U.S. stocks rose on Thursday despite disappointing results from Tesla (TSLA) and better-than-expected U.S. economic growth.
The Dow Jones Industrial Average (^DJI) opened 0.2% higher on Wednesday, and the S&P 500 (^GSPC) rose 0.4% after the benchmark's four-year high close on Wednesday. Stock prices on the Nasdaq 100 (^NDX), which has a high proportion of high-tech stocks, rose about 0.5%.
Preliminary estimates of U.S. gross domestic product (GDP) for the fourth quarter released Thursday morning showed the economy grew at an annualized pace of 3.3%.Growth during this period was far faster than the 2% annual pace expected by economists.
Tesla warned that EV production growth had slowed “significantly” in profit-missing quarterly results, and CEO Elon Musk said that absent trade restrictions, Chinese automakers would He pointed out the risk of “destroying” rivals. The company's stock fell 8% in premarket trading, further underperforming the other Magnificent Seven tech stocks that have been driving the S&P 500's rise.
Intel's (INTC) results were an after-hours highlight in a deluge of reports, with Wall Street focused on the chipmaker's AI enhancements.
Shares of American Airlines (AAL) rose Thursday morning after the company released better-than-expected 2024 guidance. Southwest Airlines (LUV) stock also rose following the airline's latest quarterly results.
Alaska Airlines (ALK) announced it will incur $150 million in costs from grounding its Boeing 737 Max 9 aircraft following the recent mid-air door plug incident.
The FAA on Wednesday gave the green light for these 737 Max 9 planes to return to service once airlines complete safety inspections. But regulators also told Boeing (BA) to freeze plans to increase production of the model, causing confusion for customers and suppliers and contributing to the stock's decline.
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Crude oil prices rise on expectations of strong economic growth in the US
Oil futures rose on Thursday morning following the release of reports about stronger-than-expected U.S. economic growth.
West Texas Intermediate (CL=F) rose more than 1%, above the $76 a barrel level. The international standard price of Brent (BZ=F) rose more than 1% to over $81 per barrel.
Prices rose to a trading high after preliminary GDP data showed the U.S. economy grew at an annual rate of 3.3%, beating economists' expectations for 2.2% growth.
Crude oil futures continued to rise from the previous session following the release of US stockpiles, which had fallen sharply last week.
U.S. production also fell by 1 million barrels a day last week as temperatures plunged below freezing across oil-producing states, according to the latest data from the Energy Information Administration.
Refineries were operating at 85.5% capacity last week, affected by sub-zero temperatures, according to government data.
US stocks rise as US economic growth is stronger than expected Print
Stocks opened higher on Thursday after preliminary U.S. economic growth numbers were higher than expected.
The Dow Jones Industrial Average (^DJI) rose 0.3% on Wednesday, while the S&P 500 (^GSPC) opened 0.4% higher after the benchmark's four-year high close on Wednesday. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, rose 0.4%.
According to preliminary estimates of U.S. gross domestic product (GDP) for the fourth quarter, the economic growth rate for the same period was 3.3% per year, significantly higher than the 2% annualized rate expected by economists.
Despite Tesla's (TSLA) lackluster earnings report on Wednesday, shares rose. The EV giant missed out on profits in its latest quarter and warned that production growth would slow “significantly.” Tesla stock was down about 7% Thursday morning.
Fourth quarter US economic growth rate exceeds expectations at 3.3%
The US economy remains impressive.
A first look at fourth-quarter GDP growth released on Thursday showed the economy grew at an annualized pace of 3.3% in the final three months of 2023. Economists had expected growth to be 2%, according to Bloomberg data.
Given this figure, initial estimates of cumulative GDP growth in 2023 suggest that the economy grew by 2.5% last year, accelerating from 1.9% growth in 2022. The economy has grown in all four quarters of the year and now it has expanded for six quarters. line.
BEA said in a release that growth in the fourth quarter was driven by “increases in consumer spending, exports, state and local government spending, nonresidential capital investment, federal government spending, private inventory investment, and residential capital investment.” Ta.
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