Stocks rose on Tuesday as several companies reported strong earnings, with the Dow Jones Industrial Average climbing 0.69%, the S&P 500 ticking up 1.2%, and the Nasdaq Composite gaining 1.59%. Spotify saw a significant increase of 11.4% after reporting an earnings beat and issuing positive second-quarter guidance. Other notable increases included GE Aerospace and UPS climbing 8.3% and 2.4%, respectively, on strong earnings. According to FactSet data, 76% of companies that have reported earnings through Tuesday have beaten analysts’ expectations.
Tesla reported a major decline in revenue for the first quarter, dropping about 9% year-over-year, marking its largest decline since 2012. Despite this, the stock was up about 12% in premarket trading after CEO Elon Musk mentioned that production of new affordable EV models could start in either early 2025 or late this year, a change from the previously expected second half of 2025. Prior to this jump, Tesla shares had been down more than 40% this year due to various factors such as price cuts, competition with China, and weak deliveries.
Boeing reported a narrower-than-expected loss and less cash burn than analyst forecasts. The company mentioned that it is stabilizing its supply chain following the midair loss of a door plug on a 737 Max 9 plane in January. The FAA has restricted Boeing from increasing output of its Max planes and discovered several noncompliance issues within the company’s supply chain. Shares of Boeing were up approximately 4% shortly after the earnings release.
Oracle announced that it is relocating its world headquarters to Nashville, Tennessee, in order to be closer to a major health-care epicenter. Oracle’s chairman, Larry Ellison, stated that Nashville is the center of the health-care industry, a sector that the company is increasingly involved in. This move comes after Oracle moved its headquarters to Austin, Texas, in 2020 and followed its $28 billion acquisition of medical records software giant Cerner.
The Biden administration introduced two new rules requiring airlines to be more transparent about extra fees and issue refunds automatically rather than when requested by the customer. Airlines will now have to provide a full refund when flights are canceled or significantly altered, when baggage return is substantially delayed, and when customers do not receive paid inflight amenities like Wi-Fi. The other rule is aimed at eliminating hidden fees, an issue that the White House has been working to address. Transportation Secretary Pete Buttigieg emphasized the importance of airlines competing for passengers’ business rather than charging excessive fees.
In conclusion, the stock market saw a boost on Tuesday following strong earnings reports from various companies. Tesla reported a decline in revenue while hinting at potential changes in its EV production schedule. Boeing reported better-than-expected results amidst ongoing supply chain challenges. Oracle announced its move to Nashville to focus on the health-care industry, and the Biden administration introduced new rules to enhance transparency and fairness in the airline industry. These developments highlight the ongoing changes and challenges facing businesses and investors in the current market environment.
