:max_bytes(150000):strip_icc()/GettyImages-1571833863-07093d86797741929337d0abe5ef53b7.jpg?w=1024&resize=1024,1024&ssl=1 "Expedia Soars as International Demand Drives Earnings Beat")
Key Takeaways
- The S&P 500 gained 0.5% on Friday, Aug. 9, 2024, closing out a week of dramatic stock market fluctuations driven by concerns about the U.S. economy.
- Expedia shares jumped as international demand helped the travel platform operator top second-quarter sales and profit forecasts.
- Insulet shares dropped after the insulin pump maker suggested new user growth could be lower than previously expected in the second half of 2024.
The S&P 500 and the Nasdaq added around 0.5% on Friday, wrapping up a volatile trading week as economic uncertainties pressured stocks. The Dow was up 0.1% on the day.
Akamai Technologies (AKAM) shares popped 10.9% higher, marking the best daily performance in the S&P 500 after the company posted better-than-expected sales and profits for the second quarter, boosted by strong demand for cloud computing and security products. Akamai also lifted its full-year earnings per share (EPS) guidance, pointing to a successful product launch and continued momentum in the first half of 2024.
Online travel platform operator Expedia Group (EXPE) also exceeded top- and bottom-line expectations for the recently completed quarter, citing positive demand in international markets, and its shares jumped 10.2%. However, Expedia expressed concerns about macroeconomic challenges and softening travel demand, echoing recent comments from other online travel firms.
Eli Lilly (LLY) shares were up 5.5% on Friday, adding to gains posted in the prior session following the pharma giant’s strong set of earnings results. Lilly benefitted from booming sales of weight-loss and diabetes treatments Zepbound and Mounjaro, and the company said it’s making progress on boosting supply to keep pace with growing demand.
Shares of Insulet (PODD) suffered the heaviest losses of any S&P 500 stock, dropping 8.8% after the maker of insulin management devices suggested new user growth could be lower than previously expected in the second half of 2024, despite topping second-quarter sales estimates. Revenue gains were boosted by a 26.3% year-over-year jump in sales of the company’s Omnipod device.
Intel (INTC) shares sank 3.8%, extending an August downdraft the stock has endured since the chipmaker reported a wider-than-expected quarterly loss last week. Along with the results, Intel announced a $10 billion cost-saving plan that includes laying off 15% of its workforce, but analysts questioned whether the initiatives will be sufficient to spur a recovery. On Friday, reports emerged that Intel postponed its “Innovation” event, originally scheduled for September.
Deutsche Bank trimmed its price target for shares of Estee Lauder (EL), and the cosmetic company’s shares fell 2.8%. The maker of makeup and other beauty products is navigating a tough competitive environment in the U.S. and a challenging economic outlook in China.
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