S&P and Nasdaq rebound on Tesla’s good performance… Dauman↓ | Korean economy

Traders at the New York Stock Exchange./Photo = Yonhap AFP The major indices of the New York Stock Exchange closed mixed. As Tesla announced earnings that exceeded market expectations, the S&P 500 and Nasdaq index successfully rebounded. The rise in U.S. Treasury yields has subsided, but remains at a high level, and the Dow index closed lower.

On the 24th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed trading at 42,374.36, down 140.59 points (0.33%) from the previous day. The Standard & Poor’s (S&P) 500 index closed at 5809.86, up 12.44 points (0.21%), and the Nasdaq Composite Index, centered on technology stocks, up 138.83 points (0.76%) to close at 18,415.49.

On this day, while the surge in U.S. Treasury yields subsided, corporate performance divided the market by index. In particular, Tesla stock price soared 21.92%. This is the largest daily increase in 11 years since May 2013. As a result, NASDAQ and S&P 500 stopped their decline and succeeded in rebounding. However, the Dow fell for four consecutive trading days for the first time since last June.

According to the performance report released by Tesla after the market closed the previous day, Tesla announced that its sales in the third quarter of this year reached $25.18 billion, an 8% increase compared to the same period last year. Although it fell short of market expectations ($25.37 billion) compiled by financial information company LSEG, earnings per share (EPS) were $0.72, significantly exceeding the forecast ($0.58).

Amazon’s stock price rose 0.9% after the market closed and ahead of the earnings announcement. Among the ‘Magnificent 7’, which refers to a group of large technology stocks, Nvidia (0.61%), Microsoft (0.03%), and Meta (0.73%) rose, while only Apple (0.08%) and Alphabet (0.04%) remained flat. ended with

Disappointment with the performance of global information technology (IT) company IBM led the Dow index to decline on this day. IBM recorded an adjusted EPS of $2.30 in the third quarter, up 5% compared to the same period last year. It exceeds the market expectation ($2.22) compiled by financial information company FactSet. However, sales increased only 1% compared to the same period last year to $14.97 billion, slightly lower than the forecast ($15.08 billion), and the stock price fell 6.08%.

Boeing, the world’s largest aerospace company and a component of the Dow index, fell 1.18% after news that a new tentative agreement between labor and management was rejected in a vote by union members while the strike by the machinists’ union continued for five weeks.

Semiconductor equipment manufacturer Lam Research’s stock price jumped 5.09% as it announced third-quarter results that exceeded expectations and a bright performance outlook.

T-Mobile, one of America’s two largest wireless carriers, rose 5.74% as demand for premium plans that include streaming services drove its performance.

In addition, Molina Healthcare, a health insurance company that announced good results on this day, rose 17.67%, Whirlpool, a large home appliance company, rose 11.17%, and UPS, one of the two largest delivery service companies in the U.S., rose 5.28%.

The recent surge in U.S. Treasury yields, which has been a major burden on the stock market, has slowed. As of closing time, the 10-year maturity U.S. Treasury bond interest rate was 4.192%, down 0.05 percentage points from the previous day.

New indicators announced on this day suggested a decrease in the number of unemployed and an improvement in the economy. According to the U.S. Department of Labor, the number of new unemployment insurance claimants last week (13th to 19th) was 227,000, a decrease of 15,000 from the previous week.

New home sales announced by the U.S. Department of Commerce increased 4.1% from the previous month to 738,000 units (annualized), the highest level in 16 months since May of last year.

The October manufacturing purchasing managers’ index (PMI) compiled by S&P Global was 47.8, and the service industry PMI was 55.3, both recording the highest in two months.

According to the Chicago Mercantile Exchange (CME) FedWatch Tool, a U.S. benchmark interest rate prediction model, there is a 94.9% probability that the central bank (Fed) will further cut the benchmark interest rate by 0.25 percentage points next month, and there is a possibility that it will freeze it at the current level (4.75-5.00%). predicted 5.1%.

The volatility index (VIX) compiled by the Chicago Board Options Exchange (Cboe) recorded 19.08, down 0.16 points (0.83%) from the previous day.

Go Jeong-sam, Hankyung.com reporter jsk@hankyung.com