[ad_1]
U.S. stocks closed lower on Thursday amid weaker-than-expected quarterly profit at Tesla (TSLA), mixed earnings data from various sectors, and softer-than-expected housing and jobs data.
The S&P 500 (^GSPC) fell 0.59% recovering from earlier lows, while the Dow Jones Industrial Average (^DJI) dropped nearly 108 points, or 0.32%. The technology-heavy Nasdaq Composite (^IXIC) fell 0.80%.
Tesla stock was down 9.75%, hitting its lowest level in nearly three months, after the company reported first-quarter earnings on Wednesday that fell short of Wall Street’s expectations. Tesla’s recent price cuts weighed on profits as the electric vehicle maker reported quarterly gross margins of 19.3%, while Wall Street analysts had expected 20.7%.
Shares of traditional automakers making the push into EVs followed Tesla lower with both Ford (F) and General Motors (GM) falling nearly 3%. EV-focused companies Rivian (RIVN) and NIO (NIO) also saw declines as Rivian shares fell nearly 4%.
“They’re backed into a corner,” Ronald Jewsikow, Guggenheim Securities Vice President of Automotive Equity Research told Yahoo Finance Live after Wednesday’s report. “They put a lot of supply in place that needs to find a home. And the only tool they really have is cutting prices.”
AT&T (T) was the biggest loser in the S&P 500, with shares falling 10.43% after the company reported revenue was down 20% compared to the same period a year prior.
Shares of IBM (IBM) gave back gains throughout the day and ended near the flatline as the company reported adjusted earnings per share of $1.36 against a Street estimate of $1.25 after the close on Wednesday.
American Express (AXP) shares fell 1% as the company’s missed Wall Street estimates for earnings per share. Though, American Express CEO Stephen Squeri told Yahoo Finance that nothing in the quarter “went really unexpected.”
In casinos, Las Vegas Sands projected a positive tone for the industry, with Macao revenue nearly tripling from the same period a year prior. Las Vegas Sands stock popped 3.66% as the casino operator reported quarterly Macao revenue of over $1 billion for the first time since 2019. Wynn Resorts (WYNN) stock also popped on the news.
Oil futures traded lower on Thursday with West Texas Intermediate (CL=F) and Brent (BZ=F) falling more than 2%. Brent Crude has now traded lower in three of the last four trading sessions, with prices dropping below $81 a barrel.
Economic data also came into focus Thursday as weekly jobless claims came in higher than expected. The report said 245,000 jobless claims were filed. Economists surveyed by Bloomberg had been expecting 240,000 claims. Meanwhile, existing home sales retreated 2.4% in March from the month prior. The annualized rate of 4.44 million fell short of the 4.5 million expected by economists, according to Bloomberg data.
“Barring a sharp backup in mortgage rates, resilient demand should keep a floor under sales, with the mortgage application data point for March already consistent with an increase in sales in April,” Nancy Vanden Houten, lead US economist at Oxford Economics, said in an email. “Further ahead, however, we think home sales may come under some renewed pressure as the economy heads toward recession.”
Josh is a reporter for Yahoo Finance.Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
[ad_2]
Source link