Stock Market Today: Stocks Climb After Tesla Earnings, GDP
The electric vehicle maker reported record profit and revenue for the fourth quarter.
A choppy start for stocks on Thursday led to a solid finish as investors mulled over the latest batch of quarterly earnings and economic reports.
Tesla (TSLA) headlined a busy earnings calendar – and Wall Street cheered the electric vehicle maker's fourth-quarter results. Meanwhile, the latest gross domestic product (GDP) reading showed the U.S. economy grew at a faster-than-expected pace in the final three months of 2022, even as interest rates increased and inflation remained stubbornly high.
Tesla released its Q4 results late Wednesday, sending shares up 11% today. The company reported earnings of $1.19 per share on $24.3 billion in revenue – both record figures for TSLA. Consensus estimates were for earnings of $1.13 per share on $24.7 billion in sales. The carmaker also said it plans to "grow production as quickly as possible" in order to meet its target of 50% average annual growth.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
As for today's economic data, the Bureau of Economic Analysis said this morning that GDP grew at an annual rate of 2.9% in the fourth quarter, a quicker pace than what was seen in the third quarter. However, consumer spending slowed, rising 2.1% in Q4 vs. 2.3% in Q3.
Wall Street's top minds were quick to chime in on the GDP, including Carol Schleif, chief investment officer at BMO Family office. "Thursday's GDP report suggests that the economy is relatively strong even in the face of aggressive measures by the Federal Reserve to calm inflation," Schleif says. "Businesses and consumers are moderating their spending after the initial exuberant post-pandemic surge and we expect this slowing of momentum to allow the economy to tick along solidly but on a slower and more sustainable path."
At the close, the Nasdaq Composite was up 1.8% at 11,512, the S&P 500 was 1.1% higher at 4,060, and the Dow Jones Industrial Average had gained 0.6% to 33,949.
Chevron Unveils $75 Billion Buyback Program
Chevron (CVX) was one of the best Dow Jones stocks today – second only to Salesforce (CRM, +5.7%) – climbing 4.8% after the energy giant unveiled a massive share repurchase program. Specifically, CVX said its board of directors approved $75 billion in stock buybacks, with the program set to go into effect on April 1. The oil giant – well-known as being one of the best dividend stocks on Wall Street – also hiked its quarterly payout by 6% to $1.51 per share.
CVX's announcement and subsequent share-price move made energy the best-performing sector today (+3.2%), but this is just more of the same. Year-to-date, the energy sector is up more than 6%, building on 2022's impressive gains.
And there are plenty of potentially positive catalysts for oil stocks over the next few months, which could keep the wind at their back. These include China's reopening, the Biden administration ending the release of strategic petroleum reserves, and rising demand in the spring and summer months, says Louis Navellier, chairman and founder of Navellier & Associates. Continued gains could certainly benefit the best energy stocks, while energy ETFs would also reap the rewards.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Don't Leave Your Heirs an IRA Tax Bomb
Your traditional IRA has served you well, but when your heirs inherit it, watch out. Consider some of these strategies to minimize their tax burdens.
By Kelsey M. Simasko, Esq. Published
-
Five Ways to Maximize Your End-of-Year Philanthropy
To do the most good, pick the right charity, be smart about how you donate and consider giving something just as valuable as money: your time.
By Emily Glassman Published
-
Stock Market Today: The Dow Leads an Up Day for Stocks
Boeing, American Express and Nike were the best Dow stocks to close out the week.
By Karee Venema Published
-
Stock Market Today: Stocks End Higher in Whipsaw Session
The main indexes were volatile Thursday with Nvidia earnings in focus.
By Karee Venema Published
-
Why Is Warren Buffett Selling So Much Stock?
Berkshire Hathaway is dumping equities, hoarding cash and making market participants nervous.
By Dan Burrows Published
-
Fed Cuts Rates Again: What the Experts Are Saying
Federal Reserve The central bank continued to ease, but a new administration in Washington clouds the outlook for future policy moves.
By Dan Burrows Published
-
If You'd Put $1,000 Into Google Stock 20 Years Ago, Here's What You'd Have Today
Google parent Alphabet has been a market-beating machine for ages.
By Dan Burrows Published
-
Stock Market Today: Stocks Renew Rally Ahead of Mag 7 Earnings
The Dow Jones led the major indexes higher on the strength of old-school industrial stalwart 3M.
By David Dittman Published
-
Fed Goes Big With First Rate Cut: What the Experts Are Saying
Federal Reserve A slowing labor market prompted the Fed to start with a jumbo-sized reduction to borrowing costs.
By Dan Burrows Published
-
Tesla to Launch FSD in Europe and China: What to Know
Tesla stock is higher Thursday after the EV maker announced plans to launch its full self-driving driver assistance software in Europe and China in 2025. Here's what you need to know.
By Joey Solitro Published