Dow Lags, Nasdaq Gains In Wake Of Tesla Earnings

The Dow Jones Industrial Average lagged the major indexes in today’s stock market. Meanwhile, the Nasdaq was buoyed higher by Tesla (TSLA), which spiked following a record quarterly earnings report late Wednesday.


Dow Jones In The Stock Market Today

An hour before the close, the tech-heavy Nasdaq composite was up 0.4%. But the Dow Jones lost 0.3%. The S&P 500 traded up about 0.2% after cutting an earlier loss. Meanwhile, at around 3:15 p.m. ET, the Russell 2000 edged up 0.1% but pared earlier gains. Data showed volume was running higher on the Nasdaq and on the NYSE vs. the same time on Wednesday.

Consumer discretionary and real estate stocks were among those outperforming, while material and energy stocks lagged. But there were more negative sectors than positive. Stocks appear to be pausing in a healthy consolidation after a week of very strong gains.

In economic news, initial claims for unemployment benefits fell to 290,000 last week, from 296,000 the week before, the Labor Department reported. The numbers marked a new low amid the pandemic era.

In Thursday’s market, both growth stocks and the 10-year U.S. Treasury note’s yield rose. This is unusual as growth stocks are normally hindered by climbing yields. The 10-year bond’s yield reached 1.67%, its highest point since May 19.

Meanwhile, growth-focused Innovator IBD 50 ETF (FFTY) rose 1.1%, outperforming the market indexes. Stocks leading the index on the upside included Asana (ASAN) and Penske Automotive (PAG), which rose over 5% each.

Stocks To Watch

Tesla (TSLA), a member of the IBD Leaderboard list of leading growth stocks, rose 3% after posting an earnings beat last Wednesday. Tesla reported adjusted earnings of $1.86 a share, above estimates for $1.62 a share. Sales of $13.76 billion beat views for $13.63 billion per Refinitiv. The stock now sits just 1% away from a new 900.50 cup-based entry.

Elsewhere, fellow automaker Ford Motor (F) scored a breakout. Shares passed a buy point from a 16.55 cup-without-handle base entry, according to MarketSmith analysis. The pattern has been forming since early June. Shares traded pennies below the buy are in afternoon trading.

The stock has been moving higher after an analyst upgrade. Credit Suisse analyst Dan Levy noted a potential favorable cycle into 2023 for the firm, as Ford rebuilds low vehicle inventory.

Elsewhere, (MTCH) topped an entry of 174.78 in heavy volume move. Shares jumped over 10% on Thursday after a post on the Android Developers Blog announced that, effective Jan. 1, 2022, service fees charged to all third-party subscription apps on the Google Play Store will be reduced by 15%.

The dating app firm is set to report earnings in 12 days, which adds risk.

Follow Rachel Fox on Twitter at @rachelgfox more Dow Jones and stock market commentary.


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