Wall St rises on strong earnings from Tesla, airlines; Dow up 250 pts
The world's most valuable automaker jumped 9% after its results beat Wall Street expectations as higher prices helped it overcome supply-chain chaos and rising costs.
- Apr 21, 2022,
- Updated Apr 21, 2022 9:30 PM IST
U.S. stocks rose on Thursday as a slew of upbeat earnings from companies including Tesla outweighed concerns about aggressive interest rates hikes that have kept bond yields elevated.
The world's most valuable automaker jumped 9% after its results beat Wall Street expectations as higher prices helped it overcome supply-chain chaos and rising costs.
United Airlines Holdings Inc and American Airlines Group Inc surged 11.8% and 7.7%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. Read full storyRead full story
The wider S&P 1500 Airlines Index jumped 6.3% to its highest level since mid-November.
The gains follow a sharp decline in U.S. stocks on Wednesday after Netflix Inc NFLX.O reported subscriber loss for the first time in a decade, triggering a selloff in technology and growth stocks.
"Earnings have been a mixed big so far, obviously you saw the disappointment with Netflix. We're probably going to go back and forth on a day-to-day basis," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
"People are still looking at the bond market and the Fed policy over the longer term, it's not just earnings."
Investors will focus on Federal Reserve Chair Jerome Powell's speech later in the day for clues on monetary policy tightening plans, with many expecting the U.S. central bank to raise rates by 50 basis points to control soaring inflation.
U.S. Treasury yields rose, with two-year yields hitting their highest in three years. US/
Meanwhile, data showed the number of Americans filing new claims for unemployment benefits fell moderately last week, suggesting that April was another month of strong job growth. Read full story
At 10:32 a.m. ET, the Dow Jones Industrial Average .DJI was up 252.44 points, or 0.72%, at 35,413.23, the S&P 500 .SPX was up 39.61 points, or 0.89%, at 4,499.06, and the Nasdaq Composite .IXIC was up 154.41 points, or 1.15%, at 13,607.47.
Growth-oriented sectors like communication services .SPLRCL, consumer discretionary .SPLRCD and technology .SPLRCT rose between 0.4% and 2% in early trading, recovering from Wednesday's selloff.
However, Neflix NFLX.O fell 4.7%, adding to 35% plunge in the previous session, as billionaire investor William Ackman liquidated a $1.1 billion bet on the streaming giant after its results. Read full story
Overall, analysts expect S&P 500 earnings growth of 6.5% in the first quarter as of Wednesday, compared with the 32.1% rise in the fourth quarter, according to Refinitiv data.
Advancing issues outnumbered decliners by a 1.60-to-1 ratio on the NYSE and a 1.19-to-1 ratio on the Nasdaq.
The S&P index recorded 65 new 52-week highs and six new lows, while the Nasdaq recorded 56 new highs and 129 new lows.
U.S. stocks rose on Thursday as a slew of upbeat earnings from companies including Tesla outweighed concerns about aggressive interest rates hikes that have kept bond yields elevated.
The world's most valuable automaker jumped 9% after its results beat Wall Street expectations as higher prices helped it overcome supply-chain chaos and rising costs.
United Airlines Holdings Inc and American Airlines Group Inc surged 11.8% and 7.7%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. Read full storyRead full story
The wider S&P 1500 Airlines Index jumped 6.3% to its highest level since mid-November.
The gains follow a sharp decline in U.S. stocks on Wednesday after Netflix Inc NFLX.O reported subscriber loss for the first time in a decade, triggering a selloff in technology and growth stocks.
"Earnings have been a mixed big so far, obviously you saw the disappointment with Netflix. We're probably going to go back and forth on a day-to-day basis," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
"People are still looking at the bond market and the Fed policy over the longer term, it's not just earnings."
Investors will focus on Federal Reserve Chair Jerome Powell's speech later in the day for clues on monetary policy tightening plans, with many expecting the U.S. central bank to raise rates by 50 basis points to control soaring inflation.
U.S. Treasury yields rose, with two-year yields hitting their highest in three years. US/
Meanwhile, data showed the number of Americans filing new claims for unemployment benefits fell moderately last week, suggesting that April was another month of strong job growth. Read full story
At 10:32 a.m. ET, the Dow Jones Industrial Average .DJI was up 252.44 points, or 0.72%, at 35,413.23, the S&P 500 .SPX was up 39.61 points, or 0.89%, at 4,499.06, and the Nasdaq Composite .IXIC was up 154.41 points, or 1.15%, at 13,607.47.
Growth-oriented sectors like communication services .SPLRCL, consumer discretionary .SPLRCD and technology .SPLRCT rose between 0.4% and 2% in early trading, recovering from Wednesday's selloff.
However, Neflix NFLX.O fell 4.7%, adding to 35% plunge in the previous session, as billionaire investor William Ackman liquidated a $1.1 billion bet on the streaming giant after its results. Read full story
Overall, analysts expect S&P 500 earnings growth of 6.5% in the first quarter as of Wednesday, compared with the 32.1% rise in the fourth quarter, according to Refinitiv data.
Advancing issues outnumbered decliners by a 1.60-to-1 ratio on the NYSE and a 1.19-to-1 ratio on the Nasdaq.
The S&P index recorded 65 new 52-week highs and six new lows, while the Nasdaq recorded 56 new highs and 129 new lows.