S&P 500 rises to end three-day losing run, lifted by surge in Tesla: Live updates

The S&P 500 bounced back on Thursday, posting its first positive day in a week that has been beset by higher rates.

The S&P 500 added 0.21% to 5,809.86 and snapped a three-day run of losses. The Nasdaq Composite jumped 0.76% and closed at 18,415.49. The Dow Jones Industrial Average lost 140.59 points, or 0.33%, to end at 42,374.36. The blue-chip index notched a four-day losing streak, its first since June.

Tesla was the best-performing stock in the broad market index. The electric vehicle manufacturer surged nearly 22% after posting third-quarter results that beat analysts' expectations, registering its best day since 2013. Molina Healthcare gained 17.7% on better-than-expected earnings and revenue. Whirlpool and UPS also jumped after posting results.

Dragging the Dow was IBM, which fell more than 6% as the company's consulting revenue narrowly missed analysts' estimates. Boeing slipped 1.2% after its machinists rejected a new labor contract.

Roughly 160 S&P 500 companies have posted quarterly results so far, but their earnings growth has been underwhelming. The blended growth rate, which tracks reports that have already come out and estimates for those set to report, indicates an overall S&P 500 earnings growth rate of 3.4% from the year-earlier period, according to FactSet. That result came up short of analysts' projections.

Treasury yields moved lower, easing from three-month highs reached in the previous session. The 10-year Treasury yield topped the 4.25% threshold on Wednesday at the high of the session.

"The pressure on the market has been from the rate side," said Rob Haworth, senior investment strategist at U.S. Bank Asset Management. "That's really what has dampened equity market enthusiasm, and you haven't had big enough earnings news yet to drive the market to a new high … we're also not seeing as broad a momentum as we were seeing."

Stocks are coming off a losing session, with the Dow suffering its biggest one-day drop since early December, falling more than 400 points on Wednesday. The S&P 500 shed nearly 1% and the Nasdaq lost 1.6%.

S&P 500, Nasdaq close higher

The S&P 500 made a comeback on Thursday, ending the day's session 0.21% higher to close at 5,809.86.

The 30-stock Dow plunged 140.59 points, or 0.33%, to 42,374.36. The Nasdaq Composite rose 0.76%, ending at 18,415.49.

— Pia Singh

UBS remains optimistic on equities

The path forward for equities is still higher even with recent weakness, according to UBS.

The S&P 500 fell for a third straight day on Wednesday, after a move higher in Treasury yields put pressure in equities. Nevertheless, UBS' Solita Marcelli remains bullish on equities.

"We have signaled that investors should expect market volatility in the lead-up to the US presidential election, and the S&P 500 was sitting at a record high before the declines in recent days. As 5 November inches closer, market sentiment is likely to stay vulnerable," Marcelli wrote.

"But we maintain a positive outlook on US equities, and expect the S&P 500 to reach 6,600 by the end of next year," Marcelli added.

— Sarah Min

Stocks are bound for a relief rally after election, says Citi's head of global wealth

Citi's head of global wealth Andy Sieg is bullish on U.S. equities, saying he expects stocks can rally after the uncertainty from the election is lifted.

"There's going to be a relief rally that is most likely to happen. We saw it in 2016, we saw it in 2020," Sieg told CNBC's "Money Movers." "And when you think about the possibility for that relief rally, it's uncertainty leaving the market, being replaced by some certainty in terms of the path forward, it's rates coming down. And again, it's getting refocused on the fundamentals in the U.S., which are strong."

"So, we think the market has a ways to run," Sieg added.

— Sarah Min

S&P 500 could fall into election, Wolfe Research says

The S&P 500 could consolidate down to 5,670 as worries around the U.S. presidential election build, according to Wolfe Research. That would mark a decline of more than 2% from Wednesday's close.

While Wednesday's market action left a lot to be desired, Wolfe's Rob Ginsberg said action in some undesirable names can soothe investors.

"The good news in our view is that lower quality and highly shorted names have rolled over nicely after providing many with a bit of agita for the past few weeks," Ginsberg wrote to clients.

— Alex Harring

Sempra is an underappreciated, lagging utility, Jefferies says

San Diego-based utility Sempra was initiated as a buy with a $98 price target Thursday at Jefferies, which said "the market under-appreciates Sempra's growth potential with shares trailing the XLU by 15% YTD."

Analyst Julien Dumoulin-Smith sees Sempra delivering 9% compound annual earnings per share growth from 2024 to 2028 against management's own 6% to 8% target and the Street consensus of 7.5%. "Between Oncor and the LNG business, SRE has one of the highest growth profiles in the sector, and we see clear potential for the company to exceed earnings growth expectations again. We expect consistent outperformance above 8% guide top-end," Jefferies wrote.

The next catalyst is likely to come from Oncor, Sempra's transmission and distribution business in Texas, where the five-year capital spending plan likely contained in fourth-quarter earnings will expand the rate base, Dumoulin-Smith said. "Significant growth potential at Oncor. The Texas T&D Oncor biz is experiencing exponential growth and is one of the fastest-growing U.S. utilities. We see clear upside to mgmt.'s $24.2 Bn CapEx plan over 2024-28, with potentially as much as $5 Bn in extra spending."

Sempra shares have surged 19% over the past six months.

— Scott Schnipper

Tesla, Lilium, Molina Healthcare among stocks making biggest midday moves

Check out the companies making headlines in midday trading:

• Lilium — U.S.-listed shares fell more than 57% after the German air taxi startup said in a regulatory filing that its two main subsidiaries would file for insolvency, which is when debts cannot be repaid, in the next few days. Shares of Lilium, which is a penny stock, traded around the 25 cent mark Thursday afternoon.
• Tesla — The stock surged more than 20% following the electric vehicle maker's third-quarter profit beat. CEO Elon Musk forecast that the company will also see vehicle growth of 20% to 30% in 2025.
• Newmont — Shares plunged more than 14% on the back of the company's weaker-than-expected third-quarter earnings. Newmont reported adjusted earnings of 81 cents per share on revenue of $4.61 billion for the period, while analysts polled by FactSet were expecting 86 cents per share on $4.67 billion in revenue.

For the full list, read here.

— Lisa Kailai Han

Tesla shares poised for best postearnings performance since 2013

Tesla is tracking to see its biggest postearnings rally in more than a decade.

The electric vehicle stock has climbed more than 19% in midday trading. If that holds through session close, it will mark the stock's best daily performance following an earnings release since it soared more than 24% in May 2013, according to data from Bespoke Investment Group.

That would also be the stock's best one-day performance in more than three years. This pop has propelled Tesla's stock into positive territory on the year, though it is still notably underperforming the broader market.

Thursday's jump comes after the company beat Wall Street expectations for earnings per share, which one analyst called a "rare" occurrence. CEO Elon Musk said on the earnings call that, in his "best guess," vehicle growth will reach between 20% and 30% next year.

— Alex Harring

India outperforming emerging market peers, says IMF

India is the strongest-growing major emerging market this year, according to the International Monetary Fund, which projects the country will continue its relative outperformance in the coming years.

India has benefited from strong cyclical growth, IMF Asia and Pacific department director Krishna Srinivasan told reporters on Thursday. The fund projects India's economy will grow 7% this year and 6.5% in 2025.

"There is scope for even higher potential with more structure reforms, particular labor market reforms, some fiscal reforms and maybe an increased infrastructure push," Srinivasan said.

— Hakyung Kim

Bank of America downgrades Honeywell after earnings

Bank of America issued a rare after-the-bell downgrade Thursday, lowering its rating on Honeywell to neutral from buy. The bank also cut its price target on the stock to $230 per share from $250. The new target implies upside of just 4% from Wednesday's close.

The change came after the industrial giant reported mixed quarterly results. It fourth-quarter revenue guidance was also below analysts' expectations.

"Honeywell's long-cycle businesses (Aerospace; process) have historically provided above-average visibility on organic growth at the company. The company typically provides a 'first look' at the next year in 3Q earnings. Honeywell did not provide that outlook this year, suggesting a lack of visibility in its long-cycle portfolio," analyst Andrew Obin wrote.

"Honeywell still has decent assets within its portfolio. A new CFO in '25 should also help with messaging in addition to the portfolio transformation, but we believe the turnaround will take some time," he added.

— Fred Imbert

New home sales rose more than expected in September

New homes sold at a brisk pace in September while prices rose, the Census Bureau reported Thursday.

Single-family new-construction home sales totaled a seasonally adjusted annual rate of 738,000, up 4.1% from August's downwardly revised total and a 6.3% increase from a year ago. Economists surveyed by Dow Jones had been looking for 720,000.

The median sales price came to $426,300, an increase of more than $15,000.

— Jeff Cox

PMI readings show strength in services, improvement in manufacturing

A purchase managers' survey for October indicated stronger growth in the services sector while manufacturing pulled back again.

The S&P Global Flash US Composite indexes for the month showed a 55.3 reading, up slightly from September and matching the Dow Jones estimate. On the manufacturing side, the index came in at 47.8, a reading still in contraction territory but a half point better than September and above the 47.5 forecast.

The PMI measures the share of companies reporting expansion, so anything below 50 signals contraction.

Within the surveys, the prices-charged inflation measure hit its lowest since May 2020 and optimism about output touched a 29-month peak.

— Jeff Cox

S&P 500 opens lower on Thursday

Shortly after market open, the S&P 500 and Nasdaq Composite were up 0.3% and 0.6%, respectively. The Dow Jones Industrial Average lost about 106 points, or more than 0.2%.

— Pia Singh

Jobless claims slip as impacts from storms, strike ease

Initial filings for unemployment benefits receded last week as impacts faded from the recent hurricanes and the Boeing strike.

Jobless claims for the week ending Oct. 19 totaled a seasonally adjusted 227,000, down 15,000 from the previous week's upwardly revised level but well below the Dow Jones estimate for 245,000, the Labor Department reported Thursday.

However, continuing claims, which run a week behind, rose to just shy of 1.9 million, the highest since Nov. 13, 2021.

Claims did increase in storm-ravaged Florida by 4,275 but fell in North Carolina by 2,888, according to unadjusted data. Michigan, which has been hit by the Boeing impasse, saw a decline of 1,720.

— Jeff Cox

Tesla, UPS among the names making biggest premarket moves

These are some of the stocks moving during Thursday's premarket trading:

• Tesla — Shares of the electric vehicle maker soared nearly 13% due to the company's better-than-expected profit for the third quarter. The company also expects to see vehicle growth of 20% to 30% next year, according to CEO Elon Musk.
• United Parcel Service — The parcel delivery stock rose more than 7% on the heels of the company's third-quarter earnings and revenue beat. For the period, UPS earned $1.76 per share on $22.25 billion in revenue, above the LSEG consensus estimates of $1.63 in earnings per share and $22.14 billion in revenue.
• Lam Research — The stock rose more than 6% after the semiconductor equipment maker's fiscal first-quarter figures beat Wall Street expectations. The company posted earnings of 86 cents per share on revenue of $4.16 billion, above the consensus estimate of 80 cents per share and revenue of $4.05 billion, per LSEG.

Read here for the full list.

— Sean Conlon

Tesla leads S&P 500 and Nasdaq 100 in premarket after earnings report

Tesla shares rallied more than 13% in Thursday premarket trading after the electric vehicle maker beat Wall Street expectations for earnings per share in the third quarter.

The company earned an adjusted 72 cents per share, while analysts polled by LSEG had anticipated just 58 cents a share. On the other hand, Tesla's revenue of $25.18 billion came in under the consensus forecast of $25.37 billion.

CEO Elon Musk said on the earnings call that, as a "best guess," vehicle growth would reach between 20% and 30% next year. That is due to lower costs for vehicles and autonomy, he said.

With that gain, Tesla led both the S&P 500 and Nasdaq 100 in premarket trading.

— Alex Harring, Lora Kolodny

Honeywell falls on mixed third-quarter report

Honeywell shares were down 3% after the industrial giant reported mixed results for the third quarter.

The company earned $2.58 per share, beating an LSEG estimate of $2.50 per share. Revenue, however, came in at $9.73 billion, below a consensus forecast of $9.9 billion. Revenue for Honeywell's aerospace and industrial automation businesses came in slightly below estimates.

— Fred Imbert

KeyBanc downgrades Verizon

KeyBanc says Verizon stock's lack of upside potential ahead is pushing the firm to the sidelines.

"We see limited ability to meaningfully accelerate VCG [Verizon Consumer Group] postpaid phone net adds without incrementally raising device subsidies, which will impact profitability," analyst Brandon Nispel wrote Wednesday. "We also believe that VZ's acquisition of FYBR is a poor capital allocation decision given the alternative to repurchase shares."

The firm downgraded the telecommunications stock to sector weight from overweight and declined to provide a price target. Verizon stock has added about 14% in 2024.

— Brian Evans

UBS upgrades Regions Financial

Despite underperforming the KBW Nasdaq Bank Index (BKX) in 2024, UBS thinks Regions Financial stock could catch up.

"From here shares should benefit from relatively low expectations, less risk of regulatory related earnings hits and a low valuation (on earnings) vs. peers," analyst Matt O'Connor wrote Wednesday.

The analyst upgraded the bank holding stock to buy from hold, and raised its price target to $26 per share from $24. UBS' forecast implies nearly 10% upside from Wednesday's $23.64 close.

"Some risks appear largely addressed or have abated in our view," O'Connor added, including potentially higher costs from upgrading its lending and deposit systems."However, this has not been the case to date and mgmt has suggested costs will rise just 2-2.5% in 2025," he said.

— Brian Evans

Asia markets mostly fall as South Korea avoids technical recession

Asia-Pacific markets mostly fell Thursday after U.S. stocks dropped overnight, with the Dow Jones Industrial Average posting its worst day in more than a month.

In Asia, South Korea narrowly avoided a technical recession with its third-quarter GDP growing 0.1% quarter on quarter, following a 0.2% contraction in the second quarter. It, however, missed Reuters estimates of 0.5% growth.

On a year-on-year basis, South Korea's economy grew 1.5%, also slower than the 2% increase expected by economists.

In Hong Kong, shares of Beijing-based autonomous driving firm Horizon Robotics jumped as much as 37.8% as it made its trading debut on Thursday, but later pared gains to 6.26% up.

— Lim Hui Jie

European markets open slightly higher

European stocks opened up slightly higher on Thursday as traders reviewed another batch of earnings reports.

The pan-European Stoxx 600 was up 0.25% in opening trade, with the majority of major bourses and sectors trading in positive territory. Travel and leisure stocks added 1.13%, while retail shares led losses, dipping 0.24%.

The U.K.'s FTSE 100 index opened 0.55% higher at 8,304, Germany's DAX was up 0.47% at 19,460, France's CAC was up 0.48% at 7,533 and Italy's FTSE MIB was 0.45% higher at 34,888.

— Karen Gilchrist

9 of 11 sectors ended Wednesday lower

Nine of the 11 GICS sectors ended Wednesday's trading session lower.

The consumer discretionary sector was the biggest laggard and fell 1.8%. On the other hand, real estate gained 1% and was the best performer.

Ten of the 11 sectors are on pace to end the week in negative territory. Consumer discretionary stocks, down 2.7% across the board, were again the worst performers. The utilities sector was flat on the week and in the lead.

— Lisa Kailai Han, Christopher Hayes

Stocks making the biggest moves after the bell: Tesla, IBM and more

These are the stocks moving the most in after-hours trading:

• Tesla — Shares leapt 9%. The electric vehicle manufacturer reported third-quarter adjusted earnings of 72 cents per share, beating Wall Street's estimates of 58 cents, per LSEG.
• International Business Machines — The tech giant fell 3% on Wednesday after reporting mixed third-quarter results.
• T-Mobile U.S. — The telecommunications giant rose about 3% after posting a third-quarter earnings surprise to the upside.

Read the full list of stocks moving here.

— Lisa Kailai Han

S&P 500 futures, Nasdaq 100 futures open modestly higher

S&P 500 futures and Nasdaq 100 futures respectively opened 0.1% and 0.3% higher Wednesday afternoon.

On the other hand, futures tied to the Dow Jones Industrial Average slipped 0.1% shortly after 6 p.m. ET.

— Lisa Kailai Han