Economy

Stocks rise as GDP growth outpaces, Tesla declines

January 25, 2024
Izer

US stocks rose on Thursday despite downbeat earnings from Tesla Inc (TSLA) and after a hotter-than-expected reading of US economic growth.

The Dow Jones Industrial Average (^DJI) opened 0.2% higher, while the S&P 500 (^GSPC) rose 0.4% after the index's fourth straight record close on Wednesday. Shares in the tech-heavy Nasdaq 100 (^NDX) rose about 0.5%.

that Advance estimate of US GDP for the fourth quarter Data released Thursday morning showed that the economy grew at an annual rate of 3.3%. During this period, it is much faster than the 2% annual pace that economists had expected.

Tesla warned that growth in electric vehicle production will slow “significantly” in earnings-losing quarterly results, with CEO Elon Musk citing the risk of Chinese automakers “demolishing” their rivals in the absence of trade restrictions. Shares of the electric car maker fell 8% in premarket trading, underperforming other tech-focused Magnificent Seven stocks that led the S&P 500's rise.

Intel ( INTC ) results are one of the after-hours highlights in a torrent of reports, with Wall Street eyeing the chipmaker's artificial intelligence boost.

On Thursday morning, American Airlines (AAL) stock rose after the company issued better-than-expected guidance for 2024. Southwest Airlines (LUV) shares also rose after beating the carrier's latest quarterly results.

Alaska Airlines (ALK) said it will incur $150 million in costs stemming from the recent grounding of its fleet of Boeing 737 MAX 9 aircraft after a mid-air door seal incident.

The Federal Aviation Administration on Wednesday gave the green light for the 737 Max 9 jets to return to service once airlines complete safety inspections. But the body also asked Boeing (BA) to freeze any planned increases in production of the model, disrupting the dictate to its customers and suppliers and helping shares fall.

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He lives2 updates

  • US stocks rise amid hotter-than-expected US economic growth print

    Stocks opened higher on Thursday after a preliminary reading on US economic growth came in hotter than expected.

    The Dow Jones Industrial Average (^DJI) rose 0.3%, while the S&P 500 (^GSPC) opened 0.4% higher after the index's fourth straight record close on Wednesday. The Nasdaq Composite (^IXIC) rose 0.4%.

    that Advance estimate of US GDP for the fourth quarter It showed the economy grew at an annual rate of 3.3% during the period, much hotter than the 2% annual pace that economists had expected.

    Shares rose despite a downbeat earnings announcement from Tesla (TSLA) on Wednesday. The electric car giant missed profits in the latest quarter and warned that production growth would slow “significantly.” Tesla shares were down about 7% Thursday morning.

  • The US economy grew at a rate of 3.3% in the fourth quarter, beating estimates

    The US economy continues to impress.

    First look at fourth-quarter GDP growth Released ThursdayIt showed that the economy grew at an annual pace of 3.3% in the last three months of 2023. Economists had expected growth to come at a rate of 2%, according to Bloomberg data.

    With this reading, the preliminary estimate of cumulative GDP growth for 2023 shows that the economy grew by 2.5% last year, an acceleration from growth of 1.9% in 2022. The economy grew in all four quarters of the year and has now expanded for six quarters in a row. .

    The fourth-quarter growth was driven by “increases in consumer spending, exports, state and local government spending, nonresidential fixed investment, federal government spending, private inventory investment, and residential fixed investment,” the BEA said in its statement.

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