Wall Street Steady as Tesla Falls and Delta Rises/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street held mostly steady Thursday near record highs as investors absorbed mixed corporate earnings. Delta Air Lines jumped after strong profit results, while Tesla slipped amid federal scrutiny. Gold prices dipped slightly and Treasury yields remained stable.
Wall Street Update Quick Looks
- S&P 500 slips 0.1% after reaching record highs
- Dow Jones drops 126 points, Nasdaq down 0.1%
- Delta Air Lines soars 6.5% on better-than-expected profits
- Tesla drops 1.8% amid federal evaluation of self-driving system
- Gold prices ease slightly after recent rally
- AI-related stock valuations continue to raise concerns
- Lack of government economic data due to shutdown delays
- PepsiCo, Costco, Akero Therapeutics, MP Materials among top movers
Deep Look: Stock Market Holds Ground as Investors Weigh Delta Profits and Tesla Concerns
NEW YORK — Wall Street cooled slightly on Thursday, pausing just below record levels, as investors balanced strong corporate earnings from the airline sector against regulatory concerns impacting big tech names.
The S&P 500 edged down 0.1%, stepping back from its latest all-time high after an impressive eight-day run that saw consistent gains. The Dow Jones Industrial Average fell 126 points, or 0.3%, while the tech-heavy Nasdaq Composite also dipped by 0.1% in early morning trading.
Gold prices, which had been riding a major rally throughout the year, also declined modestly. Meanwhile, Treasury yields remained relatively unchanged, with the 10-year yield ticking up to 4.14% from 4.13%. The market’s steady performance reflects cautious optimism as investors continue to anticipate future interest rate cuts by the Federal Reserve.
Delta Soars with Strong Quarterly Report
Delta Air Lines stole the spotlight, climbing 6.5% after posting a stronger-than-expected profit for the summer quarter. The airline also delivered a robust full-year forecast that exceeded Wall Street estimates.
Delta President Glen Hauenstein credited a “broad-based acceleration” in sales trends, especially in domestic business travel over the past six weeks. The upbeat news lifted other airline stocks as well:
- United Airlines rose 4%
- American Airlines increased 2.2%
- Southwest Airlines added 1.8%
Tesla Slides Amid Self-Driving Probe
On the downside, Tesla shares fell 1.8% after the National Highway Traffic Safety Administration announced a preliminary investigation into the automaker’s “Full Self-Driving” feature. Safety concerns about the system have sparked renewed scrutiny, creating headwinds for the electric vehicle giant.
Tesla’s drop contributed to the broader tech sector’s struggle to maintain momentum, especially as concerns linger over high valuations tied to artificial intelligence stocks. The S&P 500, now up roughly 35% since its April low, faces pressure to justify its sharp gains with equally strong corporate earnings.
Corporate Earnings Take Center Stage
With key government economic data delayed due to the ongoing U.S. government shutdown, corporate earnings reports have become the market’s primary source of insight into the health of the economy.
PepsiCo added 0.3% after exceeding quarterly profit expectations and noting improved performance in its North American beverage division. Costco Wholesale gained 2.4% after reporting an 8% year-over-year increase in October revenue.
Akero Therapeutics surged 16.6% following news that Novo Nordisk plans to acquire the company in a deal worth up to $5.2 billion, pending FDA approval of Akero’s lead drug candidate. The acquisition adds to Novo Nordisk’s strategic growth beyond weight-loss drugs.
MP Materials rose 5.1% amid geopolitical developments. China announced new restrictions on exports of rare earth materials—vital components in electronics, EVs, and aerospace products. MP, which mines these resources in California, stands to benefit from tightened global supply.
Global Markets and SoftBank’s Big Move
International markets were mixed. Shanghai’s stock index jumped 1.3% as trading resumed after a holiday, while Japan’s Nikkei 225 climbed 1.8%.
Japanese tech conglomerate SoftBank Group posted one of the day’s largest global moves, surging 11.4% after it agreed to acquire the robotics division of Swiss company ABB in a $5.4 billion deal. The acquisition signals SoftBank’s renewed push into robotics and AI-focused technology.
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