NEW YORK – Tesla shares surged on Oct 24 following strong earnings, boosting the Nasdaq, while the Dow fell on earnings disappointments and the prolongation of the Boeing strike.
Mr Elon Musk’s electric vehicle company piled on nearly 22 per cent after reporting higher earnings, ending a streak of disappointing results.
Deutsche Bank called Tesla’s profit margins “impressive,” adding that Mr Musk’s commentary on 2025 sales was also encouraging.
Tesla helped lift the Nasdaq to 18,415.49, up 0.8 per cent.
The S&P 500 added 0.2 per cent at 5,809.86, while the Dow Jones Industrial Average dropped 0.3 per cent to 42,374.36.
Analysts also pointed to a retreat in US Treasury yields as supportive of equities, along with benign US jobless claim data that suggested the labour market remains solid.
Among individual companies, IBM sank 6.2 per cent as it reported a US$330 million (S$435 million) quarterly loss on lower than expected revenues. However, the tech company said it is well positioned given major investments in artificial intelligence and other in-demand technology.
Boeing dropped 1.2 per cent after a machinist union voted by almost two-thirds to reject the company’s latest contract, extending a nearly six-week strike. Analysts said the vote further clouds the company’s turnaround prospects under new CEO Kelly Ortberg.
Among other companies reporting results, UPS rose 5.3 per cent, Honeywell lost 5.1 per cent and Whirlpool jumped 11.2 per cent. AFP