US close: Stocks end mixed, but Tesla lifts Nasdaq higher

US markets ended mixed on Thursday as investors digested a barrage of economic data and corporate earnings amid ongoing political uncertainty, but a surge in Tesla's stock pushed the Nasdaq firmly higher.

The Dow finished down 0.3% at 42,374.36, falling for its fourth straight day to its lowest since 8 October, while the S&P 500 edged 0.2% higher to 5,809.86. The Nasdaq however jumped 0.8% to 18,415.49.

Market sentiment over recent days has been dominated by rising political uncertainty ahead of the US elections – which remain too close to call – as well as nervousness around the future path of monetary policy worldwide after numerous Fed policymakers called for more gradual rate cuts.

"This election is too close to call, and the prospect of no clear winner cannot be ruled out," said Kathleen Brooks, research director at XTB. "The market may be pricing in a higher chance of a rate cut from the Fed in November, partly because no clear outcome from this election could hit economic sentiment and weigh on economic growth, forcing the Fed into more rate cuts."

Economic data in focus

On the macro front, US initial unemployment claims fell by 15,000 week-on-week to 227,000, according to the Labor Department, the lowest reading so far this month and well below market expectations for a flat print of 242,000.

The Chicago Fed's national activity index decreased to -0.28 in September, down from a revised reading of -0.01 in August.

The S&P Global composite PMI increased to 54.3 in October, up from 54.0 in September, signalling a "further solid rise in business activity to mark a robust start to the fourth quarter", S&P Global said. Confidence hit a 29-month high, though employment declined as spending remained cautious ahead of the election.

Meanwhile, new home sales jumped 4.1% to a seasonally adjusted annual rate of 738,000 in September, according to the Census Bureau. This was the highest reading since May 2023 and ahead of forecasts for a print of 720,000.

Tesla rockets

Shares in Tesla finished 22% higher, recording their best daily performance since 2013, on the back of a 17% jump in third-quarter net income. Helping sentiment was a bullish forecast by founder Elon Musk who expects the company to see vehicle growth of 20-30% in 2025.

Offshore drilling company Seadrill jumped 10% on reports it is in discussions with rival Transocean regarding a potential merger. According to Bloomberg, the two companies had discussed details about the potential structure of a tie-up, though no decisions have yet been made.

Intel gained 2% after emerging victorious in a lengthy legal battle with the EU, as the bloc's top court ruled in its favour, dismissing a €1.06bn antitrust fine. The ruling by the ECJ marked the conclusion of a dispute that started in 2009, when the European Commission accused Intel of abusing its market dominance by offering rebates to major computer manufacturers including Dell, HP and Lenovo, to favour its chips over those of rival AMD.

Tech peer IBM dropped 6% as third-quarter sales rose by just 1.5% in the third quarter to $14.97bn, missing the $15.07bn consensus forecast, as it guided to a similar top-line result in the fourth quarter.

Logistics firm United Parcel Service jumped 5% after beating quarterly profit expectations as the group benefitted from improved volumes and tight cost controls. UPS said adjusted profits had grown to $1.76 per share, ahead of analysts' estimates of $1.63 per share.

Dow Jones - Risers

Intel Corp. (INTC) $22.34 1.64%
Goldman Sachs Group Inc. (GS) $524.50 1.41%
McDonald's Corp. (MCD) $301.58 1.01%
Salesforce.Com Inc. (CRM) $286.76 0.82%
Home Depot Inc. (HD) $402.68 0.76%
JP Morgan Chase & Co. (JPM) $224.98 0.70%
Caterpillar Inc. (CAT) $387.06 0.34%
Amgen Inc. (AMGN) $315.69 0.25%
Microsoft Corp. (MSFT) $424.73 0.03%
Procter & Gamble Co. (PG) $169.62 0.02%

Dow Jones - Fallers

International Business Machines Corporation (CDI) (IBM) $218.39 -6.17%
Verizon Communications Inc. (VZ) $41.86 -2.33%
Johnson & Johnson (JNJ) $163.67 -1.32%
Nike Inc. (NKE) $79.04 -1.26%
Boeing Co. (BA) $155.20 -1.18%
3M Co. (MMM) $126.47 -1.13%
Coca-Cola Co. (KO) $67.30 -1.04%
Dow Chemical Co. (DOW) $50.99 -0.97%
Walt Disney Co. (DIS) $95.40 -0.87%
Unitedhealth Group Inc. (UNH) $560.81 -0.68%

S&P 500 - Risers

Whirlpool Corp. (WHR) $110.37 11.17%
CBRE Group Inc (CBRE) $133.50 8.43%
Raymond James Fin Corp. (RJF) $147.40 7.31%
United Parcel Service Inc. (UPS) $138.35 5.28%
Lam Research Corp. (LRCX) $76.57 5.09%
Laboratory Corporation of America Holdings (LH) $230.07 4.62%
Mattel Inc. (MAT) $18.57 4.44%
Align Technology Inc. (ALGN) $216.42 4.22%
Centene Corp. (CNC) $61.62 3.01%
FMC Technologies Inc. (FTI) $25.86 2.78%

S&P 500 - Fallers

Newmont Corporation (NEM) $49.25 -14.70%
IQVIA Holdings Inc. (IQV) $211.71 -7.27%
Harley-Davidson Inc. (HOG) $31.67 -7.21%
Rollins Inc. (ROL) $46.48 -6.57%
Textron Inc. (TXT) $81.49 -6.19%
International Business Machines Corporation (CDI) (IBM) $218.39 -6.17%
Tractor Supply Company (TSCO) $274.29 -6.09%
Hasbro Inc (HAS) $66.10 -6.01%
Southwest Airlines Co. (LUV) $29.02 -5.56%
Union Pacific Corp. (UNP) $230.75 -4.39%

Nasdaq 100 - Risers

Tesla Inc (TSLA) $260.48 21.92%
T-Mobile Us, Inc. (TMUS) $233.56 5.71%
Lam Research Corp. (LRCX) $76.57 5.09%
Align Technology Inc. (ALGN) $216.42 4.22%
Texas Instruments Inc (TXN) $206.61 2.41%
Gilead Sciences Inc. (GILD) $88.78 1.78%
Micron Technology Inc. (MU) $106.85 1.71%
DENTSPLY Sirona Inc. (XRAY) $24.41 1.67%
Intel Corp. (INTC) $22.34 1.64%
Expedia Group Inc. (EXPE) $160.45 1.32%

Nasdaq 100 - Fallers

Hasbro Inc (HAS) $66.10 -6.01%
Workday, Inc. (WDAY) $236.82 -2.16%
JD.com, Inc. (JD) $39.33 -1.67%
Cognizant Technology Solutions Corp. (CTSH) $74.86 -1.59%
CSX Corp. (CSX) $33.10 -1.46%
NetEase Inc. Ads (NTES) $78.89 -1.45%
Regeneron Pharmaceuticals Inc. (REGN) $928.90 -1.33%
Kraft Heinz Co. (KHC) $35.03 -1.32%
Broadcom Inc. (AVGO) $171.35 -1.24%
Idexx Laboratories Inc. (IDXX) $452.27 -1.23%