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Tesla Surge Helps S&P 500, NASDAQ Recover From Early Session Weakness

By:
James Hyerczyk
Updated: Jan 27, 2023, 16:41 UTC

The S&P 500 and NASDAQ Composite are higher after 3% jump in electric vehicle car maker Tesla amid strong earnings.

S&P 500 Index, NASDAQ Composite, Dow

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The major U.S. stock indexes are trading mixed shortly after the cash market opening on Friday with the Dow under pressure and the NASDAQ Composite the biggest gainer.

All three of the majors are well above their overnight lows after recovering most of their earlier losses. The indexes are also in a position to post a strong weekly gain, fueled by better-than-expected economic growth and a stellar performance by speculator favorite Tesla.

At 15:51 GMT, the blue chip Dow Jones Industrial Average is trading 33871.95, down 77.46 or -0.23%. The benchmark S&P 500 Index is at 4053.95, down 6.48 or -0.16% and the tech-weighted NASDAQ Composite is trading 11523.83, up 11.42 or +0.10%.

All the major indexes are up for the week and month. The Dow and the S&P 500 have gained 1.7% and 2% this week, respectively. The NASDAQ is up 3.2 on the week and is set to notch its best monthly performance since July. The NASDAQ is also in a position to post its fourth straight weekly gain, CNBC reported.

Daily TESLA

Stocks on the Move

Although the markets are putting in a mixed performance, today’s rebound is impressive.

Helping to give the S&P 500 and NASDAQ Composite a boost today are shares of Tesla. The electric vehicle car maker is up 3% on Friday, building on a 24% weekly gain on the back of an earnings beat.

Additionally, strong guidance is boosting American Express 10% despite a top-and bottom-line miss.

Shares of credit card company American Express are up double-digits despite weaker-than-expected results for the fourth quarter. The company reported $2.07 in earnings per share on $14.18 billion of revenue. Analysts surveyed by Refinitiv were looking for $2.22 per share on $14.22 billion of revenue.

However, American Express’ guidance for 2023 was better than anticipated for earnings and revenue. Also, AMEX said it would be increasing its dividend by 15%.

Volatility Hitting Chip Stocks

Chips stocks are posting a volatile, two-sided trade early in the session on Friday. The price action suggests investors believe a steep loss in shares of Intel are a company specific issue rather than a warning sign for chip stocks in general.

Intel shares are down over 8% on Friday after the chipmaker issued fourth-quarter results that failed to meet analysts’ estimates and gave a weaker-than-expected forecast.

Analysts were blunt in their assessment of Intel’s weak results and disappointing guidance:

“That was indeed something,” Cowen analyst Matthew Ramsay wrote in a client note. “Somehow… It was much worse than feared.”

“No words can portray or explain the historic collapse of Intel, with management attempting to blame a worst-ever PC inventory digestion dynamic and macro/China/enterprise to an over 20% q/q decline in sales,” wrote Rosenblatt’s Hans Mosesmann, who rates the stock a sell.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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