Key Takeaways
- The S&P 500 fell 0.4% on Thursday, moving back from record highs of the past two days.
- Software engineering firm Epam Systems shares fell after its lower-than-expected earnings outlook raised worries about the company’s growth potential.
- Toymaker Hasbro’s stock jumped after its earnings came in better than expected, and the company laid out a new sales strategy that targets online fans.
After hitting record highs over the past two sessions, the S&P 500 stepped back Thursday.
The S&P 500 declined by 0.4%, while the Dow Jones Industrial Average fell by 1.0% and the Nasdaq moved lower by 0.5%.
Walmart (WMT) shares dropped by 6.5% after the retailer projected slower revenue growth than analysts expected. Shares of competitors Amazon (AMZN) and Target (TGT) also moved lower.
However, Walmart didn’t experience the biggest decline of the S&P 500. Software engineering firm Epam Systems (EPAM) shares fell 12.8% after its earnings report also included weak guidance. Like Walmart, the Pennsylvania-based firm reported quarterly financials that were better than expected. Still, its quarterly and full-year outlook for earnings per share fell short of estimates, raising questions about the company’s growth potential.
Law enforcement equipment firm Axon Enterprises (AXON) dropped 8.7% as the Taser maker fell for the second straight session following an analyst ratings downgrade.
Royal Caribbean Cruises (RCL) fell by 7.6%, and other cruise lines were also down in the wake of comments from newly confirmed Commerce Secretary Howard Lutnick. He said that passenger boats could be subject to U.S. taxes. Carnival (CCL) fell by nearly 5.9% and Norwegian Cruise Lines (NCLH) dropped by 4.9%.
Hasbro (HAS) was the S&P 500’s biggest gainer, with its shares increasing 13.0% after the toy maker posted quarterly results that were better than analysts’ estimates. The Transformers maker also projected a modest revenue increase in 2025 and said it would adjust its strategy to focus more on reaching fans online.
Medical device maker Baxter International (BAX) rose by 8.5% after its better-than-expected earnings report showed that disruptions from Hurricane Helene on its North Carolina plant were less severe than initially projected.