U.S. stocks rose on Friday morning as Treasury yields fell, but markets remained on track for weekly losses as uncertainty over the Fed’s next move overshadowed earnings season in full swing. was.
The S&P 500 (^GSPC) rose 0.8% after the benchmark ended a three-day losing streak. The Dow Jones Industrial Average (^DJI) rose 0.4%, and the tech-heavy Nasdaq Composite Index (^IXIC) rose 1.3%.
Stocks have rebounded somewhat as falling U.S. bond yields have eased some of the recent pressure on risk appetite. The benchmark 10-year Treasury yield (^TNX) fell to around 4.19%, retreating from a three-month high of 4.25% hit midweek.
But the Dow and S&P 500 still appear to be bracing for a weak few weeks after taking a big hit from that surge amid concerns that the Federal Reserve will slow the pace of interest rate cuts. is.
Read more: How Fed Rate Cuts Affect Bank Accounts, CDs, Loans, and Credit Cards
Investors are now starting to prepare for the potential for looming disruption with next Friday’s November US jobs report and the close presidential election a week later.
Meanwhile, as the week draws to a close, the activity in earnings announcements has slowed down, with Colgate-Palmolive (CL) taking center stage.
At the same time, Tesla’s (TSLA) surprise earnings set up five other “Magnificent Seven” mega-cap stocks to report next week: Google parent Alphabet (GOOG, GOOGL), Meta (META ), Microsoft (MSFT), Apple (AAPL), Amazon (AMZN).
Elsewhere in the corporate world, Capri (CPRI) stock tumbled after a judge blocked a merger between Michael Kors’ parent company and Coach owner Tapestry (TPR).
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Tesla is still a car company – and for now, that’s fine.
What became clearer after Tesla’s latest earnings report is that for now, Tesla is primarily a car company, and the more successful the car company is, the more investors are willing to put money towards its transformation. Yahoo Finance’s Julie Hyman writes.
The numbers help tell the story. Tesla’s car sales were $20.02 billion last quarter, accounting for 79% of total sales. Automotive services accounted for 11% and energy generation and storage approximately 9%.
What really encouraged investors last quarter was profitability, which was 17.1% in the auto sector after regulatory deductions. Added to this is Musk’s prediction that deliveries will increase this year and that next year’s growth will be “around 20% to 30%,” sending stocks soaring 22%, the lowest on a single day in May 2013. It was the largest increase since then.
Also, over the past year, Tesla stock has returned to a healthy state after a rough road. The stock price fell 11% in the two weeks following the company’s robotaxi event.
Learn more about Tesla’s efforts to increase profitability and reduce vehicle manufacturing costs.
Ending a tough week with rising stocks
U.S. stocks rose Friday morning as Treasury yields fell and uncertainty over the Federal Reserve’s next move cast a shadow over earnings season, which is in full swing.
The S&P 500 (^GSPC) rose about 0.5% after the benchmark ended a three-day losing streak. The Dow Jones Industrial Average (^DJI) rose 0.4%, and the tech-heavy Nasdaq Composite Index (^IXIC) rose about 0.6%.
Stocks have rebounded somewhat as falling U.S. bond yields have eased some of the recent pressure on risk appetite. The benchmark 10-year Treasury yield (^TNX) fell to around 4.18%, retreating from a three-month high of 4.25% hit midweek.
The S&P and Dow are on track to post losses this week.
good morning. Here’s what happened today:
Economic indicators: Durable goods orders (preliminary figures for September). University of Michigan Consumer Sentiment, (October). Kansas City Fed Service Activities (October).
Revenue: New York Community Bancorp (NYCB), Colgate Palmolive (CL), Booz Allen Hamilton (BAH), Aon (AON), WisdomTree (WT), Piper Sandler (PIPR), Centene Corporation (CNC), Newell Brands (NWL) )).
Here are some of the biggest stories you may have missed overnight and early this morning.
Tesla is still a car company – and for now, that’s fine.
Capri share price craters as $8.5 billion Tapestry deal blocked
Mercedes-Benz steps up cost-cutting efforts as China’s economic slowdown puts pressure on profits
Apple’s iPhone sales in China decline in third quarter, Huawei’s share soars
Chinese robotaxi startup WeRide receives $4.21 billion valuation in U.S. IPO
BofA’s Hartnett says bets on gold are rising ahead of US presidential election
Amazon Prime introduces new benefits to save money on gas
