Darden Restaurants Stock Sizzles After Sales Beat

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

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

After buying and selling greater for many 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 Technology (MU) offered lower-than-expected gross sales steering for the present quarter, and its shares tumbled 16%. The chipmaker cited comfortable demand in consumer-oriented markets, pointing to the auto and industrial sector in addition to an underwhelming PC substitute cycle. Bank of America analysts downgraded Micron inventory to “impartial” from “purchase” and lowered their worth goal, noting the corporate faces pricing stress within the reminiscence chip market.

Vertex Pharmaceuticals (VRTX) shares fell 11% following blended outcomes from a Phase 2 medical trial of a remedy for lumbosacral radiculopathy, a situation inflicting leg and again ache. The biotechnology firm mentioned that, though the drug met its major endpoint of lowering ache, the placebo used within the research confirmed related outcomes.

Darden Restaurants (DRI) inventory skyrocketed on Thursday, main the S&P 500 greater with a surge of practically 15%. The mother or father firm of Olive Garden and different restaurant chains posted better-than-expected gross sales and adjusted earnings for its fiscal second quarter, boosted by sturdy same-restaurant gross sales progress from its LongHorn Steakhouse enterprise. Darden additionally lifted its full-year income outlook.

A beat-and-raise quarter additionally helped elevate shares of Accenture (ACN), which jumped 7.1% after the skilled providers and consulting agency topped income and web earnings forecasts and elevated its full-year gross sales outlook. Year-over-year progress in synthetic intelligence bookings contributed to Accenture’s profitable quarter.

Shares of power gear maker GE Vernova (GEV) superior 4.9%. Several market observers highlighted the sturdy efficiency of GE Vernova inventory since its spin-off from General Electric earlier this 12 months, noting its potential to profit from rising demand for clear power, particularly from AI knowledge facilities. Last week, GE Vernova declared a dividend, introduced a inventory buyback plan, and raised its full-year gross sales forecast.