🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Stocks were rising as tech gets a boost from Tesla

Published 2023/01/26, 20:22
© Reuters.
US500
-
DJI
-
CVX
-
LVS
-
TSLA
-
IXIC
-

By Liz Moyer

Investing.com -- U.S. stocks were rising, led by tech stocks, on a better than expected reading of fourth-quarter economic output.

At 13:12 ET (18:12 GMT), the Dow Jones Industrial Average was up 46 points or 0.1%, while the S&P 500 was up 0.4%, and the NASDAQ Composite was up 0.8%.

Economic growth slowed in the fourth quarter compared with the third, a sign the Federal Reserve’s aggressive interest rate increases last year are kicking in. Gross domestic product rose 2.9% in the last three months of the year, beating expectations but slower than the 3.2% reported for the third quarter.

But the labor market remains robust, despite several large technology giants cutting jobs in recent days. Initial jobless claims of 186,000 came in lower than the 205,000 expected for last week and also below the week before that.

The Fed will meet next week to decide on the next step for interest rates, and most expect it will raise by another quarter of a percentage point, which is a smaller increment than at its previous meetings.

Investors have been awaiting the time when the Fed’s interest rate moves will pause or perhaps pivot, though Fed officials have emphasized they want to see the terminal rate above 5% in order to tame inflation. That implies another rate hike or two after next week’s meeting if the Fed meets expectations.

Stocks were getting a lift from Tesla's (NASDAQ:TSLA) better-than-expected results. The electric car maker said recent price cuts have fueled demand for the product, though it also acknowledged challenging economic conditions ahead. Shares of Tesla were up 9%

Shares of Las Vegas Sands Corp (NYSE:LVS) rose 7% after the casino operator reported an 11% gain in revenue in the recent quarter and expressed optimism about demand this year. Chevron Corp (NYSE:CVX) stock rose 4% after the oil major announced a plan to buy back $75 billion of its stock. Chevron reported record profit in recent quarters.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.