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On a Volatile Wall Street, Tesla Helped Maintain Some Confidence

On a Volatile Wall Street, Tesla Helped Maintain Some Confidence

U.S. stocks gave back gains on Wednesday, pressured by rising Treasury yields and weakness in industrial sectors, but a rally in Tesla helped the technology sector boost gains, ahead of another round of declines. results of big tech.

In this context, the closings were disparate in the three reference indices of the New York Stock Exchange. So, The Dow Jones Industrial Average ended at 38,460.92 points, down 0.11%; The S&P500 stood at 5,071.63 points, gaining 0.02% and the Nasdaq Composite appreciated 0.10%, reaching 15,712.75 points.

Tesla shares rose 12%rebounding from a 15-month low hit earlier this week, after the electric vehicle maker said it was accelerating the launch of new electric vehicle models, which would also include more affordable options, in the second half of 2025.

A cheap electric vehicle model could represent Tesla’s next stage of growth and also enable more sales of its high-margin self-driving software.

The news brushed aside the issue of the company’s weaker-than-expected first-quarter earnings, as well as doubts about its plans to pivot heavily toward robotaxis and fully autonomous driving, which CEO Elon Musk had recently touted.

It is expected that the Magnificent Seven, with good results, can boost the technology sector and the market in general.

First quarter earnings season in full swing

Beyond technology companies, there were many companies that reported their quarterly earnings this Wednesday.

Boeing shares fell more than 3% after Mody’s Ratings downgraded credit rating the company to Baa3 from Baa2, one notch above “junk” status, even though the plane maker’s first-quarter revenue beat expectations.

CEO Dave Calhoun said the company, facing several technical problems, has been slowing production in order to “drive improvements” in quality.

Humana shares lost 3.30% despite the health insurer exceeding first quarter profit expectations. Boston Scientific rose more than 6% after the medical device maker raised its annual profit forecast, and Hasbro gained 10% after the toy maker reported a smaller-than-expected drop in first-quarter sales and comfortably beat earnings estimates.

Texas Instruments rose more than 6% thanks to positive results, and Visa added almost 1% as first quarter data exceeded expectations.

On the other hand, Uber (-2.33%) and LYFT (-3.49%) fell after Tesla said it also planned to move into ride-sharing, while Enphase Energy slumped 3% on a weaker-than-expected outlook.

Billion-dollar deal for cloud computing and artificial intelligence

While Coca Cola signed with Microsoft a multi-billion dollar agreement to use its cloud computing and artificial intelligence services for five years.

Under the agreement, Microsoft and Coca-Cola will “co-experiment” with Azure OpenAI to allow customers to create chatbots and other AI services that run on Microsoft’s Azure cloud service. This includes testing how Copilot for Microsoft 365 would help improve productivity in the workplace.

Coca-Cola said it has already migrated all of its applications to Microsoft Azure, and most of its major independent bottling partners have followed suit.

Coca-Cola is currently exploring the use of AI-powered digital assistants on Azure OpenAI to “help employees improve customer experiences; optimize operations; encourage innovation; gain a competitive advantage; increase efficiency and discover new growth opportunities.”

Source: Ambito

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