The US equity benchmark averages on Thursday were mixed, with the S&P 500 Index rising slightly due to gains by Tesla and other companies.
The S&P 500 Index was 0.1% higher at the time this article was written, and the Nasdaq Composite index was 0.6% higher. The Dow Jones Industrial Average, however, fell by 0.6% since the last close.
CNBC reports that more than 32 percent of S&P 500 companies have reported their third quarter numbers. FactSet reports that 76% of these companies have exceeded analyst expectations.
The stock market was recovering from the steep declines of Wednesday. Dow Jones dropped more than 400 point on Wednesday. S&P500 and Nasdaq Composite both fell 1%.
Treasury yields dropped on Thursday and this brought some relief to the stock market. On Wednesday, yields were sharply higher. This led to a steep decline in the benchmark stock average.
Rob Haworth is a senior investment strategist with US Bank Asset Management. He spoke to CNBC.
Rates have been the main source of pressure. This is what’s dampened the enthusiasm of equity markets, but you still haven’t seen enough big earnings to push them to new highs.
Tesla’s stock jumps following positive results
Tesla shares jumped by nearly 20% following its earnings report for the third quarter, which met analyst expectations.
Investors were surprised when the electric car maker announced that it expected a 20-30% increase in sales for next year.
The company reported that robust earnings were driven by an improvement in margins, and a better outlook for deliveries.
Reuters reported that the company’s efforts to diversify its business beyond automobiles, including forays in robotaxis, artificial intelligence and robotics, were also largely unimpressive earlier this month.
IMF: India is outperforming other emerging markets
International Monetary Fund announced on Thursday that India was the fastest growing emerging market. IMF predicts that growth will continue over the next few years.
CNBC reported that the IMF also said India had benefited from cyclical economic growth. According to the fund, India’s economic growth is estimated at 7% for this year and 6,5% by 2025.
CNBC quoted IMF Asia and Pacific Department Director Krishna Srinivasan as saying: “There’s scope for an even higher potential if more structure reforms are implemented, particularly labor market reforms and some fiscal reforms and perhaps a greater infrastructure push.”
United Parcel Service surges 5%
United Parcel Service shares soared by more than 5% Thursday following the firm’s impressive third-quarter earnings and revenues.
Tipranks.com reports that the shipping and logistics firm’s adjusted profit increased 12.1% over last year to $1.76 per shares, which is above analyst expectations of $1.63.
Lam Research’s stock rose by more than 6 percent after its fiscal first-quarter figures exceeded expectations.
Boeing stocks fall as workers reject new deal
Boeing shares continued to fall Thursday. They dropped nearly 2% as workers in a strike refused the latest offer of a contract.
The contract was rejected by 64% of workers at the Aeroplane Maker’s US West Coast factories on late Wednesday.
Boeing’s major suppliers have also been affected by this latest development.
Spirit AeroSystems shares fell 4% Thursday.
Unemployment claims are falling
The number of Americans filing unemployment claims for the first week in history unexpectedly dropped by 15,000 people.
This latest data shows that the US economy is still resilient, even as we approach the Federal Reserve policy meeting scheduled for November.
The political climate in the US will be closely monitored by investors.
In a Wall Street Journal survey conducted on Wednesday, former president Donald Trump was ranked higher than vice-president Kamala Harria.
The post S&P 500, Nasdaq, and Dow climb; Tesla soars with strong earnings, Boeing falls may be updated as new developments unfold.
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