S&P 500, Nasdaq hit new records despite big Tesla drop
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Traders working on the floor of the New York Stock Exchange on July 24, in New York City.
PHOTO: REUTERS
- S&P 500 and Nasdaq hit record highs, up 0.1% and 0.2% respectively, fuelled by tech gains; Dow Jones down 0.7% due to poor earnings.
- Alphabet rose 0.9% on strong profits and AI investments; Tesla fell 8.2% after Musk warned of earnings challenges after the tax credit ended.
- IBM, Honeywell, and UnitedHealth declined due to earnings reports/investigations; Dow slumped 17.5% after disclosing that it would slash its dividend by 50%.
AI generated
NEW YORK - The S&P 500 and Nasdaq edged up to fresh records on July 24, while the Dow retreated following a mixed round of corporate earnings that lifted Google parent Alphabet but battered Tesla.
The tech-rich Nasdaq Composite Index led major indices, finishing 0.2 per cent higher at 21,057.96, a new record.
The broad-based S&P 500 added 0.1 per cent at 6,363.35, also a record, while the Dow Jones Industrial Average dropped 0.7 per cent to 44,693.91.
Alphabet climbed 0.9 per cent after reporting US$28.2 billion in quarterly profits as it touted new artificial intelligence investments.
But Tesla slid 8.2 per cent as CEO Elon Musk warned of a rough patch for earnings following the elimination of a federal tax credit for electric vehicles.
While earnings have taken centre stage much of the week, stocks have also been buoyed by US President Donald Trump’s trade deal with Japan and hopes for more agreements.
“Buyers are in control and there remains a lot of optimism about future trade deals,” said Mr Adam Sarhan, of 50 Park Investments.
“For now, the market is choosing to look at the bullish side of the coin,” he said. “Not the bearish side and not the neutral side.”
But the Dow was weighed down by a 7.6 per cent drop in IBM and a 6.2 per cent fall in Honeywell International following earnings reports.
Another Dow member, UnitedHealth International, fell 4.8 per cent after it disclosed that it was cooperating with US Department of Justice criminal and civil probes into the company’s billing practices.
Also lower was chemical company Dow, which slumped 17.5 per cent as it announced it was slashing its dividend by 50 per cent as it reported an US$835 million quarterly loss.
Dow said the move was needed while it manages its business amid “weak macroeconomic conditions.”
Union Pacific fell 4.5 per cent as it disclosed that it was in talks with fellow freight rail company Norfolk Southern on a possible merger. Norfolk Southern, which also issued a statement confirming the talks, fell 0.8 per cent. AFP
