Key takeout
- The S&P 500 rose 0.6% on Thursday, May 1, securing its eighth straight winning sessions as strong Microsoft and Meta results helped boost tech stocks.
- Microsoft stocks surged after the software giant tops its quarterly forecasts and promoted the strength of its cloud computing and AI business.
- Eli Lilly and Chipmaker's shares of Pharma Firm have stumbled after both companies provided inactive advancement guidance.
Strong quarterly revenue reports from software giant Microsoft (MSFT) and Facebook's parent meta platform (META) have helped to alleviate concerns about the impact of tariffs on major technology companies.
The S&P 500 jumped 0.6%, extending its winning streak to eight consecutive trading sessions. The Dow added 0.2%, but strong days in the tech sector helped to raise the Nasdaq 1.5%.
Shares in Heating, Ventilation and Air Conditioning (HVAC) Company Carrier Global (CARR) surged 11.6%, marking the top performance of the S&P 500 on Thursday. Profit followed strong quarterly reporting, boosting full-year sales and profit estimates.
Quanta Services (PWR) shares jumped to 9.9% after electricity and utility contract services providers posted top and bottom line results above quarter 2025 forecasts. Quanta touted improved profitability in the environment and infrastructure solution terms for the electrical infrastructure solutions and the underground and infrastructure solutions segments.
Microsoft's third quarter sales and profits also surpassed analyst forecasts, with stocks in the tech giant surged 7.6%. The company highlights the dynamic growth of the intelligent crowd segment, home to Azure Cloud Computing Business. The company's Chief Financial Officer also discussed its promising trajectory on artificial intelligence (AI) demand, confirming Microsoft's plans to spend $80 billion in infrastructure spending throughout fiscal year 2025.
Medical device manufacturer Becton Dickinson (BDX) reduced its full-year profit forecast, citing the potential impact of tariffs imposed by the Trump administration. That stock plunged 18.1%, losing most of its S&P 500 shares. Following the cuts in guidance, analysts from various research firms downgraded Becton Dickinson's stock, citing inconsistencies in the company's execution and lack of confidence in their ability to drive growth.
Eli Lilly (LLY) has broken through sales and profit estimates in its first quarter results, due to a large GLP-1 weight loss and sales of diabetes treatments. However, the drug giant also reduced annual profit guidance, reflecting claims related to obtaining cancer treatments. Eli Lily's shares fell 11.6% on Thursday.
The overwhelming guidance also compared the stocks of semiconductor giant Qualcomm (QCOM). Chipmakers surpassed second-quarter sales and profit estimates, but sales forecasts for this quarter fell below expectations. The company downplayed the potential impact of tariffs.
