Jason Redmond / AFP / Getty Images
Key Takeaways
- The S&P 500 advanced 0.6% on Thursday, May 1, securing its eighth straight winning session as strong results from Microsoft and Meta helped boost tech stocks.
- Microsoft shares surged on the news that it had surpassed its quarterly forecasts. The software giant also cited its cloud computing and AI business as strengths.
- After both companies’ disappointing forward guidance, shares of Eli Lilly and Qualcomm fell.
Major U.S. equity indexes rose on Thursday, after strong quarterly earnings from software giant Microsoft (MSFT), and Facebook parent Meta Platforms Meta Platforms (META), helped alleviate concerns about the potential impact of tariffs.
The S&P 500 jumped 0.6%, extending its winning streak to eight consecutive trading sessions. The Dow rose 0.2% and the Nasdaq gained 1.5% after a good day for the tech industry.
Shares of heating, ventilation, and air conditioning (HVAC) company Carrier Global (CARR) soared 11.6% to log the S&P 500’s top performance on Thursday. The gains were a result of a strong quarterly report, which saw Carrier surpass sales and profit forecasts while boosting the outlook for the entire year.
Quanta Services (PWR) shares jumped 9.9% after the provider of electric and utility contracting services also posted better-than-expected top- and bottom-line results for the first quarter of 2025. Quanta praised an improvement in profitability for its Electric Infrastructure Solutions and Underground and Infrastructure Solutions segments. The company said this showed resilience and adaptability to changing market conditions.
Microsoft’s fiscal third quarter sales and profit also exceeded analysts’ expectations. Shares of the tech giant soared 7.6%. The company emphasized the rapid growth of its Intelligent Cloud division, which is home to its Azure cloud-computing business. The company’s chief financial office (CFO), also discussed the promising trajectory of artificial intelligence (AI) and confirmed Microsoft’s plans to spend $80 billion on infrastructure throughout fiscal 2025.
Becton, Dickinson, a manufacturer of medical devices, reduced its profit forecasts for the year. They cited the possible impact of tariffs imposed by Trump’s administration. Its shares plunged 18.1%, losing the most of any S&P 500 stock. Analysts at several research firms downgraded Becton Dickinson’s stock after the guidance cut. They cited inconsistencies in Becton Dickinson’s execution, and a lack confidence in its ability drive growth.
Eli Lilly’s (LLY) first-quarter results exceeded sales and profit expectations, largely due to strong sales of its GLP-1 diabetes and weight loss treatments. The pharmaceutical giant cut its profit guidance for the full year, reflecting a charge relating to its acquisition of cancer treatment. Eli Lilly’s shares fell 11.6% on Friday.
The shares of semiconductor giant Qualcomm fell 9.0% as a result of the disappointing guidance. While the chipmaker’s sales and profits for its fiscal second-quarter exceeded expectations, its forecast for the current quarterly came in below expectations. The company played down the potential impact of tariffs.
