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It was a mixed day for investors, as the Dow dropped over 200 points and the Nasdaq jumped after Tesla’s better-than-expected earnings report. In the afternoon, the Dow dropped 203 points, or 0.4%, to 42,311. Meanwhile, the Nasdaq and S&P 500 popped up 0.6% and 0.1%, respectively.
With that, eyes are on Capital One (COF-0.62%), which is set to report its earnings after the closing bell.
Tesla stock soars 20% after strong earnings
Tesla’s (TSLA+20.24%) stock stayed strong in trading Thursday after the company delivered earnings that largely surprised Wall Street, and Elon Musk delivered a new round of optimistic forecasts. It’s the first time in seven quarters — that’s almost two years — that Tesla has grown its earnings.
The automaker reported improved operating profit margins, automotive gross profit margins excluding the benefits of regulatory credits, and better earnings per share than analysts had expected for the July to September quarter. It also reported better-than-expected net income and its lowest cost per goods sold ever, at about $35,100 per vehicle.
IBM falls over 6% after disappointing earnings
IBM (IBM-6.73%) shares dipped 6% as the company reported third-quarter results that fell short of Wall Street’s revenue expectations. While adjusted earnings per share came in at $2.30, slightly above the anticipated $2.23, revenue reached $14.97 billion, missing the forecast of $15.07 billion. This mixed performance reflects ongoing challenges within the tech sector.
–William Gavin contributed to the article