U.S. stock futures are mostly up following Wednesday’s decline, which was characterized by rising yields and falling shares of major tech companies. Tesla (NASDAQ: TSLA) saw its stock soar after reporting better-than-expected earnings and an optimistic delivery outlook. Meanwhile, striking Boeing (NYSE: BA) workers on the U.S. West Coast have rejected a revised pay offer, prolonging a costly labor stoppage.
U.S. stock futures edged higher on Thursday as investors evaluated a range of quarterly corporate earnings amid rising Treasury yields.
By 03:39 ET (07:39 GMT), Dow futures remained largely unchanged, S&P 500 futures rose by 22 points (0.4%), and Nasdaq 100 futures climbed by 154 points (0.8%).
The main indexes fell in the previous session, with significant declines in major tech stocks like Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) particularly impacting the Nasdaq Composite.
Investor sentiment was dampened by a rise in U.S. Treasury yields to three-month highs. Analysts viewed this increase as a sign that markets are beginning to anticipate that recent strong economic data and the upcoming U.S. presidential election will lead the Federal Reserve to slow down interest rate cuts.
**Tesla Shares Surge on Strong Earnings and Outlook**
Tesla’s shares jumped in after-hours trading following the electric vehicle manufacturer’s report of better-than-expected third-quarter profits and a projected “slight” increase in deliveries for the year.
Adjusted net income for the quarter rose 8% compared to the same period last year, reaching $2.5 billion, surpassing estimates of $2.1 billion, partly due to a reduction in operating expenses. Revenue also increased by 8%, totaling $25.2 billion.
The results come after Tesla faced several challenges in previous quarters, including concerns about slowing global EV demand and a legal dispute regarding Chief Executive Elon Musk’s compensation package. Musk’s political views and the recent launch of Tesla’s “Cybercab” robotaxi, which received lukewarm reviews from analysts, have also drawn attention.
Nevertheless, the company stated that it anticipates “slight growth” in vehicle deliveries for 2024, while Musk projected that cost reductions and lower interest rates could drive vehicle sales growth of 20% to 30% next year.
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