US stocks rise, led by banks and internet companies
New York – U.S. stocks moved broadly higher Thursday on Wall Street in morning trading, led by banks and internet companies.
Facebook and Bank of America rose. Tesla sank as vehicle deliveries fell sharply in the first quarter. Office Depot plunged after issuing a weak forecast.
The early gains put the S&P 500 on track to extend its winning streak into a sixth day.
Markets have been wobbly throughout the week as investors wait for the government’s jobs report on Friday and prepare for a new round of corporate earnings reports.
Investors are also keeping a close watch on the latest rounds of U.S.-China trade negotiations. The U.S. and China opened a ninth round of talks Wednesday, aiming to further narrow differences in a trade war that has deepened uncertainty for businesses and investors and cast a pall over the outlook for the global economy.
The trade war has intensified investor’s concerns about a global economic slowdown as they absorb a constant stream of mixed economic data. The latest report from the Labor Department shows that unemployment applications fell last week to their lowest level since 1969.
KEEPING SCORE: The Dow Jones Industrial Average rose 122 points, or 0.5%, to 26,326 as of 10:05 a.m. The S&P 500 index rose 0.2% and the Nasdaq rose 0.3%.
LOW BATTERY: Tesla fell 8% after the electric car maker told investors that assembly lines slowed and deliveries fell during the first quarter.
The company only churned out 77,100 vehicles to start the year, leaving it well off pace to meet CEO Elon Musk’s pledge to build 500,000 cars annually.
Musk already warned investors that the company will lose money during the first quarter as it cuts costs in order to lower the price of the Model 3, its first electric car designed for the mass market.
PAPER CUTS: Office Depot plunged 17% after it warned investors that first-quarter revenue would fall short of forecasts.
It also said a 20% jump in paper costs over the last 12 months will weigh down operating expenses. Its CompuCom information technology services unit also had a poor quarter, getting less revenue from existing customers.
The company has been struggling along with other traditional retailers to remake itself as it faces increased competition from online companies.
MESSY BURGERS: Red Robin Gourmet Burgers fell 7% after its CEO resigned as a key sales measure fell more sharply than expected during the first quarter.
CEO Denny Marie Post stepped down Wednesday after meeting with the board of directors. The company cited bad weather as the reason for the sharper-than-expected sales decline.