Dow rises 500 points as new jobs data boosts confidence

The Dow and other indexes rose Thursday morning as new labor market data came in better than expected, easing concerns about a potential recession. After that, stocks started to recover recent massive sales.

Department of Labor reported that initial claims for state jobless benefits fell by 17,000 to a seasonally adjusted 233,000 for the week ended Aug. 3. This marks the biggest drop in about 11 months. In comparison, economists had forecast 240,000 claims for the past week.

In the morning, the Dow Jones Industrial Average rose 508, or 1.3 percent, to 39,272. The S&P 500 added 1.5 percent, while the tech-rich Nasdaq Composite rose 1.7 percent.

Eli Lilly shares rise more than 8%

Eli Lilly, the American pharmaceutical company famous for its diabetes drugs, released its earnings report on Thursday, which boosted the stock price by more than 8% in the morning. The company said it was raising its 2024 revenue guidance by $3 billion to $45.4 billion and $46.6 billion.

Overall, the company’s second-quarter revenue rose 36% year over year to $11.3 billion, compared to $8 billion in the same period in 2023.

The stock of Warner Bros. Discovery drops over 10%

The stock of Warner Bros. Discovery down more than 10% the morning after the entertainment giant reported $11.2 billion in impairments and charges.

In the second quarter, the company recorded a non-cash goodwill impairment charge of $9.1 billion related to its TV Networks segment, as well as $2.1 billion in costs related to its merger, Warner Bros. Discovery. said in its quarterly earnings report Wednesday.

– Bruce Gil and Rocio Fabbro contributed to this article