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. Results from American Airlines (AAL), Alaska Airlines (ALK), and Southwest Airlines (LUV) will also be closely watched for signs of impact after Boeing's (BA) door plug defects ground planes.
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 to freeze plans to increase production of the model, causing confusion for customers and suppliers and contributing to a drop in stock prices.
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