U.S. Indexes Rebound as Wall Street Reviews Earnings; Tesla Jumps 11% On Outlook

Barry Adams
24 Apr, 2024
New York City

Benchmark indexes on Wall Street were little changed as investors reviewed the latest batch of mixed earnings. 

The S&P 500 index and the Nasdaq Composite hovered near previous closes,  yields on Treasury notes edged slightly lower, and crude oil prices struggled to stay above the flatline. 

Boeing reported a narrower-than-expected loss in the first quarter; Tesla said in a call with investors that second-quarter results are likely to be better than the first quarter; and Texas Instruments projected higher revenue in the second quarter. 

Investors have been on the defensive for the last three weeks amid interest rate uncertainty and strong economic data. 

Investors have dialed down their interest rate cut expectations after recent data on nonfarm payrolls and factory orders, home construction, and retail sales indicated resilient economic conditions. 

 

U.S. indexes and yields

The S&P 500 index increased 0.3% to 5,084.03, and the Nasdaq Composite advanced 0.7% to 15,816,82. 

The yield on 2-year Treasury notes edged lower to 4.95%, 10-year Treasury notes inched down to 4.63%, and 30-year Treasury bonds edged lower to 4.73%.

WTI crude oil decreased $0.44 to $83.02 a barrel, and natural gas prices decreased 1 cent to $1.80 a thermal unit.

Gold decreased by $8.23 to $2,315.46 an ounce, and silver fell 16 cents to $26.11. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.82.

 

U.S. Stock Movers

Tesla jumped 12.4% to $162.25 after the electric vehicle maker reported a decline in sales and earnings, but the company's outlook supported market expectations. 

Revenue in the first quarter declined 9% to $21.3 billion, net income dropped 55% to $1.13 billion from $2.51 billion, and diluted earnings per share fell to 34 cents from 73 cents a year ago. 

In a statement released to investors, Tesla said the volume growth rate in 2024 "may be notably lower than the growth rate achieved in 2023."

The company said it plans to launch "new vehicles, including more affordable models," manufactured on the same production lines without needing additional investment. 

The company aims to achieve a 50% increase in annual vehicle production before investing in new plants and equipment. 

Boeing Co. increased 3.3% to $174.60 after the aviation company reported a narrower-than-expected loss and a smaller-than-expected cash outflow in the first quarter. 

Revenue in the first quarter declined 8% to $16.5 billion, net loss shrank to $355 million from $425 million, and diluted loss per share eased to 56 cents from 69 cents a year ago. 

Visa Inc. rose 2.4% to $280.80 after the payment processor reported stronger-than-expected quarterly results. 

Texas Instruments jumped 6.7% to $176.69 after the advanced semiconductor company reported better-than-expected first-quarter revenue. 

Revenue declined 16% to $3.66 billion from $4.4 billion, net income fell 35% to $1.1 billion from $1.7 billion, and diluted earnings per share dropped to $1.20 from $1.85 a year ago. 

The company also estimated second-quarter revenue in the range of $3.65 billion to $3.95 billion and earnings per share between $1.05 and $1.25.