US benchmark equity averages were mixed on Thursday, but S&P 500 index rose slightly led by gains in Tesla and others.
At the time of writing, the S&P 500 index was slightly higher by 0.1%, while the Nasdaq Composite was up 0.6%. However, the Dow Jones Industrial Average fell 0.6% from the previous close.
According to CNBC, more than 32% of the S&P 500 has reported third-quarter numbers thus far. Of those companies, 76% have beaten analyst expectations, according to FactSet.
Stocks were coming off steep losses from Wednesday’s session. Dow Jones slipped more than 400 points on Wednesday, while S&P 500 and the Nasdaq Composite shed 1% and 1.6% respectively.
Meanwhile, Treasury yields fell on Thursday, bringing some relief to stocks. Yields rose sharply on Wednesday, which led to heavy losses for the benchmark equity averages.
Rob Haworth, senior investment strategist at US Bank Asset Management told CNBC:
The pressure on the market has been from the rate side. That’s really what has dampened equity market enthusiasm, and you haven’t had big enough earnings news yet to drive the market to a new high…we’re also not seeing as broad a momentum as we were seeing.
Tesla jumps after positive results
Shares of Tesla jumped nearly 20% after bearing analysts’ expectations of its third quarter earnings results.
The electric vehicle maker said it expects 20-30% growth in sales next year, surprising investors.
Robust earnings were fueled by improved margins and an improved outlook for deliveries, the company said.
The company’s attempts to diversify beyond its core automobile business, with forays into robotaxis and artificial intelligence, had also largely underwhelmed earlier in October, according to a Reuters report.
India outperforming emerging market peers: IMF
The International Monetary Fund said on Thursday that India is the strongest growing major emerging market in the world. The IMF expects growth to continue in the coming years.
The IMF further said that India has benefited from cyclical growth, according to CNBC. The fund estimates that India’s economy is expected to grow 7% this year and 6.5% in 2025.
“There is scope for even higher potential with more structure reforms, particular labor market reforms, some fiscal reforms and maybe an increased infrastructure push,” IMF Asia and Pacific department director Krishna Srinivasan was quoted as saying by CNBC.
United Parcel Service surges 5%
Shares of United Parcel Service surged more than 5% on Thursday on the heels of the company’s third quarter earnings and revenue beat.
The shipping and logistics company’s adjusted earnings increased by 12.1% year-over-year to $1.76 per share, above analysts’ expectations of $1.63 per share, according to Tipranks.com.
Meanwhile, the stock of Lam Research rose more than 6% after the semiconductor equipment maker’s fiscal first quarter figures beat expectations.
Boeing shares fall after workers reject latest deal
Shares of Boeing continued their fall on Thursday, dropping nearly 2% after workers on strike rejected the company’s latest contract offer.
Some 64% of the aeroplane maker’s US West Coast factory workers rejected the contract offer late on Wednesday.
Boeing’s leading suppliers were also weighed down by the latest development.
Shares of Spirit AeroSystems lost 4% on Thursday.
Jobless claims fall
On the other hand, the number of people filing for unemployment claims in the US for the first time last week unexpectedly fell, dropping by 15,000.
The latest figure indicates that the US economy remained resilient ahead of the Federal Reserve’s policy meeting in November.
Investors will also keep a watch on the political situation in the US.
The Wall Street Journal poll on Wednesday put former President Donald Trump ahead of Vice President Kamala Harris.
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