The stock market closed on a positive note on Thursday, with all three major indexes ending the day in the green. The Dow Jones Industrial Average saw a climb of nearly 350 points, or 0.91%, while the S&P 500 added 0.58%, setting another record. The Nasdaq Composite also rose by 0.30%. One notable stock that performed well was Wells Fargo, which saw a 7% increase after a regulatory penalty tied to its 2016 fake accounts scandal was lifted.
In economic news, consumer spending experienced a sharp decline in January, with advance retail sales falling by 0.8% compared to the estimated 0.3% decline predicted by economists. Investors will be keeping an eye on the release of the producer price index for January on Friday morning for further economic data.
Shake Shack, the popular burger chain, reported strong fourth-quarter earnings, leading to a surge in its stock price. The company’s revenue reached $286.2 million, surpassing analysts’ expectations of $280.3 million. Shake Shack also revealed plans for expansion, aiming to open 80 new locations in 2024, which would bring its total number of restaurants to nearly 600.
Ford Motor CEO Jim Farley emphasized the importance of the company’s “Pro” business in the future of the auto industry. This unit includes Ford’s commercial and government fleet business, as well as other operations and services tailored for business customers. Farley stated that the Pro business is undervalued and projected pretax earnings of $8 billion to $9 billion for this year, surpassing the expected earnings from its traditional business. He also highlighted the faster-than-anticipated adoption of electric vehicles by fleet customers.
Toast, a restaurant management software company, announced layoffs affecting around 10% of its workforce, totaling 550 employees. The job cuts are expected to result in charges of $45 million to $55 million, primarily in the first quarter, but will lead to annualized savings of $100 million. Toast also reported fourth-quarter earnings that exceeded Wall Street’s expectations, with a nearly 35% year-over-year increase in revenue and narrowed net losses.
In an exciting development, Intuitive Machines, a company that went public through a SPAC merger last year, successfully launched its first mission to the moon. The company’s stock soared by 34.5% following the news. Intuitive Machines aims to achieve 16 milestones with its IM-1 cargo mission, and as of Thursday afternoon, it had already accomplished three of them, including the launch, separation from the rocket, and autonomous commissioning.
Overall, Thursday was a positive day for the stock market, with various companies making significant strides and investors eagerly awaiting economic data releases. It will be interesting to see how these developments shape the market in the coming days and weeks.
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