Stock Market Today: Tesla Soars As Most of Wall Street Drifts in Mixed Trading

NEW YORK (AP) U.S. stocks drifted to a mixed finish. The S&P 500 closed little changed Wednesday after a two-day winning streak erased nearly two-thirds of last week's steep loss. The Dow Jones Industrial Average fell 0.1% and the Nasdaq composite edged up 0.1%. Tesla jumped after announcing the day before that it would speed up production of more affordable vehicles. Norfolk Southern stumbled after reporting weaker-than-expected results, as did Teledyne Technologies. Treasury yields rose in the bond market following the latest report on the US economy which came in hotter than expected. Durable goods orders rose more than expected.

THIS IS A LATEST UPDATE. AP's earlier story follows below.

NEW YORK (AP) U.S. stocks are drifting Wednesday as momentum on Wall Street eases after some sharp gaps.

The S&P 500 was down 0.2% at the end of the session. His two-fight winning streak at the start of the week had erased nearly two-thirds of the previous weeks. significant loss.

The Dow Jones Industrial Average was down 90 points, or 0.2%, as of 3 p.m. Eastern Time, and the Nasdaq Composite Index was down 0.2%.

Tesla rose 10.8% after announcing the day before that it would ramp up production of new and more affordable vehicles, which investors hoped would revive growth. This announcement helped investors overcome the 55% drop in profits announced by Tesla.

Tesla is the first in the group of stocks known as the Magnificent Seven to report earnings for early 2024. The focus is on the small group of stocks because they have driven most of the stock market gains Americans last year, and they will have to perform to justify their high prices.

Meta Platforms will report its latest results after trading closes on Wednesday. Alphabet and Microsoft will follow a day later.

The hope is that profit growth will spread beyond the Magnificent Seven to more types of companies, thanks in large part to a remarkably strong U.S. economy. They will likely need to make bigger profits if they want their stock prices to rise. That's because they're unlikely to get much help from the other lever that can push up stock prices: interest rates.

A good earnings season should help restore market confidence, according to Solita Marcelli, chief investment officer for the Americas region at UBS Global Wealth Management.

Treasury yields were higher in the bond market, increasing pressure on stocks, following the latest report on the US economy which came out hotter than expected. A chain of recent such reports has diminished hopes that the Federal Reserve can implement all three interest rate cuts this year, which he had reported earlier.

Wednesday's report said orders for machinery, aircraft and other durable manufactured goods were stronger than expected last month. Wall Street finds itself in a delicate situation where it wants the economy to avoid a painful recession, but not so hot that it maintains upward pressure on inflation and convinces the Fed not to cut rates. rate.

The 10-year Treasury yield rose from 4.60% to 4.64% Tuesday evening.

On Wall Street, rail operator Norfolk Southern fell 3.8% after reporting poorer results for a more recent quarter than expected.

Boeing lost 3% despite published results were not as bad as analysts feared. The company, which faces criticism over the safety of its planes, said it was taking steps to improve the quality of its manufacturing, which has slowed its production.

Teledyne Technologies fell 9.8%, one of the market's steepest losses, after the seller of digital imaging sensors, cameras and other equipment reported lower profits and revenue to forecasts. It said demand in the industrial automation and test and measurement markets was weaker than expected.

On the winning side of the market, Hasbro jumped 11.3% after the toy and game company reported earnings and revenue for the latest quarter that beat analysts' expectations. It benefited from the growth of its Baldur Gate 3 and Magic: The Gathering games, as well as its Peppa Pig content.

Texas Instruments climbed 5.2% after reporting higher-than-expected earnings and revenue for the latest quarter. Boston Scientific was also a major driver of the S&P 500's rise. It rose 5.9% after beating earnings and revenue forecasts.

In overseas stock markets, Japan's Nikkei 225 jumped 2.4% as the value of the Japanese yen continues to fall against the U.S. dollar. The yen is trading at a 34-year low, giving a boost to Japanese exporters but also sparking speculation about whether Japanese authorities will take steps to strengthen their currency.

Stock indexes rose in much of the rest of Asia, but fell slightly in Europe.

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AP writers Matt Ott and Zimo Zhong contributed.

Stan Choe, Associated Press