Stocks ended mixed Wednesday, as investors waited for more quarterly updates amid concerns about interest rates.
The Dow Jones Industrial Average lost 42 points, or 0.11%, to finish at 38,460.92, while the S&P 500 was essentially flat, up to 0.02% to 5,071.63, and the tech-heavy Nasdaq gained 0.10% to 15,712.75.
Tesla rose 12.1% to finish at $162.13 after Elon Musk, the electric vehicle maker's CEO, delivered a shareholder friendly conference call that offset the impact of weaker-than-expected first quarter earnings and narrowing profit margins.
Updated at 1:09 PM EDT
Edging lower
Stocks are slipping into the red heading into the afternoon session, with the S&P 500 down 13 points, or 0.25%, and the Nasdaq off 17 points, or 0.11%.
A solid auction of $70 billion in 5-year notes, the largest sale on record, held Treasury yields in check as foreign investors took down around 65.7% of the deal and investors placed bids worth more than $167 billion.
🇺🇸 United States 5-Year Note Auction $USD
— PiQ (@PiQSuite) April 24, 2024
Actual: 4.591%
Previous: 4.235%
Updated at 11:06 AM EDT
TikTok Ban?
President Joe Biden signed a bill Wednesday that forces ByteDance, the China-based owned of social media giant TikTok to sell its U.S. operations for face an App store ban in one of its key markets.
The bill, which cleared the House of Representatives by a vote of 360-58, and passed the Senate with 79 votes in favor and 18 against, gives ByteDance a year to divest its U.S. division, which boasts around 170 million daily users of the short-video sharing app.
Our CEO Shou Chew's response to the TikTok ban: pic.twitter.com/l0RAPJMobK
— TikTok Policy (@TikTokPolicy) April 24, 2024
Updated at 9:55 AM EDT
Mixed open
The S&P 500 added 15 points, or 0.33%, in the opening minutes of trading, with Tesla topping the early list of gainers, while the Dow fell 15 points amid pullbacks for Intel (INTC) , Nike (NKE) and Merck (MRK) .
The Nasdaq, meanwhile, was marked 118 points higher, thanks in part to Tesla's 12.6% gain, the best post-earnings reaction in four years, and a 1.11% bump for Meta ahead of its first quarter earnings later this evening.
S&P 500 Opening Bell Heatmap (April 24, 2024)$SPY +0.12% 🟩$QQQ +0.75% 🟩$DJI -0.14% 🟥$IWM -0.45% 🟥 pic.twitter.com/kxI05x9heO
— Wall St Engine (@wallstengine) April 24, 2024
Updated at 9:03 AM EDT
Turbo Tesla
Tesla shares are set for the strongest opening bell gain in more than a year after Elon Musk delivered a shareholder friendly conference call that offset the impact of weaker-than-expected first quarter earnings and narrowing profit margins.
I think we'll have higher sales this year than last year," Musk told investors last night, adding that he'll bring forward the launch of lower-priced EVs over the coming year.
Tesla share were marked 10.9% higher in pre-market trading to indicate an opening bell price of $160.34 each
Related: Analysts scramble to reset Tesla price targets as stock soars after earnings
Updated at 8:37 AM EDT
Boeing bounce
Boeing shares are set for a solid opening bell gain after posting a narrower-than-expected first quarter loss and noting "predictable, stable and efficient cycle times" in its troubled 737 Max program.
Outgoing CEO Dave Calhoun, who steps down later this year, noted that while "lower deliveries can be difficult for our customers and for our financials ... safety and quality must and will come above all else."
Boeing shares were marked 3.5% higher in premarket trading immediately following the earnings release to indicate an opening bell price of $175.71. Such a move would trim the stock's year-to-date decline to around 32.6%
Related: Boeing shares leap on narrower Q1 loss, but 737 Max recovery will take time
Check back for updates throughout the trading day
Stocks powered higher on Tuesday, with the S&P 500 gaining 1.2% into the close of the session, as a softer-than-expected reading for U.S. business activity pulled Treasury yields lower and a record auction of 2-year notes drew solid demand from foreign investors.
S&P Global's Composite PMI reading fell to the lowest level in four months in April, with the survey's reading of manufacturing activity slipping into contraction. Alongside the $69 billion 2-year auction, which attracted around $185 billion in overall bids, Treasury yields retreated firmly.
A solid set of earnings from GE Aerospace (GE) , United Parcel Service (UPS) and PepsiCo (PEP) , all of which raised or reiterated their full-year profit forecasts, added to the bullish tone, which was cemented by Visa (V) and Tesla (TSLA) after the closing bell.
Tesla, in fact, is set to open 12.1% higher after vowing to stick to plans for a low-cost car model, while quickening its efforts to expand in robotics and autonomous driving technologies.
Elon Musk's shareholder-friendly conference call also assuaged concerns that the world's second-richest man might be looking elsewhere to develop some of his broader AI ambitions.
That said, Wall Street is looking at a muted open Wednesday, with futures contacts tired to the S&P 500 indicating a 7 point gain ahead of earnings from Boeing (BA) before the bell and Meta Platforms (META) , IBM (IBM) and Ford Motor (F) after the close of trading.
AT&T (T) shares slipped 2.1% after the telecoms giant posted weaker-than-expected first-quarter revenues and reiterated its full-year profit forecast.
Related: Analyst issues stark warning on Big Tech stocks ahead of earnings
Futures linked to the Dow Jones Industrial Average, meanwhile, suggest a 33 point dip while Tesla's gains are likely to drive the Nasdaq to a 97 point gain.
In the bond market, benchmark 2-year notes were marked at 4.946% while 10-year notes were pegged at 4.644% ahead of a $70 billion auction of 5-year notes later in the session. Traders also braced for tomorrow's GDP data and the key PCE inflation report expected on April 26.
More Wall Street Analysts:
- Analyst unveils new Nike price target ahead of big summer for sports
- Analysts weigh in on Google-parent Alphabet’s stock after cloud event
- Analysts revamp Disney stock price target after proxy fight
Overseas, Europe's Stoxx 600 was marked 0.17% higher in Frankfurt, with Britain's FTSE 1200 rising 0.57% in London after PMI data from both regions topped analysts' forecasts and were set against dovish comments from central bank officials.
Overnight in Asia, the yen tested the 155 level against the U.S. dollar once again, with no support as yet from government officials, helping the Nikkei 225 close 2.42% higher in Tokyo.
The regionwide MSCI ex-Japan index, meanwhile, was marked 1.65% higher into the close of trading following last night's rally on Wall Street.
Related: Veteran fund manager picks favorite stocks for 2024
