Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Wall Street closes higher boosted by strong Tesla earnings

Published 07/21/2022, 07:30 AM
Updated 07/21/2022, 07:00 PM
© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 30, 2022. REUTERS/Brendan McDermid/File Photo

© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 30, 2022. REUTERS/Brendan McDermid/File Photo

By Echo Wang

(Reuters) - Wall Street's main indexes rose on Thursday boosted by a late-afternoon rally and gains in heavyweight growth stocks, including Tesla (NASDAQ:TSLA).

The tech-heavy Nasdaq added 1.4% to lead the gains while the S&P 500 closed at its highest level since June 9. The Dow Jones Industrial Average climbed 0.5%.

Tesla shares surged 9.8% after the electric vehicle maker late on Wednesday posted better-than-expected quarterly results. The gains helped offset a slide in telecom and energy shares, while AT&T Inc (NYSE:T) tumbled, sending telecom shares down after the wireless carrier cut its cash flow forecast saying some subscribers were delaying bill payments. Energy stocks slipped on weak crude prices.

“The earnings picture has been maybe a little better than investors feared," said J. Bryant Evans, investment adviser and portfolio manager at Cozad Asset Management. "We investors are thinking that ..especially technology (sector) has come down too far, and maybe there's some valuation opportunities there.”

Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) each rose 1.5%, with both companies set to report their earnings on July 28.

The Dow Jones Industrial Average rose 162.06 points, or 0.51%, to 32,036.9, the S&P 500 gained 39.05 points, or 0.99%, to 3,998.95 and the Nasdaq Composite added 161.96 points, or 1.36%, to 12,059.61.

Nine of the 11 major sectors of the S&P 500 closed in positive territory, with consumer discretionary, heath care and information technology posting the biggest gains adding over 1% each.

Falling oil prices hit the S&P 500 energy sector, which tumbled 1.7% to lead declines across the sectors.

Market participants continue to await anxiously for the U.S. Federal Reserve meeting next week where policymakers are expected to raise interest rates by 75 basis points to curb runaway inflation.

Joining its global peers, the European Central Bank delivered a 50 basis points rate hike to tame inflation in its first rate increase since 2011.

The Fed rate decision next week will be followed by the crucial second-quarter U.S. gross domestic product data, which is likely to be negative again.

By one common rule of thumb, two quarters of negative GDP growth would mean the United States is in a recession.

The number of Americans enrolling for unemployment benefits rose to the highest in eight months, the latest data to further fan fears of a recession.

“Consumers are just beginning to react to less money in their pockets, either from reduced overall job market or from rising interest rates and inflation”, Evans added.

“Part of the strong earnings reflects the past strength of consumers, whereas a lot of this broader decline that we've seen .. over the past few months has priced in a slowing in broader economy that eventually would affect consumers.”

Volume on U.S. exchanges was 10.58 billion shares, compared with the 11.63 billion average for the full session over the last 20 trading days.

© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 30, 2022. REUTERS/Brendan McDermid/File Photo

Advancing issues outnumbered declining ones on the NYSE by a 1.77-to-1 ratio; on Nasdaq, a 1.52-to-1 ratio favored advancers.

The S&P 500 posted 1 new 52-week highs and 29 new lows; the Nasdaq Composite recorded 23 new highs and 46 new lows.

Latest comments

Recession seems to be the backbone of wall street. Economy collapses and more free money for buybacks instead of investing in infrastructure or jobs. America is forked.
“Strong Tesla Earnings” Haha! What a joke!
It's code. It means "stocks went up and we have no clue as to why."
Another day of miracles in the biggest investment JOKE in the world, with a sprinkle of "late trade" magic to boot.  How many thousands of points in losses have miraculously vanished by the close this year?  The Wall Street criminals show their might, laugh in the face of the US working class, and hand place the NASDAQ above 12K.  The most flagrant week of FRAUD this year.  Assume the proper position America.
love this market. guarantee never to go down. buy 100 lots and earn 20000$ daily.
False.  Market goes red plenty.
Amazing TSLA solo keeping up entire NAsdaq now if that aint some bull horse
in this bloated market, nothing to buy, too many to sell
Bears taking it in the shorts. SWIDT?
  If you think the Fed Reserve is gonna shock the market, then you don't know the Fed.
there going to be no shock it'll be .75 and most likely. 5 or .25 in September if inflation does slow like the signals are suggesting it will.
I'm more interested in what happens Thursday if GDP comes in negative. Stocks should sell off but given how backwards things are, they'd probably soar on the expectation of QE.
Oil will keep slipping until 3:00 pm 7/27. Manipulate Powell into thinking that he controls inflation.
the article states that this is a short term rally.
ecb hit left cheek, Fed is about to hit right cheek
remember Fed's even worse stinky 75 bps coming soon
market celebrating ecb's stinky 50 bps?
...so why does one stock get to dictate our entire equities market?  There is something wrong with this picture.
the market bottomed on June 16th and inflation has peaked.
haha what a fine joke
Under pressure, and the intraday volatility magically reappears.  Another day of criminal comedy in the laughingstock of the financial world.  The relentless, fraudulent pumping of the NASDAQ continues, and the loss mitigation flagrant as ever.  Biggest investment JOKE in history.
you keep on stating same thing. you know very well the fed will always pump the s&p. the market will NEVER go down. just go long everyday at 12pm UK time and sell at close of US market. simple!
  "you keep on stating same thing" -- Mit is more a fud spammer than anything.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.