© Reuters.
Investing.com — U.S. stocks were mixed on Thursday after earnings reports from Netflix and Tesla.
At 10:59 ET (14:59 GMT), the rose 259 points or 0.7%, while the was down 0.3% and the was down 1.3%.
Tesla beat profit expectations; Netflix subscribers jump
Tesla, Inc. (NASDAQ:) shares fell more than 7.3% after it quarterly profit expectations but said its production could slow in the third quarter because it is upgrading factories. More price cuts for its electric vehicles could be coming as the EV giant tries to boost demand amid rising competition from other automakers, potentially squeezing profit margins further.
Netflix, Inc. (NASDAQ:) saw a burst of new subscribers in the second quarter after a password-sharing crackdown but fell slightly short of expectations. Shares fell 8.7%.
Pharmaceutical giant Johnson & Johnson (NYSE:) rose 6.1% after beating expectations on and raising its outlook for the full year.
Tech sector drives market gains
Tech stocks have surged this year, driving the Nasdaq up 37% since January, on the prospect that the is drawing closer to ending its interest rate increases, though the central bank is still expected to raise rates by another quarter of a percentage point next week.
The Dow notched its longest winning streak on Wednesday in nearly four years as earnings continue to pour out.
Investors eye next week’s Fed meeting
The Fed is trying to tame and get it back to its 2% target, with the latest reading showing prices in June were cooling faster than expected but still near 3%. Futures traders are mixed on whether the Fed will raise rates again this year after July. There’s about a 30% probability of another quarter-point hike in November, according to the CME’s FedWatch Tool.
Economic data indicates the economy is cooling but the labor market remains tight. New last week came in lower than expected, at 228,000. fell 3.3% from the prior month and reached 4.16 million annualized, which was below expectations for 4.2M.
