Key Takeaways
- The S&P 500 was little changed on Thursday, Aug. 29, following an upward revision to second-quarter economic growth figures.
- Best Buy shares soared as strength in tablets and computers helped the electronics retailer top sales and profit forecasts.
- Shares of Dollar General plummeted after the discount retailer’s sales and profits fell short of estimates.
Major U.S. equities indexes were mixed after a report showed that the U.S. gross domestic product (GDP) grew more than previously thought in the second quarter.
After trading higher for much of the session, the S&P 500 lost steam in the afternoon to close flat on the day. The Dow jumped 0.6% to print an all-time closing high for the third time this week, while a post-earnings decline from Nvidia (NVDA) shares weighed on the Nasdaq, which slipped 0.2%.
The top daily performance in the S&P 500 belonged to shares of Best Buy (BBY), which surged 14.1% after the electronics retailer reported better-than-expected revenue and net income for the second quarter. Although comparable store sales slipped year over year, Best Buy highlighted sales growth in tablets and computers in the quarter. The company said it expects “uneven” consumer behavior to remain yet still boosted its full-year profit forecast.
Medical device maker Cooper Companies (COO) also topped sales and profit forecasts with its quarterly results while increasing its annual outlook, and its shares jumped 11.8%. Cooper pointed to market share gains in contact lenses, where it expects strong demand to continue, as well as firmness in its fertility and surgical businesses.
Shares of West Pharmaceutical Service (WST), a maker of injectable pharmaceutical packaging and delivery systems, added 5.8% on Thursday. West Pharma shares plunged in late July after the company lowered its full-year sales and profit forecasts, citing lower demand for its products as biotech customers worked through existing inventories, but the stock has been trending higher since then.
Dollar General (DG) shares plummeted 32.2%, racking up the steepest loss of any S&P 500 stock. The discount retailer’s stock plunged after its second-quarter sales and profits fell short of analysts’ expectations. The company attributed its soft sales performance to financial constraints faced by its customers but highlighted initiatives to enhance the value and convenience of its stores. Shares of competitor Dollar Tree (DLTR) fell 10.2% on the day.
Shares of data storage provider NetApp (NTAP) sank 9.6% following the company’s quarterly earnings release. Although sales and profits for the period exceeded forecasts, driven by strength in NetApp’s all-flash memory arrays, the company noted continued headwinds related to customers limiting their spending on storage and other IT investments amid an uncertain macroeconomic environment.
Nvidia shares fell 6.4% on the day. Similar to NetApp, the AI chip giant reported better-than-expected results for the recent quarter, but a slowdown in the pace of growth raised questions about whether the stock can sustain its explosive trajectory.
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