Wall Street was shut down by strong Tesla earnings

Wall Street was shut down by strong Tesla earnings
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  • Tesla shares rose as expected on earnings
  • AT&T drags down the communications services sector
  • Amazon, Apple ahead in revenue on July 28
  • Energy stocks lead sector declines
  • Indexes rose: Dow 0.51%, S&P 500 0.99%, Nasdaq 1.36%

July 21 (Reuters) – Wall Street’s major indexes were boosted by a late-afternoon rally on Thursday and gains in heavyweight growth stocks including Tesla.

The tech-heavy Nasdaq added 1.4% to lead gains while the S&P 500 closed at its highest level since June 9. The Dow Jones Industrial Average rose 0.5%.

Tesla (TSLA.O)Shares rose 9.8% after the electric vehicle maker posted better-than-expected quarterly results late Wednesday. Gains helped offset a slide in telecom and energy shares, while AT&T Inc (TN) Telecom shares have been sent lower after the wireless carrier cut its cash flow forecast saying some customers are delaying bill payments. Energy stocks fell on weak crude prices. Read more

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Investment Advisor and Portfolio Manager at Cozad Asset Management J. “The earnings picture may have been a little better than investors had feared,” said Bryant Evans. And maybe there’s some valuation opportunity there.”

amazon (AMZN.O) and apples (AAPL.O) Each rose 1.5%, with both companies set to report their earnings on July 28.

Dow Jones Industrial Average (.DJI) The S&P 500 rose 162.06 points, or 0.51%, to 32,036.9. (.SPX) The Nasdaq Composite rose 39.05 points, or 0.99%, to 3,998.95. (.IXIC) It added 161.96 points or 1.36% to 12,059.61.

Nine of the S&P 500’s 11 major sectors closed in positive territory, with consumer discretionary (.SPLRCD)Healthcare (.SPXHC) and information technology (.SPLRCT) Posting the biggest gains each adding up to more than 1%.

Falling oil prices hurt the S&P 500 energy sector (.SPNY)which declined by 1.7% leading declines across all sectors.

Market participants anxiously await the US Federal Reserve’s meeting next week where policymakers are expected to raise interest rates by 75 basis points to curb runaway inflation.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, June 30, 2022. REUTERS/Brendan McDermid/File photo

Joining its global peers, the European Central Bank raised rates by 50 basis points to control inflation in the first rate hike since 2011. Read more

Next week’s Fed rate decision will be followed by key second-quarter US gross domestic product data, which is likely to turn negative again.

As a rule of thumb, two quarters of negative GDP growth means the United States is in recession. Read more

The number of Americans filing for unemployment benefits hit an eight-month high, with the latest data further scaring recession fans. Read more

“Consumers are just starting to react to less money in their pockets, either from a shrinking overall job market or rising interest rates and inflation,” Evans added.

“The strong earnings part reflects the past strength of consumers, whereas a lot of this broad decline that we’ve seen . . . over the last few months has been priced into the slowdown in the broader economy that will ultimately affect consumers.”

Volume on US exchanges was 10.58 billion shares, compared to the full-session average of 11.63 billion over the past 20 trading days.

Advance issues outnumbered declines by a 1.77-to-1 ratio on the NYSE; On the Nasdaq, a 1.52-to-1 ratio favors the advancers.

S&P 500 posts 1 new 52-week high and 29 new lows; The Nasdaq Composite recorded 23 new highs and 46 new lows.

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Reporting by Echo Wang in New York; Additional reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Edited by Arun Koir and Arora Ellis

Our values: Thomson Reuters Trust Policy.

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