:max_bytes(150000):strip_icc()/GettyImages-21578498241-dbf5a0203e614613994187f167cb54b4.jpg "Eli Lilly Soars on Growing Demand for Weight-Loss Drugs")
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Key Takeaways
- The S&P 500 rebounded on Thursday, Aug. 8, 2024, jumping 2.3% as fresh jobless claims data helped ease worries about the economy.
- Eli Lilly shares popped after the drugmaker reported better-than-expected earnings for the second quarter, boosted by the popularity of its weight-loss drugs.
- Electronic technology manufacturer Parker-Hannifin reported strong demand in its aviation services business, and its shares took off.
Major U.S. equities indexes rallied after jobless claims data released Thursday helped ease worries about the economy. The S&P 500 jumped 2.3%, marking the strongest daily performance for the benchmark index since November 2022. The technology sector spearheaded the broader market recovery, helping the Nasdaq soar 2.9%. The Dow closed 1.8% higher.
Monolithic Power Systems (MPWR) shares led the S&P 500 higher on Thursday, jumping 11.4%. The semiconductor firm specializing in power management technology posted strong quarterly financial results earlier in the week, beating revenue and earnings per share (EPS) expectations amid growing demand for artificial intelligence (AI) power solutions.
Shares of electronic technology manufacturer Parker-Hannifin (PH) soared 10.8%. The provider of motion and control technologies also topped quarterly sales and profit estimates, benefitting from robust demand in its aerospace services segment, despite headwinds in diversified industrials. Aftermarket strength helped boost sales and margins in Parker-Hannifin’s aviation business.
Eli Lilly (LLY) shares popped 9.5% after the drugmaker reported better-than-expected sales and profits for the second quarter. Sales of Lilly’s diabetes and weight-loss treatments Mounjaro and Zepbound underpinned the strong performance. The company also raised its full-year revenue and earnings outlook, citing production expansions to improve its supply of the popular drugs.
Shares of McKesson (MCK) sank 11.3% on Thursday, marking the steepest drop of any stock in the S&P 500, after the distributor of health care supplies missed quarterly sales estimates. McKesson said fewer product launches, slumping demand for COVID test kits, and a key customer shifting from arthritis treatment Humira to a biosimilar as factors behind the revenue shortfall.
Monster Beverage (MNST) shares lost 10.9% following weaker-than-expected financial results. The company said slower foot traffic at convenience stores has pressured sales of energy drinks.
Shares of Warner Bros Discovery (WBD) dropped 8.9% after the entertainment giant posted a loss of nearly $10 billion for the second quarter, steeper than expected by analysts. The results included a $9.1 billion non-cash goodwill impairment charge reflecting a write-down in value of the company’s cable networks, which have been disrupted by streaming services.