STORY: The Nasdaq and S&P 500 gained on Thursday, driven by Tesla’s positive earnings forecast and despite other mixed corporate results.
The Dow dipped a third of a percent, the S&P added two-tenths of a percent and the Nasdaq climbed three-quarters of a percent.
The yield on the benchmark 10-year Treasury note eased from a three-month high, as traders reassessed their bets on the Federal Reserve’s path of rate cuts.
Robert Conzo is CEO and managing director of The Wealth Alliance.
“So what’s the real question now? The real question is, is the Fed going to keep cutting rates? And that translates back to, what is the economy doing? What are these data points going to be showing? Economy is strong. I think the Fed’s gonna not do the November 1 [rate cut]. And then the real question is, are they going to keep rates higher for longer? That’s what the bond market is worried about.”
In earnings news, shares of Tesla posted their biggest single-day gain in over a decade, rising nearly 22% after the EV-maker reported a robust quarterly profit and surprised investors with a prediction of 20% to 30% sales growth next year.
Shares of Southwest Airlines lost 5.5% after earnings and after the company reached an agreement with activist investor Elliott Investment Management.
UPS shares gained more than 5% after the parcel service provider reported a rise in third-quarter profit, on rebounding volumes and cost cuts.
And shares of Boeing fell after factory workers voted to reject a contract offer and continue a more than five-week-long strike. The stock is down roughly 38% year to date.
