Business

Nasdaq, S&P 500 poised for a comeback as Tesla earnings lift spirits

Admin


Nasdaq futures jumped on Thursday to lead a rebound in US stocks as Tesla’s (TSLA) surprisingly solid results and high-flying sales forecast lifted hopes for a strong earnings season.

Futures on the tech-heavy Nasdaq 100 (NQ=F) surged almost 0.9%, while S&P 500 futures (ES=F) rose 0.5%. But Dow Jones Industrial Average futures (YM=F) struggled to join the advance, edging down 0.1%.

Tesla kicked off “Magnificent Seven” earnings with its biggest quarterly profit in over a year, driving a wave of optimism that set stocks up for a comeback from Wednesday’s sharp losses.

Shares in Tesla surged over 13% in premarket — set to add over $80 billion in market cap — as investors welcomed CEO Elon Musk’s forecast that EV sales could grow 20-30% next year. Amazon (AMZN), Meta (META), and other tech megacaps ticked higher after lagging the previous session.

Elsewhere in corporates, Boeing (BA) shares sagged almost 4% after striking workers rebuffed its pay deal, on the heels of planemaker’s $6 billion quarterly loss. It’s the latest in a string of rough news for stocks on the Dow.

Meanwhile, the 10-year Treasury yield (^TNX) fell back after topping 4.25% on Wednesday amid worries that the Federal Reserve won’t cut interest rates as quickly as anticipated. The yield dropped below 4.2%, losing hold of levels not seen since July.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

LIVE 4 updates

  • Ines Ferré

    Boeing shares poised to open nearly 3% down after union rejects contract offer

    Boeing shares (BA) were poised to open nearly 3% lower after machinist union workers voted on Wednesday against a contract offer and continue the current strike.

    The proposed agreement would’ve included a 35% general wage increase over the span of four years, though without the benefit pension plan the union wanted.

    The strike, which started on September 13 continues to be an ongoing challenge for the struggling plane maker which recently posted a quarterly loss of more than $6 billion.

    Earlier this month the company said it would cut its workforce by 10%, or roughly 17,000 jobs, and delay the first delivery of its 777X jet to 2026.

  • Ines Ferré

    Initial jobless claims decline more than expected

    Initial weekly jobless claims released Thursday morning came in at 227,000, versus surveyed estimates of 242,000, per Bloomberg data.

    The print released by the Department of Labor showed a sharp decline in claims compared to the prior week’s upwardly revised 242,000 amid recent volatility in filings due to Hurricane Helen and Milton.

    Continuing jobless claims rose by 28,000 to 1.897 million.

  • Laura Bratton

    Tesla stock soars

    Tesla (TSLA) stock jumped over 13% premarket Thursday morning, adding tens of billions of dollars in market cap to the Elon Musk-helmed EV company.

    Yahoo Finance’s Pras Subramanian reports that Tesla beat analysts’ expectations on adjusted earnings per share and higher gross margins. Musk said he expects the company’s vehicle deliveries will grow 20% to 30% next year. Still, its revenue missed expectations. Here are the details of its third quarter results compared to Wall Street’s forecasts, according to Bloomberg consensus estimates:

    Read the full story here.

    Tesla stock has had a rocky few months riddled with ups and downs. The stock surged in anticipation of the company’s third-quarter EV deliveries report and robotaxi event, but plunged when those milemarks disappointed. The company missed Wall Street estimates for third-quarter deliveries in early October.

    Wall Street analysts harshly criticized the company’s robotaxi event, saying the company’s self-driving taxi plans were too vague and “light of real numbers and timelines.”

  • Jenny McCall

    Good morning. Here’s what’s happening today.

    Economic data: Initial Jobless & Continuing Claims, (week ending Oct. 19, week ending Oct. 12); S&P Global US Manufacturing & Services PMI (October preliminary); New Home Sales (September); Kansas City Fed Manufacturing Activity (October); Chicago Fed National Activity Index (September).

    Earnings: UPS (UPS), American Airlines (AAL), Southwest (LUV), Dexcom (DXCM), Deckers Outdoor Corporation (DECK), Sketchers (SKX), Coursera (COUR), Dow Inc. (DOW), Honeywell International (HON), Union Pacific Corporation (UNP), Hasbro (HAS), Northrop Grumman Corporation (NOC), Capital One (COF), Beyond, Inc. (BYON)

    Here are some of the biggest stories you may have missed overnight and early this morning:

    Tesla jumps after earnings surprise, upbeat outlook

    Boeing stock falls after workers reject latest labor offer

    American Airlines lifts 2024 profit forecast

    Southwest reaches agreement with activist, ending long battle

    How Musk’s ‘distractions’ could turn into big wins

    IBM stock falls amid slowing spending on non-GenAI projects

    Consumers are better off than in 2019, but they don’t feel that way

    T-Mobile beats estimates for wireless subscriber growth





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *