New York Stock Market Mixed in Early Trading Amid Stabilizing Treasury Yields... Tesla Soars 17%

Tesla Surges After Beating Earnings Expectations
U.S. Treasury Yields Stop Rising and Decline
Last Week's New Unemployment Claims Decrease

The three major indices of the U.S. New York Stock Exchange showed mixed trends in early trading on the 24th (local time). While Tesla, which announced better-than-expected earnings the previous day, surged nearly 20%, the S&P 500 and Nasdaq indices were rising. The easing of the rise in U.S. Treasury yields also appears to be supporting the stock price rebound.

As of 10:46 a.m. in the New York stock market on the day, the Dow Jones Industrial Average, centered on blue-chip stocks, was down 0.35% from the previous trading day at 42,366.1. The S&P 500, focused on large-cap stocks, was up 0.22% at 5810.14, and the Nasdaq, centered on tech stocks, was trading 0.65% higher at 18,394.73.

By individual stocks, Tesla surged 17.11%. Tesla announced after the market closed the previous day that its third-quarter revenue was $25.182 billion and earnings per share (EPS) were $0.72. The EPS exceeded analysts' expectations, leading to a rise in the stock price. Earlier, market research firm FactSet had expected Tesla to record third-quarter revenue of $25.5 billion and EPS of $0.6. Whirlpool and Lam Research also rose 11.95% and 3.82%, respectively, after releasing earnings that beat expectations. On the other hand, IBM fell 6.44% as its consulting revenue fell short of Wall Street forecasts.

With the earnings season in full swing this week, more than 32% of S&P 500 companies have reported third-quarter results so far. According to FactSet, 76% of the companies that disclosed earnings posted results that exceeded market expectations.

The rise in Treasury yields, which had weighed on the stock market this week, is also showing signs of easing. The U.S. 10-year Treasury yield, a global bond yield benchmark, fell 2 basis points (1bp = 0.01 percentage points) from the previous trading day to 4.22%, and the 2-year Treasury yield dropped 2 basis points to 4.06%.

On Wall Street, there is also analysis that although volatility is increasing ahead of the U.S. presidential election, there is no need for excessive caution.

Paul Hickey, co-founder of Bespoke Investment Group, said, "The market may decline slightly after the November U.S. presidential election, but it will stabilize afterward," adding, "Considering what we have observed over the past six weeks, part of the rally was strongly driven by earnings, and the stock price reaction was positive."

The employment data released that morning showed improvement. According to the U.S. Department of Labor, initial jobless claims for the week of October 13-19 decreased by 15,000 from the previous week to 227,000. This was 16,000 below the expert forecast of 243,000. Although initial jobless claims had increased recently due to the effects of Hurricanes Helen and Milton, last week they returned to pre-hurricane levels. Continuing jobless claims, which count those claiming benefits for at least two weeks, were 1.897 million for the week of October 6-12, marking the highest level in about three years. This exceeded both the revised figure for the previous week (1.869 million) and market expectations (1.88 million), which is attributed to the impact of two hurricanes and the Boeing workers' strike.

International oil prices are rising slightly amid Middle East tensions and North Korea’s deployment of troops to Russia. West Texas Intermediate (WTI) crude oil rose $0.39 (0.6%) from the previous trading day to $71.16 per barrel, and Brent crude, the global oil price benchmark, increased $0.46 (0.6%) to $75.42 per barrel.