 0.6%, while the Dow Jones Industrial Average rallied about 350 points and the tech-heavy Nasdaq Composite rose 0.3%.
Here's how the market settled on Thursday:
S&P 500 Index (NYSE: SPY): +0.58% or +29.11 points to 5,029.73
Dow Jones Industrial Average (NYSE: DIA): +0.91% or +348.85 points to 38,773.12
Nasdaq Composite Index (NASDAQ: QQQ): +0.30% or +47.03 points to 15,906.17
In Economic News: U.S. retail sales declined 0.8% in January, the Commerce Department reported on Thursday, reverving December's downwardly revised gain of 0.4%. Excluding auto sales, sales dfell 0.6%, which was also below expectations, while year-over-year sales increased jut 0.6%.
Elsewhere, initial jobless claims totaled 212,000 for the week ended Feb.10, the Labor Department reported Thursday, representing a decline of 8,000 from the previous week's upwardly revised total. Continuing unemployment claims, which lag a week behind, totaled about 1.9 million, up 30,000 from the prior week and coming in above expectations.
On the Earnings Front: Stellantis (NYSE: STLA) reported a 10% year-over-year decline in profits for the second half of 2023, reflecting impacts from the six-week long union strikes against major U.S. automakers. However, the Jeep parent reported better-than-expected full year adjusted earnings and approved a 3 billion euro share buyback program.
"As we just passed the three-year mark since Stellantis' inception, I warmly thank our teams who are executing at the highest levels and contributing greatly to our growth story, even in the strongest of headwinds," said Carlos Tavares in a statement, adding that the company's "record financial results are proof that we have become a new global leader in our industry and will remain rock sold as we look to a turbulent 2024."
Deere (NYSE: DE) shares came under pressure on Thursday after the agricultural machinery maker lowered its full-year net income forecast despite posting better-than-expected fiscal first-quarter results. The company now expects net income of $7.50 billion to $7.75 billion, lower than its previous guidance range of $7.75 billion and $8.25 billion.
"Moving forward, we expect fleet replenishment to moderate as agricultural fundamentals normalize from record levels in 2022 and 2023," said CEO John May in a statement.
Cisco Systems (NASDAQ: CSCO) shares declined on Thursday after the tech company reported strong fiscal second-quarter results but issued weak forward guidance and announced plans to cut 5% of its workforce, impacting about 4,250 jobs. For its third-quarter, Cisco expects adjusted earnings per share of $0.84 to $0.86 on a revenue range of $12.1 billion to $12.3 billion -- both below expectations. Moreover, its full-year outlook also was weaker-than-expected, with the company expecting $3.68 to $3.74 in adjusted earnings per share and $51.5 billion to $52.5 billion in revenue.
"In terms of the macro environment, we are seeing a greater degree of caution and scrutiny of deals given the high level of uncertainty," CEO Chuck Robbins said during the company's earnings call with investors. "As we're hearing this from our customers, it's leading us to be more cautious with our forecast and expectations. Second, as we discussed last quarter and subsequently saw in other technology provider results, customers have been taking time since the start of our fiscal 2024 to deploy the elevated levels of products shipped to them in recent quarters, and this is taking longer than our initial expectations."
For Friday: Market participants will react to more economic data on producer prices, housing starts and building permits for January, as well as a preliminary consumer sentiment reading for February. Companies including Applied Materials (NASDAQ: AMAT), DoorDash (NASDAQ: DASH), DraftKings (NASDAQ: DKNG) and Coinbase Global (NASDAQ: COIN) are also set to report after market close on Thursday.