Stock market today: Stocks climb as Treasury yields ease, but weekly losses loom
In This Article:
US stocks rose on Friday morning as Treasury yields tipped lower, but markets were still on track for weekly losses with earnings season well underway.
The S&P 500 (^GSPC) gained roughly 0.5%, after the benchmark snapped a three-day losing streak. The Dow Jones Industrial Average (^DJI) added 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) put on around 0.6%.
Stocks are reviving somewhat as a pullback in US bond yields lifted some recent pressure on risk appetite. The benchmark 10-year yield (^TNX) slipped to around 4.18%, easing back from a three-month high above 4.25% hit midweek.
But the Dow and S&P 500 still look poised for downbeat weeks after taking a hard knock from that surge, amid worries the Federal Reserve will go slow on interest-rate cuts.
Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards
Investors are now starting to brace for potential disruption on the horizon: The November US jobs report due next Friday, and the tight presidential election a week later.
Meanwhile, the spate of earnings is easing as the week draws to a close, with Colgate-Palmolive (CL) the highlight.
At the same time, Tesla's (TSLA) earning surprise has laid the ground for five other "Magnificent Seven" megacaps reporting next week: Google parent Alphabet (GOOG, GOOGL), Meta (META), Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN).
Elsewhere in corporates, Capri (CPRI) stock cratered after a judge blocked the parent of Michael Kors from merging with Coach owner Tapestry (TPR).
LIVE 3 updatesTesla is still a car company — and for now, that's okay
What seems more clear after Tesla’s latest earnings report is that for now, Tesla is primarily a car company, and the more successful a car company it is, the more runway investors will give it to transform, writes Yahoo Finance's Julie Hyman.
The numbers help tell the story: Tesla’s automotive revenue was $20.02 billion last quarter, a full 79% of the total. Auto services accounted for 11%, and energy generation and storage about 9%.
It was profitability that really encouraged investors last quarter, coming in at 17.1% for the auto segment ex-regulatory credits. That, plus Musk’s prediction that deliveries will rise this year and growth will be “something like 20% to 30%” next year, sent the stock soaring 22%, marking the biggest single-day gain since May 2013.
It also sent Tesla shares back into the green for the year after what’s been a bumpy road. In the two weeks since the company’s robotaxi event, the stock had slumped by 11%.
Stocks rise to cap a rough week
US stocks rose on Friday morning as Treasury yields tipped lower, and as uncertainty over the Fed's next move shadowed an earnings season in full swing.
The S&P 500 (^GSPC) rose roughly 0.5%, after the benchmark snapped a three-day losing streak. The Dow Jones Industrial Average (^DJI) added 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) gained around 0.6%.
Stocks are reviving somewhat as a pullback in US bond yields lifted some recent pressure on risk appetite. The benchmark 10-year yield (^TNX) slipped to around 4.18%, easing back from a three-month high above 4.25% hit midweek.
The S&P and the Dow are on track to record losses for the week.
Good morning. Here's what's happening today.
Economic data: Durable goods orders (September preliminary); University of Michigan Consumer Sentiment, (October); Kansas City Fed Services Activity (October).
Earnings: New York Community Bancorp (NYCB), Colgate-Palmolive (CL), Booz Allen Hamilton (BAH), Aon (AON), WisdomTree (WT), Piper Sandler (PIPR), Centene Corporation (CNC), Newell Brands (NWL).
Here are some of the biggest stories you may have missed overnight and early this morning:
Tesla is still a car company — and for now, that's okay
Capri stock craters after $8.5 billion Tapestry deal blocked
Mercedes-Benz to step up cost cuts as China slowdown drags down earnings
Apple's iPhone sales in China slip in Q3, Huawei share soars
Chinese robotaxi startup WeRide gets $4.21B valuation in US IPO
BofA's Hartnett says bets on gold are rising before US election
