The stock market is currently on its sixth straight day of gains, propelled by positive economic growth and expectations for a slowdown in inflation. The U.S. economy defied expectations and grew at a 3.3% annualized pace in the last quarter of 2023, well above economists’ projections of 2%.
Although some recent economic data presents a more mixed picture, with stagnant durable goods orders in December and higher-than-expected unemployment claims, investor confidence remains strong.
Market sentiment about future Fed interest rates has remained fairly steady, with investors giving a 56% likelihood of no change in March followed by six consecutive cuts by December.
The dollar gained 0.4%, triggered by weakness in the euro after the European Central Bank highlighted risks of a recession. Meanwhile, Treasury yields were mostly down, spurring gains in the fixed-income space. The iShares 20+ Year Treasury Bond ETF (TLT) climbed 0.6%.
Oil prices surged 2% due to lower-than-expected inventory data and escalating tensions in the Middle East, causing WTI to soar to almost $77 per barrel, the highest level in two months. Conversely, Bitcoin remained steady at the $40,000 mark, and gold saw modest gains.
Performance of U.S. Major Indices and ETFs
| Major Indices | Price | % |
|---|---|---|
| Russell 2000 | 1,967.84 | 0.2% |
| S&P 500 | 4,879.59 | 0.2% |
| Nasdaq 100 | 17,516.46 | 0.1% |
| Dow Jones | 37,829.03 | 0.1% |
The SPDR S&P 500 ETF Trust (SPY) ascended 0.2% to $486.43, the SPDR Dow Jones Industrial Average (DIA) edged up 0.1% to $378.41, and the tech-focused Invesco QQQ Trust (QQQ) inched up 0.1% to $426.27.
Real Estate Select Sector Fund (XLRE) was the top performer among sectors, rising 1.2%. Conversely, the Consumer Discretionary Select Sector Fund (XLY) dipped 1.6%, influenced by Tesla’s performance.
Within industries, airlines took the lead with the U.S. Global JETS ETF (JETS) surging 2.7%.
Stock Movers on Thursday
- Tesla Inc. plummeted over 12% after falling short of analyst estimates for both revenue and earnings last quarter, marking its worst-performing day since September.
- EV competitors Lucid Group Inc. (LCID) and Rivian Automotive Inc. (RIVN) slid 7% and 2%, respectively.
- Airline stocks, influenced by quarterly earnings, experienced American Airlines Group Inc. (AAL) ascending 10%, Alaska Air Group Inc. (ALK) rising 5%, and Southwest Airlines Company (LUV) declining 0.6%.
- Other companies responding to earnings include United Rentals Inc. (URI) surging 13%, International Business Machines Corp. (IBM) climbing over 10%, Las Vegas Sand Corp (LVS) rising 0.7%, and Comcast Corporation (CMCSA) climbing over 3%. On the flip side, Humana, Inc. (HUM) dropped over 11%, Ameriprise Financial, Inc. (AMP) dipped 0.2%, Nokia Oyj (NOK) advanced 12%, Union Pacific Corporation (UNP) fell 0.9%, Xerox Holdings Corp. (XRX) rose 12%, Dow, Inc. (DOW) surged 2%, Northrop Grumman Corp. (NOC) fell 5%, Mobileye Global Inc. (MBLY) rose 1%, and Columbia Banking Systems Inc. (COLB) tumbled 22%.
This article is excerpted from: Tesla Analysts Cut Projections After Q4 Results: Stock ‘Egregiously Overvalued,’ ‘Difficult To Get Optimistic’
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