[New York Stock Market] Tesla Soars as S&P and Nasdaq Rebound... Dow Down 0.33%

Tesla Soars 21.9%... Biggest Rise in 11 Years
Government Bond Yields Slightly Fall, Stabilizing Market
Last Week's New Unemployment Claims Decrease

The three major indices of the U.S. New York Stock Exchange closed mixed on the 24th (local time). While Tesla, which announced better-than-expected earnings the previous day, surged more than 20%, the S&P 500 and Nasdaq indices managed to rebound. Although the rise in U.S. Treasury yields has eased, they remain at high levels, limiting the gains in the indices.

On this day in the New York stock market, the blue-chip-focused Dow Jones Industrial Average closed at 42,374.36, down 140.59 points (0.33%) from the previous trading day. The large-cap-focused S&P 500 rose 12.44 points (0.21%) to 5,809.86, and the tech-heavy Nasdaq increased by 138.83 points (0.76%) to close at 18,415.49.

By individual stocks, Tesla surged 21.92%, marking its largest single-day gain in over 11 years since May 2013. The sharp rise was driven by Tesla CEO Elon Musk's statement the previous day that vehicle sales are expected to increase by 20-30% next year. The earnings report released after the market closed the previous day also acted as a positive catalyst. Tesla reported third-quarter revenue of $25.182 billion and earnings per share (EPS) of $0.72. Market research firm FactSet had expected Tesla’s third-quarter revenue to be $25.5 billion and EPS to be $0.60, so the EPS exceeded analysts’ expectations. Whirlpool and Lam Research also rose 11.17% and 5.09%, respectively, after releasing earnings that beat forecasts. In contrast, IBM declined 6.08% as its consulting revenue fell short of Wall Street expectations.

As the earnings season has officially begun this week, 160 companies within the S&P 500 have reported third-quarter results so far. According to market research firm FactSet, the year-over-year earnings growth rate of these companies was 3.4%, which fell short of initial projections.

The upward trend in Treasury yields that had been weighing on the stock market this week is showing signs of easing. The U.S. 10-year Treasury yield, a global bond yield benchmark, fell 3 basis points (1bp = 0.01 percentage points) from the previous trading day to 4.21%, while the 2-year Treasury yield dropped 1 basis point to 4.07%. However, yields remain at high levels, which analysts say continues to burden the indices.

Rob Haworth, senior investment strategist at U.S. Bank Asset Management, said, "The (Treasury) yields have pressured the market and dampened enthusiasm in the stock market," adding, "There hasn’t been any outstanding earnings news to drive the market to new highs yet, and there is no broad momentum visible."

Some analysts suggest that although uncertainties such as the U.S. presidential election remain, there is no need for excessive caution. Paul Hickey, co-founder of Bespoke Investment Group, said, "The market may dip slightly after the November U.S. presidential election, but it will stabilize afterward," explaining, "Considering what we have observed over the past six weeks, part of the rally has been strongly driven by earnings, and the stock price reactions have been positive."

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

International oil prices fell on hopes for a Middle East ceasefire. West Texas Intermediate (WTI) crude oil closed at $70.19 per barrel, down $0.58 (0.8%) from the previous trading day, while Brent crude, the global oil price benchmark, fell $0.58 (0.8%) to $74.38 per barrel.