May 24, 2024

Image for article titled Tesla stock drives the S&P 500 and the Nasdaq higher — with Meta earnings up next

Photo: Guglielmo Mangiapane (Reuters)

The S&P 500 and Nasdaq opened higher on Wednesday as Tesla shares rallied after its earnings report. The EV maker’s stock was among the best performers on the S&P 500 Wednesday morning, climbing more than 12%.

With that, hopes have risen ahead of this week’s earnings release from Big Tech. All eyes are on the upcoming Meta and IBM announcements, which are set to be made after the closing bell. Meta’s stock was up in the morning as the Senate voted for a ban on rival TikTok. Microsoft and Google’ parent company Alphabet will release their earnings reports Thursday.

The Dow Jones Industrial Average was down 0.12% to 38,455 Wednesday morning. The S&P 500 jumped 0.3%, while Nasdaq added 0.7%.

Meanwhile, the 10-year Treasury yield is on the verge of hitting its highest level of the year. It rose to 4.657% Wednesday morning, its biggest jump in a week.

Tesla promises cheaper EVs, stock soars

In its latest earnings report, Tesla posted revenue of $21.3 billion for the first quarter, or about 45 cents per share. Analysts had forecast that it would report $22.15 billion in revenue, about 51 cents per share.

Despite its biggest revenue drop in 12 years, CEO Elon Musk that the company would start making a cheaper new electric vehicle by early next year. As a result, the stock was up more than 12%, to $161.86, Wednesday morning.

Visa stock soars on strong earnings report

Following a strong earnings report, Visa’s shares soared nearly 2%. The global payments technology company reported quarterly earnings of $2.51 per share, beating expectations of $2.43 per share. A year ago, earnings per share were $2.09. For the quarter ended March 2024, Visa reported revenues of $8.78 billion, which was 2.07% higher than expected.

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