Stocks rise as GDP growth beats, Tesla slides
US stocks rose on Thursday despite downbeat earnings from Tesla (TSLA) and following a hotter-than-expected US economic growth reading.
Dow Jones Industrial Average (^DJI) rose 0.2% while the S&P 500 (^GSPC) rose 0.4% following the benchmark’s fourth straight record close logged on Wednesday. Stocks in the tech-heavy Nasdaq 100 (^NDX) rose about 0.6%.
An advance estimate of fourth quarter US gross domestic product (GDP) released on Thursday morning showed the economy grew at an annualized pace of 3.3% during the period, much faster than the annualized pace of 2% expected by economists.
Tesla warned of “notably” slower EV production growth in quarterly results that missed on profit, with CEO Elon Musk pointing to the risk that Chinese carmakers will “demolish” rivals in the absence of trade curbs. Shares of the EV maker dropped as much as 11% during trading, further underperforming the other “Magnificent Seven” tech-centered stocks that have driven the S&P 500’s rally.
Results from Intel (INTC) are an after-hours highlight in the flood of reports, with Wall Street on watch for an AI boost to the chipmaker.
On Thursday morning American Airlines (AAL) stock rose after the company issued better-than-expected 2024 guidance. Southwest Airlines (LUV) beat Wall Street expectations for its latest quarter profit.
Alaska Airlines (ALK) said it would incur $150 million in costs stemming from the recent grounding of its Boeing 737 Max 9 fleet following a mid-air door plug incident.
The FAA on Wednesday gave the go-ahead for those 737 Max 9 jets to return to service once airlines complete safety checks. But the authority also told Boeing (BA) to freeze any planned increases in production of the model, spelling disruption for its customers and suppliers and helping drive shares lower.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
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Real estate, tech stocks lead gains
Real Estate , Communication Services and Technology stocks were the biggest leaders during mid-day trading.
Dow Jones Industrial Average (^DJI) was up around 100 points at 12:00 PM Eastern, while the S&P 500 (^GSPC) rose 0.4%. Stocks in the tech-heavy Nasdaq 100 (^NDX) rose about 0.6%.
The gains came after a hotter than expected preliminary GDP print, showing the US economy continues to grow.
Tesla (TSLA) shares, down 11%, were dragging on the Consumer Discretionary (XLY) sector, after the electric vehicle giant warned of “notably” slower EV production growth. The company’s latest quarterly missed on profit.
Real Estate, Communication Services, Technology Stocks lead gains -
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