Market Update

Investing.com— The S&P 500 snapped a three-day losing streak Thursday, as Tesla racked up its best day in over a decade following the electric vehicle maker's better-than-expected quarterly results.

At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average fell 140 points, 0.3%, while the S&P 500 index rose 0.2%, and NASDAQ Composite climbed 0.8%.

Tesla Notches Biggest One-Day Gain Since 2013 After Stronger-Than-Expected Q3 Results

Tesla (NASDAQ:TSLA) rallied 22%, achieving its largest one-day gain since 2013 after reporting robust third-quarter profits and surprising investors with a forecast of 20-30% sales growth next year.

The earnings beat was fueled chiefly by improved margins, with gross margins excluding credits rising to 17.05% from 14.7% in the prior quarter. This important metric outperformed the Street's estimate of 15.1% and suggests a trajectory back into the 20% range by the second half of 2025, according to Wedbush.

Tesla is the first of the “Magnificent Seven” tech stocks to report this earnings season, raising hopes for positive results from peers like Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), and Amazon (NASDAQ:AMZN), all set to report next week.

Quarterly Earnings Pour In

As of now, around 29% of S&P 500 companies have reported results this quarter. Of these, 81% have surpassed earnings estimates.

• Boeing (NYSE:BA) stock fell 1.4% after its machinists rejected a revised contract offer, prolonging labor issues that pressure new CEO Kelly Ortberg.
• Southwest Airlines (NYSE:LUV) stock rose 5.5% following reports of a potential settlement with Elliott Investment Management to avoid a proxy fight, along with a surprise profit due to improved pricing and demand.
• UPS (NYSE:UPS) stock climbed over 5% after reporting third-quarter earnings and revenue that outperformed expectations.
• Hasbro (NASDAQ:HAS) stock declined by 6% following a drop in sales amid tightened consumer spending, though cost controls improved margins.
• IBM (NYSE:IBM) stock fell over 6% due to reduced spending in their consulting segment, despite strengths in their software unit.

Jobless Claims Fall

In labor news, the number of Americans filing new applications for unemployment aid unexpectedly fell by 15,000 last week, indicating a reasonably healthy labor market.

The Federal Reserve's "Beige Book" report stated that employment had "increased slightly" in early October, and the positive payroll results at the start of the month prompted a reassessment of potential future rate cuts by the Federal Reserve.

Investors are also monitoring the political landscape, with a WSJ poll showing former President Donald Trump leading Democratic candidate Kamala Harris 47% to 45%. This margin suggests a tight upcoming election.

*Peter Nurse, Ambar Warrick contributed to this article.