NEW YORK (AP) — Wall Street had a mixed close Thursday as Tesla soared on one of its best days in history while IBM fell to its worst level in six months.
The S&P 500 rose 0.2%, ending a three-day losing streak for the first time since early September. Stocks fluctuated between declines and rises throughout the day, with an almost even split between advancers and decliners.
The Dow Jones Industrial Average fell 140 points, or 0.3%, and the Nasdaq Composite rose 0.8%.
Tesla rose 21.9% to lead the market after the electric car maker reported profits for its latest quarter that beat analysts’ expectations. Optimistic CEO Elon Musk also predicted that next year’s sales would grow 20% to 30%, although the company’s most recent quarter’s sales fell short of analysts’ expectations. It was the best day for Tesla stock since 2013.
UPS similarly posted a 5.3% rise in profits, beating analysts’ expectations. A package delivery company’s financials can provide clues to the strength of the economy, given the number of different types of customers it serves and its revenue being slightly above expectations. be.
ServiceNow, which provides a platform that helps companies automate and connect processes, was also one of the strongest forces pushing the S&P 500 higher. The S&P 500 rose 5.4% as the company delivered better-than-expected profits and revenue due to customer interest in implementing artificial intelligence technology.
Those gains helped offset a 6.2% decline in IBM, which reported earnings for the latest quarter that were slightly below analysts’ expectations. That was the biggest reason why the Dow lagged behind other indexes.
Boeing was also weighed down, falling 1.2% after its machinists voted to continue a strike that has disrupted aircraft production. More than 60% of union members who voted against the contract opposed it, and union members remained on the picket line for six weeks after the strike began.
Union Pacific fell 4.4% after the railroad reported slightly lower than expected profits and revenue.
Overall, the S&P 500 rose 12.44 points to 5,809.86. The Dow Jones Industrial Average fell 140.59 points to $42,374.36, and the Nasdaq Composite rose $138.83 to $18,415.49.
Stocks have fallen sharply this week after the S&P 500 and Dow set records last weekend. They have been hurt by rising U.S. Treasury yields in the bond market, which could make investors less willing to pay high prices for stocks. Critics had already said beforehand that the stock looked too expensive, given that the stock is rising faster than corporate profits.
Yields rose as reports continued to show that the U.S. economy remained stronger than expected. That’s good news for Wall Street, as it raises hopes that the economy can emerge from the worst inflation in generations without suffering the painful recession that many feared was inevitable.
story continues
But at the same time, traders are chipping away at their expectations for how much the Fed will cut interest rates, as it is as focused on keeping the economy strong as it is on lowering inflation. It’s out of necessity. U.S. Treasury yields have also regained some of their earlier declines as confidence fades as to how much the Fed will ultimately cut overnight rates.
Thursday’s report on jobless claims showed mixed job market conditions. The report said fewer workers applied for unemployment benefits last week, which could indicate relatively few layoffs. But it also said the total number of people receiving benefits had reached the highest level in nearly three years.
Carl Weinberg and Rubera Farooqi of High Frequency Economics say that overall, the numbers point to a slowdown in the economy, “but these data also include a steep decline in employment and a spike in layoffs. There are no signs.”
U.S. Treasury yields, which had fallen overnight, pared their decline before falling after the release of the unemployment claims report. The yield on the 10-year U.S. Treasury note fell to 4.20% from 4.25% late Wednesday. This is still well above the 4.08% level late last week.
A separate preliminary report said growth in U.S. business activity may have accelerated slightly last month as strength in service industry companies continued to offset weakness in manufacturing. S&P Global’s report also shows a recovery in confidence, with businesses looking for greater stability and certainty after the next presidential election.
Meanwhile, a third report said new home sales were stronger than economists expected last month.
In overseas stock markets, indexes rose slightly in Europe after being mixed in Asia.
___
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
