Register now to get free unlimited access to Reuters.com
(Reuters) – The Nasdaq index rose on Thursday, boosted by gains in electric car maker Tesla with better-than-expected quarterly results, helping to offset a decline in telecom and energy shares.
The S&P 500 added 0.6% after an earlier decline, and the Dow Jones Industrial Average held steady in the early afternoon.
Tesla (TSLA.O) It rose 10.1%, while AT&T Inc (Tennessee) Telecom shares fell after the wireless carrier cut its cash flow forecast, saying some subscribers were delaying bill payments. Energy stocks fell on the back of weak crude oil prices. Read more
Register now to get free unlimited access to Reuters.com
Tesla’s profits benefited from higher prices for its cars, balancing production challenges. Strong reports from the automaker and streaming giant Netflix (NFLX.O) The huge growth stocks that came under pressure were boosted by higher interest rates.
“The earnings picture may have been a little better than investors feared. We investors believe that … and there are probably some valuation opportunities,” said J. Bryant Evans, investment advisor and portfolio manager at Cozad Asset Management.
Seven of the 11 major S&P 500 sectors are in positive territory, with consumer appreciation (.SPLRCD)Healthcare (.SPXHC) and information technology(.SPLRCT) Spread the biggest gains by adding more than 1% each.
Falling oil prices hit the S&P 500 energy sector (.SPNY)Which lost 2.8% to lead the declines.
All eyes are on the Federal Reserve meeting next week where policy makers are expected to raise interest rates by 75 basis points.
Rising inflation has also led the European Central Bank to recently join its global peers in a cycle of raising interest rates with a massive 50bp increase. Read more
Next week’s Fed rate decision will be followed by US Q2 GDP data, which is likely to be negative again.
According to a common rule of thumb, two quarters of negative GDP growth means the United States is in a recession. Read more
In the latest indications of a slowing US economy, the number of Americans registered for unemployment benefits rose to an eight-month high and a closely watched gauge of factory activity declined this month. Read more
“Consumers are just starting to respond with less money in their pockets, either from a lower labor market in general or from higher interest rates and inflation,” Evans added.
“Part of the strong earnings reflect the earlier strength of consumers, while a lot of this broader decline we’ve seen.. over the past few months has slowed down the broader economy that will eventually affect consumers.”
At 2:24 p.m. ET, the Dow Jones Industrial Average (.DJI) The S&P 500 rose 25.94 points, or 0.08%, to 31,900.78 (.SPX) It rose 24.59 points, or 0.62%, to 3,984.49 points, and the Nasdaq Composite (nineteenth) It added 127.19 points, or 1.07%, to 12,024.84 points.
Advance issues outnumbered declining issues on the New York Stock Exchange by 1.15 to 1; On the Nasdaq, the 1.20 to 1 ratio favored heights.
The S&P 500 hit a new 52-week high and 29 new low; The Nasdaq recorded 17 new highs and 38 new lows.
Register now to get free unlimited access to Reuters.com
(covering Echo Wang) in New York. Additional reporting by Shreyachi Sanyal and Anirudha Ghosh in Bengaluru. Editing by Aaron Coeur and Aurora Ellis
Our criteria: Thomson Reuters Trust Principles.
More Stories
JPMorgan expects the Fed to cut its benchmark interest rate by 100 basis points this year
NVDA Shares Drop After Earnings Beat Estimates
Shares of AI chip giant Nvidia fall despite record $30 billion in sales