Beautiful day for Tesla on Wall Street

Beautiful day for Tesla on Wall Street


The stock exchanges in New York showed almost no change on Thursday, with the Dow Jones index still notching a new record. The maker of electric cars Tesla was a top gainer thanks to great numbers. Furthermore, attention was paid to other earnings report and some macroeconomic data.

The Dow closed slightly higher at 22,026.10 points. One day earlier, the milestone of 22,000 points was reached for the first time by the index. The broad S & P 500 dropped 0.2 percent to 2472.16 points. Nasdaq dropped 0.4 percent down to 6340.34 points.

Tesla made an increase of 6.5 percent. The company managed to double its quarterly sales, helped by the increased demand for the sedan Model S and the SUV Model X. According to experts, the loss of $336 million was also less than what analysts had expected. In addition, Tesla announced that the new Tesla Model 3 was enthusiastically received.

“The real test will come in Q4 (when production is to ‘approach 5,000 units per week’, a big leap vs. 3Q),” JPMorgan analyst Ryan Brinkman wrote. “We continue to think that execution risk remains elevated relative to the ramp of production.”

Also Yum! Brands, KFC’s parent company, Pizza Hut and Taco Bell, opened the books for the past quarter. Investors, however, were not impressed by the figures and the share fell 2.4 percent. Cosmetics manufacturer Avon Products also reported disappointing figures and dropped almost 11 percent in red.

The Israeli pharmacist Teva, listed in New York, quenched 24 percent, due to a loss of billion, a new profit warning and a reduction of the dividend. Allergan, Botox’s maker Allergan, went up slightly after publishing compelling quarterly results.

Insurer AIG added 0.2 percent after disclosure of results. Oil and gas group Chesapeake Energy decreased 2.6 percent, despite better than expected quarterly performance.

There were also data about the US service sector. According to research agency ISM, it grew less than a month earlier in July. US manufacturing orders showed clear recovery of the dip a month before. Payment claims in the US went down last week. On Friday, the US Government’s major job report will be published.

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I cover technology, utilities and biotechnology for Markets Morning, and I help out occasionally with other industry sectors. I've written about investment and personal finance topics for more than 20 years from a lowly copywriter to editor-in-chief, so I've done a little bit of everything. For what it's worth, I have a BA from Duke University and an MBA from Rollins College. I'm married with one daughter, and that's worth more than everything else put together.