Wall Street was a mixed bag on Thursday as was the day's trading, which was strewn with vivid contrasts in stock performance. The S&P 500 bucked its losing streak into three days—a string that hasn't occurred since early September—to advance 0.2% on the Dow Jones Industrial Average, however, lost 0.3% or 140 points. Nasdaq composite was the major bright spot, advancing 0.8%.
The biggest contributor was Tesla, whose shares jumped a robust 21.9%. That came after the electric vehicle maker reported profits for the last quarter that were higher than expected. In that context, Chief Executive Elon Musk said he sees future prospects - sales for next year likely to rise between 20% and 30%. Yet here's a catch: Tesla's revenue for the quarter missed analysts' estimates. However, it was Tesla's strongest stock market trading day since 2013, thus proving, once again, that not only is the automotive sector volatile but also the technology market sectors.
In other major news, positive push came to UPS also as shares for it increased by 5.3 percent, riding on the back of profits posted that surpassed the consensus estimates by analysts. The fact that UPS makes goods deliveries to everybody from industries, through diversified customers, makes its performance be often used as a barometer to the economy at large. Revenues of the company also surpass its expected figures and thus caused the increment in investor confidence.
ServiceNow, a cloud computing company that aids businesses to automate and streamline their processes, also did well. The stock gained 5.4% after the company's solid earnings and revenue, driven by growing demand from its customers to integrate artificial intelligence into their operations.
However, not every stock appreciated on Thursday. Big Blue was one of the worst performers of the day, with shares dropping 6.2%. The tech giant saw revenues slightly below analysts' estimates, which marked the company's worst trading day in six months. It weighed on the Dow during this worst day in six months for the tech giant as other stocks, such as Boeing, weighed on the index very heavily. Boeing shares fell 1.2% following the union machinists' vote to extend the strike. It further disrupted aircraft production. MORE THAN 60% of union members voting rejected a proposed contract, sending the strike it has been on now for six weeks into its seventh.
Union Pacific, the main railroad firm, suffered too as stock value fell by 4.4% after reporting a lower-than-forecast profit and revenue of the quarter.
Overall, the S&P 500 rose 12.44 points to close at 5,809.86. The Dow shed 140.59 points to end at 42,374.36, while the Nasdaq composite rose 138.83 points, closing at 18,415.49. While the day was a mixed bag, the S&P 500 did snap its losing streak, which was a small ray of hope in this market.
The higher than broader regression this week into stock prices was recorded by both S&P 500 and Dow to close at record highs at the end of last week. Beyond yesterday, rising Treasury yields in the bond market have been a significant contributor generally encouraging investors to reassess the valuation of stocks. Analysts comment that the stocks look expensive, considering the fact that their prices increase faster than corporate profits.
Yields have continued to drift steadily higher with a fresh stream of US economic reports proving that the economy continues to surprise on the upside. While this is usually a good thing, it makes things harder for the Fed in terms of how they're treating interest rates as they try to balance healthy growth with stifling inflation. As expectations of just how deep the Fed will cut interest rates lessen, some of those yields have rebounded.
A mixed report on unemployment claims painted a divided picture about labor markets. Fewer workers applied for unemployment benefits last week-a possible indication that layoffs were low-but the overall number of people collecting unemployment reached its highest level in almost three years. "Signs of slowing are evident but do not necessarily point to the kind of employment crash economists fear," said analysts from High Frequency Economics.
Treasury yields backed off that mixed data, the yield on the 10-year Treasury pulling back to 4.20% from 4.25% late Wednesday. Still high, it's back above last week's closing yield of 4.08%.
Meanwhile, preliminary reports suggested that expansion in U.S. business activity may have also picked up slightly, led by strength in the services sector despite persistent weaknesses in manufacturing. Business confidence appears to be rebounding as the economy heads into a period where presidential election jitters are minimal. New home sales were also better than expected, according to one report.
International markets recorded some limited gains in Europe after a mixed session in Asia. Global markets were characterized by volatility and on-going instability around the world.