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US Market extends gain on Tesla earnings

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Capital Market
Last Updated : Jul 22 2022 | 10:04 AM IST
The US share market finished volatile session notably higher on Thursday, 21 July 2022, on the back of better-than-expected quarterly results electric automaker Tesla which helped offset a slide in telecom and energy shares.

The volatility on Wall Street came as investors expressed some uncertainty about the outlook for the markets following the recent upward move and ahead of the Federal Reserve meeting next week where policymakers are expected to raise interest rates by 75 basis points.

At the close of trade, the Dow Jones Industrial Average index advanced 162.06 points, or 0.51%, to 32,036.90. The S&P500 index was up 39.05 points, or 1%, to 3,998.95. The tech-heavy Nasdaq Composite Index gained by 161.96 points, or 1.36%, to 12,059.61.

Total 9 of the 11 major sectors of the S&P 500 closed in positive territory, with consumer discretionary, heath care, materials, and information technology posting the biggest gains adding over 1% each. Falling oil prices hit the S&P 500 energy sector, which tumbled 1.7% to lead declines across the sectors.

Shares of Tesla surged 9.8% after the electric vehicle maker late on Wednesday posted better-than-expected quarterly results, benefiting from price increases for its cars and helped offset production challenges..

Telecom shares tumbled, with AT&T Inc leading losses after it cut cash flow forecast saying some subscribers were delaying bill payments

ECONOMIC NEWS: The Labor Department latest report showed that initial jobless claims unexpectedly rose to 251,000, an increase of 7,000 from the previous week's unrevised level of 244,000.

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A separate report released by the Federal Reserve Bank of Philadelphia showed regional manufacturing activity index slumped to a negative 12.3 in July from a negative 3.3 in June, with a negative reading indicating a contraction in regional manufacturing activity.

The Conference Board also released a report showing its leading economic index slumped by 0.8% in June after falling by a revised 0.6% in May.

Among Indian ADR, ICICI Bank added 1.3% to $19.81, Tata Motors fell 1.88% to $28.72, WNS Holdings added 4.47% to $82.25, Wipro added 2.76% to $5.21, HDFC Bank added 1.16% to $58.27, and INFOSYS added 1.28% to $19.81. Dr Reddy's Labs fell 0.25% to $55.52 and Azure Power Global fell 1.79% to $11.55.

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First Published: Jul 22 2022 | 8:22 AM IST

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