Dow Jones Today: Stock Indexes Soar After Inflation Data Comes in Cooler Than Expected; Dow, S&P 500 on Pace to Snap 4-Session Skids

Americans Are Hungry for Deals. Olive Garden’s ‘Never Ending Pasta Bowl’ Is Winning Them Over

5 hr 41 min ago

Olive Garden said its sales show Americans are growing more hungry for two things: value, and lots of pasta.

Executives from Darden Restaurants (DRI), the parent company of Olive Garden, said during the company’s earnings call Thursday that the restaurant chain saw a big boost in its quarterly sales, thanks in part to the popularity of its $13.99 “never ending pasta bowl” special.

“Preference was strong and refill rates reached a record high demonstrating that guests continue to find abundance, and meaningful value at Olive Garden in this environment,” CEO Rick Cardenas said, according to a transcript from AlphaSense.

The CEO also said Olive Garden and Darden’s LongHorn Steakhouse have seen a growing number of middle to higher-income customers, echoing other restaurant chains and retailers saying they’re seeing consumers at higher income levels search for better deals.

Read the full article here.

–Aaron McDade

Cooling Inflation Could Pave the Way for Fed Rate Cuts

6 hr 21 min ago

The sudden drop of inflation in November could clear the decks for the Federal Reserve to cut interest rates to help boost the faltering job market. But the outlook is complicated by the government shutdown’s impact on the data.

Core inflation in the Consumer Price Index fell to a four-year low in November, the Bureau of Labor Statistics said Thursday. Normally that kind of news would be music to the ears of officials at the Federal Reserve who adjust the central bank’s interest rate with the goal of keeping inflation low. If the trend is confirmed in future months, the central bank might cut interest rates without fear of stoking inflation.

However, experts said the good news could prove to be a mirage, since the government shutdown in October and November may have distorted the picture. Among other abnormalities, the BLS did not report price data for October at all, since it couldn’t carry out its usual surveys that month.

Economists have long expected inflation to cool significantly because home prices have decelerated over the past few years after surging during the pandemic. That day may have finally arrived, which could help resolve the debate among Fed officials about whether to keep the fed funds rate higher for longer to fight inflation. Alternatively, they could lower it to boost the economy and encourage hiring to prevent the recent jobs slowdown from turning into a wave of high unemployment.

“A surprisingly sharp decline in U.S. consumer price inflation should grease the wheels for further Fed easing in 2026,” Sal Guatieri, senior economist at BMO Capital Markets, wrote in a commentary.

Read the full article here.

–Diccon Hyatt

Can the S&P 500 Get to 8000? These Experts Say Yes—But It’ll Take Big Rate Cuts

6 hr 55 min ago

What will it take to get the S&P 500 above 8000 next year? More than the two interest-rate cuts JP Morgan expects.

The bank’s analysts broadly expect the benchmark index to finish 2026 at 7500, implying a 10% rise from recent levels; in research published Thursday, the bank said it expects two quarter-percentage point interest-rate cuts from the Fed next year. Further cuts, the bank said, could help the index to 18% gains, matching its recent year-to-date rise.

CME FedWatch puts the highest probability on two cuts by December 2026. Prediction markets put slightly higher odds on three cuts, with Polymarket bettors anticipating rates that come down by three-quarters of a percentage point next year.

With the S&P 500’s valuations driven upward by artificial intelligence-linked stocks, investors and investment shops have started to ring the alarm on potentially anemic annual returns on the horizon. The benchmark index’s average annual return has been about 10% since the late 1950s, and JPMorgan’s base-case outlook implies investors can bag another year of double-digit gains. Anything beyond that will require a little help from the Fed, according to the bank’s research.

Some investors expect a new Federal Reserve chairman to answer to political pressures and lower rates below the 3% to 3.25% range, but that’s not what JPMorgan analysts were getting at. In their notes, they specified that the their more-bullish outlook for the S&P 500 is based on the assumption that the Fed cuts further due to “improving inflation dynamics.”

Read the full article here.

–Crystal Kim

A Big Activist Investor Is Eyeing Lululemon’s Turnaround. Its First Move: Suggesting a CEO

7 hr 21 min ago

Lululemon needs a new CEO. One investor’s preferred candidate might not be a a stretch.

Less than a week has passed since Lululemon announced it was seeking a CEO, and one of its biggest stakeholders is already floating a candidate who—based on the market’s reaction—seems to appeal to fellow investors: Jane Nielsen, who contributed to turnarounds at Ralph Lauren (RL) and Coach, now part of Tapestry (TPR).

Activist investor Elliott Investment Management has put forward Nielsen, the notion which was first reported by The Wall Street Journal. Elliott has acquired a more than $1 billion stake in the retailer, according to a person familiar with the matter, giving it sway in a company with a market value of about $25 billion.

Lululemon Athletica (LULU) didn’t respond to a request for comment in time for publication. But investors appear to be considering the involvement of Elliott—and its pick of Nielsen, previously CFO at Ralph Lauren and now a board member at Mondelēz International (MDLZ)—warmly: Company shares were recently up more than 4%. (They remain down more than 40% this year, part of why a new chief is needed in the first place.)

“Lululemon is one of the most powerful brands in retail, defined by exceptional products, deeply engaged communities and significant global potential,” Nielsen told The Journal. “I would welcome the chance to discuss this opportunity with the Lululemon board.”

Read the full article here.

–Sarina Trangle

FactSet Stock Leads S&P 500 Decliners Today

8 hr 32 min ago

FactSet Research Systems (FDS) was the worst-performing stock in the S&P 500 Thursday afternoon after its fiscal 2026 first-quarter net cash provided by operating activities and free cash flow came in far below analysts’ expectations.

Shares sank more than 8% after the Norwalk, Conn.-based financial data solutions firm reported cash provided by operating activities of $121.3 million and free cash flow of $90.4 million. Analysts polled by Visible Alpha had expected $179.9 million and $154.8 million, respectively.

FactSet’s adjusted earnings of $4.51 per share and revenue of $607.6 million topped consensus estimates.

Including today’s sharp declines, shares of FactSet are down more than 40% this year.

Chipotle Doesn’t Want Its Protein Fans to Feel Under-Served

9 hr 11 min ago

Everybody seemed to want, and to want to sell, more protein this year. Now Chipotle is carrying the torch into 2026.

Chipotle Mexican Grill (CMG), the burrito chain where diners are known to use ordering “hacks” in hopes of landing more meat and other favored ingredients—one long-running theory is that the way to get a bit more is by asking for half of one, half of another, like beef and chicken—on Thursday said it now has an official “high-protein menu.”

In practice, that includes what the company called its “first-ever” snack, a 4-ounce bowl of chicken or steak priced below $4; regular-sized bowls and burritos with double meat; and other new bowls and salads. The menu launches Tuesday, the company said.

The announcement references a survey indicating that Americans’ “top diet pattern” this year was high protein. And it comes as other food and drink companies have sought to bring Americans more protein, which is generally seen as helpful to those seeking to feel full and build muscle, among other things, in their offerings ranging from snacks to drinks.

Starbucks (SBUX) earlier this year said it would put protein in foam. More recently, companies have announced protein-focused fruit punches, plant-based coffees, and waffles; Khloé Kardashian added it to her popcorn brand. Chipotle’s announcement touches on several of the reasons diners might look for more protein, offering up celebrity-inspired meals aimed at athletes, people seeking to lose weight, and general wellness.

Read the full article here.

–David Marino-Nachison

Instacart’s AI-Driven Pricing Is Being Investigated by the FTC—Here’s What You Need to Know

9 hr 31 min ago

Instacart’s use of AI-driven pricing is drawing attention from federal regulators. 

The Federal Trade Commission, a consumer protection agency, is looking into the grocery delivery giant’s use of AI pricing tools after an investigation found it was charging customers substantially different prices for the same items, according to a Reuters report Wednesday.

An investigation by Consumer Reports, Groundwork Collaborative, and More Perfect Union published earlier this month found prices for about three-quarters of surveyed items on Instacart varied by up to 23% from user to user among volunteers shopping at the same time. The report estimated such price variations could add up to about $1,200 per year in additional costs for the typical household shopping on Instacart. A review of an Investopedia editor’s transactions on Instacart found that prices for a range of products at Costco (COST) also varied from one order to the next.

“Much of what’s been reported has mischaracterized how pricing works on Instacart,” a company spokesperson told Investopedia. “First, our retail partners control their pricing strategies, and we work with them to align their online and in-store pricing wherever possible. Second, these tests are not dynamic pricing nor surveillance pricing—prices on Instacart do not change in real time nor are they based on supply or demand, and we never use personal, demographic, or user-level behavioral data to set item prices. These tests are a form of randomized A/B testing, similar to the way retailers have long run pricing tests between different stores,” the spokesperson said.

The FTC said in an emailed statement Thursday that it has a “longstanding policy of not commenting on any potential or ongoing investigations. But, like so many Americans, we are disturbed by what we have read in the press about Instacart’s alleged pricing practices.”

Read the full article here.

–Aaron McDade

Eli Lilly Stock Rises on Data Patients Keep Majority of Weight Loss Switching to Pill from Injectable Wegovy, Zepbound

10 hr 34 min ago

Investors are responding positively to Eli Lilly’s newest late-stage trial results.

Shares of Eli Lilly (LLY) advanced more than 2% Thursday morning after the pharmaceutical firm said a Phase 3 trial found patients taking its new pill to treat obesity, orforglipron, kept the majority of weight loss from injectable weight-loss drugs such as its Zepbound and rival Novo Nordisk’s (NVO) Wegovy.

Lilly said orforglipron “achieved the primary and all key secondary endpoints for weight maintenance vs. placebo at 52 weeks following weight loss on Wegovy or Zepbound.”

Indianapolis-based Lilly said it has submitted orforglipron to the U.S. Food and Drug Administration for the treatment of obesity. Last month, the drug was granted a Commissioner’s National Priority Voucher by the FDA, which could lead to an expedited review.

Orforglipron “helped people maintain the weight they worked hard to lose,” said Kenneth Custer, Ph.D., executive vice president and president, Lilly Cardiometabolic Health. “Participants in this study were able to switch directly from the highest tolerated doses of available injectable therapies onto oral doses of orforglipron. If approved for the treatment of obesity, orforglipron could provide a convenient alternative for the millions of individuals living with obesity around the globe to continue their long-term health journey.”

Lilly shares have advanced about 28% this year. U.S.-listed shares of Novo Nordisk were little changed Thursday but have declined about 45% in 2025.

Consumer Discretionary Is Top-Performing S&P 500 Sector Thursday Morning, Thanks to Lululemon

11 hr 18 min ago

Lululemon Athletica (LULU) shares are powering the S&P 500 Consumer Discretionary sector early Thursday.

Shares of the athleisure company popped 6.5% about an hour into the trading day following a report in The Wall Street Journal that activist Elliott Investment Management has taken a $1 billion stake in the company and is advocating for Jane Nielsen, a former Ralph Lauren executive, to become Lululemon’s next CEO.

The S&P 500 Consumer Discretionary sector is the top performer of the 11 industries tracked by the benchmark index, up 2%.

Other stocks powering the sector advance are Williams-Sonoma (WSM), Starbucks (SBUX), and DoorDash (DASH), which are all up more than 4%.

Birkenstock Shares Fall as Outlook Disappoints

11 hr 54 min ago

Birkenstock Holding (BIRK) shares fell 4% at the opening bell after the German sandals maker gave weaker-than-expected fiscal 2026 guidance.

Birkenstock expected adjusted earnings of 1.90 euros per share to 2.05 euros per share on revenue of 2.30 billion euros to 2.35 billion euros. Analysts polled by Visible Alpha were looking for EUR2.07 and EUR2.37 billion, respectively.

The company’s fiscal 2025 fourth-quarter profit and revenue beat consensus estimates.

CEO Oliver Reichert said, “As we look forward into fiscal 2026, we see a continuation of the strong consumer demand and double-digit growth. Our growth is currently only limited globally by our production capacity and desire to maintain scarcity; consumer demand remains robust globally.”

Birkenstock shares are down roughly 20% this year.

November’s Inflation Rates Defy Expectations, Coming in Lower Than Forecast

12 hr 13 min ago

Inflation fell to its lowest in years in November, according to one important measure.

Consumer prices rose 2.7% over the 12 months through November, the Bureau of Labor Statistics said Thursday. That was down from a 3% annual increase in September and lower than the 3.1% increase forecasters had expected, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. “Core” inflation, which excludes volatile prices for food and energy, rose 2.6% over the year, down from a 3% annual increase in September and hitting its lowest since 2021.

The reduction in core inflation was especially notable because economists consider core inflation measures to be a more accurate indicator of price trends. Food and gas prices can fluctuate for reasons unrelated to broader inflation trends.

Inflation decelerated because of falling prices for hotel rooms, recreation, and clothing, and a relatively small increase of 0.2% in shelter prices between September and November.

Thursday’s report had been delayed by just over a week because of the government shutdown in October and November, and the bureau did not publish a report for October’s prices.

–Diccon Hyatt

Trump Media & Technology Stock Soars on $6B Merger Agreement

13 hr 39 min ago

Trump Media & Technology Group (DJT) shares entered Thursday down nearly 70% this year. They’re making back a decent chunk of it before the bell.

Shares of President Donald Trump’s firm, the parent of Truth Social, soared 25% in premarket trading after it and fusion power company TAE Technologies announced they had signed a $6 billion, all-stock merger agreement. Shareholders of each would own about half the combined company upon closing, which they expect to occur in mid-2026.

Upon closing, the combined firm “expects to site and commence construction of the first utility-scale fusion power plant in 2026,” they said, adding that such plants “are expected to provide economic, abundant, and dependable electricity that would help America win the A.I. revolution and maintain its global economic dominance.”

Trump Media CEO Devin Nunes and TAE CEO Dr. Michl Binderbauer intend to serve as co-CEOs of the combined company.

“Fusion power will be the most dramatic energy breakthrough since the onset of commercial nuclear energy in the 1950s—an innovation that will lower energy prices, boost supply, ensure America’s A.I.-supremacy, revive our manufacturing base and bolster national defense,” Nunes said. “TMTG brings the capital and public market access to quickly move TAE’s proven technology to commercial viability.” 

Trump Media & Technology Group shares reached nearly $80 a share in their public debut in March 2024, but closed trading Wednesday at $10.47 each.

Darden Restaurants Stock Rises on Strong Olive Garden, LongHorn Steakhouse Same-Restaurant Sales, Boosted Outlook

14 hr 19 min ago

Darden Restaurants CEO Rick Cardenas said the company’s strong fiscal 2026 second-quarter results were driven by “being brilliant with the basics.”

The Orlando-based company’s shares surged 4% in premarket trading Thursday after it reported better-than-expected same-restaurant sales across its brands and lifted its full-year outlook.

Darden Restaurants (DRI) posted consolidated sales of $3.10 billion and same-restaurant sales of 4.3%. Analysts surveyed by Visible Alpha had expected $3.07 billion and 2.87%, respectively. Adjusted earnings of $2.08 per share came up a penny short of consensus estimates.

Darden registered same-restaurant sales growth of 5.9% at LongHorn Steakhouse, 4.7% at Olive Garden, and 0.8% at its Fine Dining segment, which includes Ruth’s Chris Steak House. All comfortably exceeded analysts’ expectations.

The company raised its fiscal 2026 forecasts for sales growth to a range of 8.5% to 9.3% from 7.5% to 8.5%, and same-restaurant sales growth to 3.5% to 4.3% from 2.5% to 3.5%.

“The second quarter exceeded our top-line expectations as every segment delivered positive same-restaurant sales,” Cardenas said. “Our restaurant teams did a great job of being brilliant with the basics, driving record, or near-record, guest satisfaction scores across all our brands. Despite facing significant commodity headwinds, we leveraged our four competitive advantages to provide strong value for our guests and we made appropriate investments in the business to ensure long-term success.”

Darden Restaurants shares entered Thursday up less than 2% this year.

Stock Futures Rise Ahead of Inflation Data

15 hr 17 min ago

Futures contracts associated with the Dow Jones Industrial Average rose 0.2%.

S&P 500 futures advanced 0.5%.

Nasdaq 100 futures were up 0.8%.