The S&P 500 Gains and Losses Today: Expedia Soars as International Demand Drives Earnings Beat
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 Leads the Way
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. The strong demand for cloud computing and security products contributed to Akamai’s success. The company also raised its full-year earnings per share (EPS) guidance, citing a successful product launch and continued momentum in the first half of 2024.
Expedia Group Exceeds Expectations
Online travel platform operator Expedia Group (EXPE) exceeded top- and bottom-line expectations for the recently completed quarter. The company reported positive demand in international markets, which helped drive its strong performance. As a result, Expedia’s shares jumped 10.2%. However, the company expressed concerns about macroeconomic challenges and softening travel demand, echoing recent comments from other online travel firms.
Eli Lilly Benefits from Booming Sales
Eli Lilly (LLY) shares were up 5.5% on Friday, following the pharma giant’s strong set of earnings results. The company experienced booming sales of weight-loss and diabetes treatments Zepbound and Mounjaro. Eli Lilly also stated that it is making progress on boosting supply to keep pace with growing demand.
Insulet Faces User Growth Concerns
Shares of Insulet (PODD) suffered the heaviest losses of any S&P 500 stock, dropping 8.8%. The maker of insulin management devices suggested that new user growth could be lower than previously expected in the second half of 2024, despite topping second-quarter sales estimates. Insulet’s revenue gains were boosted by a 26.3% year-over-year jump in sales of its Omnipod device.
Intel Continues to Struggle
Intel (INTC) shares sank 3.8%, extending the stock’s August downdraft. The chipmaker reported a wider-than-expected quarterly loss last week and announced a $10 billion cost-saving plan, which includes laying off 15% of its workforce. However, analysts have questioned whether these initiatives will be sufficient to spur a recovery. On Friday, reports emerged that Intel postponed its “Innovation” event, originally scheduled for September.
Estee Lauder Faces Challenges
Deutsche Bank trimmed its price target for shares of Estee Lauder (EL), and the cosmetic company’s shares fell 2.8%. Estee Lauder is navigating a tough competitive environment in the U.S. and a challenging economic outlook in China.
Overall, the S&P 500 experienced a week of dramatic stock market fluctuations driven by concerns about the U.S. economy. While some companies, such as Akamai Technologies and Expedia Group, exceeded expectations and saw their shares soar, others, like Insulet and Intel, faced challenges and suffered losses. It remains to be seen how these economic uncertainties will continue to impact the stock market in the coming weeks.
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