Dow jumps 500 points, Nasdaq adds 2% as comeback rally gains steam: Live updates

Trian Fund Management added a nearly $80 million position in U-Haul Holding during the second quarter, according to a securities filing released Wednesday.

Trian is run by activist investor Nelson Peltz, though it is not clear if he is trying to influence company management at U-Haul.

Shares of U-Haul were up more than 2% in midday trading.

Read more about Trian and other hedge fund moves on CNBC Pro.

— Jesse Pound

With investors reassured by stronger-than-expected July retail sales about the state of the U.S. economy, small cap stocks are outperforming mid- and large cap stocks at midday Thursday.

The Russell 2000 small cap index was recently ahead almost 2.8% against gains of about 2.1% in the S&P Midcap 400 index and 1.4% in the large cap S&P 500.

For the week, smallcaps are higher by 2.9% against 3.5% for large caps and 2.6% for midcaps.

Inside the smallcap universe, growth stocks are outperforming value stocks, with the Vanguard Small-Cap Growth Index Fund ETF rising 2.5% against 2.1% for the Vanguard Small-Cap Value Index Fund ETF.

— Scott Schnipper

Evercore ISI economist Ed Hyman told clients in a note that the three big pieces of news Thursday amounted to a “positive growth hat trick.”

Hyman referred to the stronger-than-expected retail sales, a tick down in jobless claims and strengthening Walmart sales in the note.

“The S&P is responding positively to this package of stronger data,” wrote the economist, who is among the most followed on Wall Street. “So today, good news is good news.”

—John Melloy

Morgan Stanley isn’t ready to upgrade Boeing after its troubles this year, but expects there’s a tactically bullish set-up for the stock in the fourth quarter.

Analyst Kristine Liwag maintained an equal-weight rating on the aircraft manufacturer following the firm’s Boeing Bull vs. Bear Lunch, in which investor attendees debated the outlook for the beleaguered stock that’s down more than 30% this year.

During the lunch, some bears eventually moved over to the bulls’ point of view, while bulls stuck to their own side, the analyst noted. Regardless, the analyst came to the conclusion there is too much uncertainty remaining in the stock to give it an upgrade, though there could be some near-term moves to the upside.

“Our takeaway is that we’ve seen significant volatility in Boeing’s stock and the pull of the rotation for an underperforming stock is strong. The seasonal trading pattern for Boeing’s stock in the past two years could be applicable for this year, providing a tactically bullish set-up into 4Q24,” analyst Kristine Liwag wrote on Thursday.

“However, in the long-term, we still see balanced risk reward as there continues to be significant uncertainties regarding Boeing’s long-term earnings power,” Liwag added.

The analyst’s $195 price target implies 15% upside from Wednesday’s close. The stock is up 2.4% in midday trading.

— Sarah Min

An auto sales recovery driven by incentives was behind the surprisingly strong retail sales report for July, according to LPL Financial.

Jeffrey Roach, chief economist at the firm, said a jump in motor vehicles and vehicle parts sales bolstered the latest retail sales report, which showed a 1% jump in July compared to the anticipated 0.3% increase, according to a Dow Jones estimate.

That’s because new car sales incentives were the highest they’ve been in more than three years, up to 7% of the average transaction price in July, from 6.4% on average in June, the economist noted.

However, investors should not expect the data to change what the Federal Reserve will do in September, especially with Atlanta Fed President Bostic saying the central bank cannot afford to be behind the curve amid signs of weakening in the labor market.

“Investors should expect more volatility in the near term as the economic data likely give conflicting signals,” Roach added.

— Sarah Min

Walmart shares jumping after modest second quarter EPS and revenue beats along with a solid same-store sales beat at its Walmart U.S. stores (up 4.2% vs. Wall Street expectations of up 3.4%).

The country’s biggest retailer also said it’s raising full year guidance. While that sounds good on paper, the raise was directly due to better-than-expected results in both the first and second quarters. Walmart hadn’t officially changed its guidance since first issuing its forecast in its fourth quarter report back in February. Today’s increased outlook now takes into account not just the modest 2-cent earnings beat from this morning, but also the far larger 8 cent EPS beat from the first quarter and the $2 billion beat on revenues three months ago.

Take those strong first half results out, and the new full year forecast actually indicates a fairly dour second half. The retailer’s implied second half EPS forecast appears to be $1.08-$1.16, well below the consensus estimate of $1.19. Walmart also gave third quarter earnings guidance that was below Wall Street expectations. CFO John David Rainey told CNBC’s Melissa Repko, “In this environment, it’s responsible or prudent to be a little bit guarded with the outlook, but we’re not projecting a recession.”

But investors seem to be ignoring tepid retail guidance this week. Shares of both Walmart and Coach parent Tapestry are getting a nice boost this morning despite disappointing forecasts. Both of those come after Home Depot shares rose despite giving a poor outlook on Tuesday.

– Robert Hum

Check out the companies making headlines in midday trading.

Walmart — Shares of the discount retailer jumped 7% on strong earnings. Walmart topped Wall Street’s quarterly estimates and lifted its full-year outlook as consumers show ongoing resilience. For the year, the company expects sales to rise between 3.75% and 4.75%, and adjusted earnings to come in between $2.35 and $2.43 per share.

Nike — The athletic apparel and sneaker retailer saw its shares climb about 4% after Bill Ackman’s Pershing Square Capital Management revealed a new stake in the company through its latest 13F regulatory filing. The firm owned more than 3 million shares of Nike at the end of June, a stake worth roughly $229 million, the filing disclosed.

Ulta Beauty — The beauty retailer saw shares pop more than 11% after a regulatory filing revealed that Warren Buffett‘s Berkshire Hathaway took a stake worth $266 million in the second quarter. The bet is relatively minor for Berkshire, whose equity portfolio is worth more than $300 billion, so it could have been bought by one of Buffett’s lieutenants Ted Weschler and Todd Combs.

The full list can be found here.

— Hakyung Kim

The Japanese yen weakened 1.1% against the U.S. dollar on Thursday and was last at 148.97 against the greenback.

Week to date, the yen has depreciated 1.6% versus the dollar, paring back much of its climb earlier in August. For the month, the yen has now strengthened just 0.7% against the dollar.

The benchmark Nikkei 225 index has advanced nearly 5% over the week on better-than-expected second-quarter GDP data.

— Hakyung Kim

Shares of Cisco Systems popped more than 7% and headed for their best day since March 2020 after the networking equipment maker topped fiscal fourth-quarter estimates and said its eliminating 7% of its workforce.

The company posted adjusted earnings of 87 cents per share on $13.64 billion in revenue. Cisco also reported its third consecutive drop in quarterly revenue.

Shares have slumped about 3% this year.

— Samantha Subin

Shares of the SPDR S&P Retail ETF (XRT) rose 3.3% in morning trading, putting it on pace for its best day in about a month. If that holds through market close, it’ll mark the fund’s best day since July 16, when shares gained around 3.6%.

— Sean Conlon, Gina Francolla

The blue-chip Dow Jones Industrial Average jumped 450 points, or 1.1%, on Thursday following better-than-expected weekly jobless claims and retail sales data. This market the sixth time the 30-stock average has moved more than 400 points in August.

Week to date, the Dow is up 2.4% and has managed to pare back much of its losses from broad sell-off in the previous trading week. The major average is now down 0.9% for the month.

The Dow began August in the red with declines of more than 400 points in the first three sessions. It fell as much at 1,034 points on August 5 before rallying 683 points on August 8.

 (Correction: Post incorrectly stated the number of times the Dow advanced this month.)

— Hakyung Kim

Stocks opened higher on Thursday, following better-than-expected retail sales and initial jobless claims data.

The S&P 500 ticked up 1%, while the Nasdaq Composite added 1.21%. The Dow Jones Industrial Average surged 400 points, or 1.23%.

— Brian Evans

Consumer spending increased more-than-expected in July, adding another layer of positive economic data to investors hoping to continue a recent market rally.

U.S. Retail sales increased 1% in July, surpassing an estimate from Dow Jones that forecast 0.3%. Excluding auto-related figures, sales ticked up 0.4%, which was also better than a 0.1% forecast.

— Brian Evans

These are the stocks making significant moves before the bell:

Read the full list of stocks here.

— Samantha Subin

Walmart shares popped more than 5% in early trading after the big-box retailer and Dow component reported quarterly earnings that beat Wall Street forecasts.

The big-box retailer raised its full-year outlook and reported improving sales and traffic to its website. Walmart said it now expects sales to accelerate by 3.75% to 4.75% for the full year, with adjusted earnings seen between $2.35 and $2.43 per share.

—Jeff Cox

Check out the companies making headlines in after-hours trading:

• Ulta Beauty — Shares popped about 12% after Warren Buffett’s Berkshire Hathaway’s 13F regulatory filing revealed the conglomerate took a new stake in the cosmetics company worth $266 million, a small position for Berkshire.
• Snowflake — The cloud company’s shares slipped 1% after Berkshire Hathaway entirely dissolved its stake in Snowflake in the second quarter, according to its latest regulatory filing.
• Cisco Systems — The stock jumped 6% after the networking company reported an earnings and revenue beat for its fiscal fourth quarter, and also issued an optimistic forecast. Cisco posted adjusted earnings of 87 cents per share on revenue of $13.64 billion, while analysts polled by LSEG expected it to earn 85 cents per share on revenue of $13.54 billion. For the fiscal year, both revenue and earnings fell from the prior year, its first drop since 2020. Cisco also announced it will cut 7% of its global workforce.

For more, read here.

— Pia Singh