US stocks rose on Thursday despite downbeat earnings from Tesla (TSLA) and following a hotter-than-expected US economic growth reading.
Dow Jones Industrial Average (^DJI) rose 0.6% while the S&P 500 (^GSPC) rose 0.5% following the benchmark’s fourth straight record close logged on Wednesday. Stocks in the tech-heavy Nasdaq Composite (^IXIC) rose about 0.2%. The S&P 500 set another closing record high finishing at 4,894.16.
An advance estimate of fourth quarter US gross domestic product (GDP) released on Thursday morning showed the economy grew at an annualized pace of 3.3% during the period, much faster than the annualized pace of 2% expected by economists.
Tesla warned of “notably” slower EV production growth in quarterly results that missed on profit, with CEO Elon Musk pointing to the risk that Chinese carmakers will “demolish” rivals in the absence of trade curbs. Shares of the EV maker dropped 12%, further underperforming the other “Magnificent Seven” tech-centered stocks that have driven the S&P 500’s rally.
On Thursday morning, American Airlines (AAL) stock rose more than 10% after the company issued better-than-expected 2024 guidance. Southwest Airlines (LUV) beat Wall Street expectations for its latest quarter profit.
The FAA on Wednesday gave the go-ahead for grounded 737 Max 9 jets to return to service once airlines complete safety checks. But the authority also told Boeing (BA) to freeze any planned increases in production of the model, spelling disruption for its customers and suppliers and helping drive shares lower.
Meanwhile, Intel (INTC) stock fell as much as 6% in after-hours trading on Thursday after the company’s 2024 outlook came in weaker than Wall Street’s estimates.
