US benchmark equity indexes closed mixed Wednesday, as investors assessed the latest corporate earnings and awaited an initial reading on first-quarter economic growth, scheduled to be released Thursday.
The Nasdaq Composite rose 0.1% to 15,712.8, while the Dow Jones Industrial Average fell 0.1% to 38,460.9. The S&P 500 was little changed at 5,071.6. Consumer staples led sectors gainers, while industrials paced the decliners.
In company news, Tesla (TSLA) shares jumped 12%, the best performer on the S&P 500 and the Nasdaq. The electric vehicle manufacturer said late Tuesday it planned to launch new models earlier than previously expected. The company's first-quarter results missed Wall Street's estimates.
BofA Securities said Wednesday that Tesla's management addressed key concerns heading into the quarterly print and "revitalized the growth narrative" for the company. The brokerage upgraded its rating on the EV maker's stock to buy from neutral.
Hasbro (HAS) was the joint-top gainer on the S&P 500, also up 12%, after the toy and game company posted stronger-than-expected first-quarter results while affirming its full-year guidance.
Old Dominion Freight Line (ODFL) was the worst performer on the S&P 500 and the Nasdaq, down 11%, following a first-quarter revenue miss.
Teledyne Technologies (TDY) shares also slumped 11% after the company reported first-quarter results below analysts' expectations and lowered its full-year adjusted earnings guidance.
The US 10-year yield rose 4.6 basis points to 4.64% Wednesday, while the two-year rate advanced 2.2 basis points to 4.93%.
Government data are likely to show Thursday that the US economy grew at a 2.5% annualized rate in the March quarter, which would mark a slowdown from a 3.4% pace in the last quarter of 2023, according to a Bloomberg-compiled consensus.
US durable goods orders rose more than projected in March, led by transportation equipment, while shipments were largely flat, official data showed Wednesday.
"A better-than-expected durable goods report underscores the relative strength of the economy perpetuated by a willingness and ability for consumers to spend and businesses to continue to invest," Stifel said in a note. "That being said, there are clearly signs of waning momentum and lingering fatigue amid today's relatively elevated rate environment and ongoing pressures from rising costs."
Mortgage applications in the US declined last week as rates across all loan types continued to increase, the Mortgage Bankers Association said.
West Texas Intermediate crude oil fell 0.5% to $82.92 per barrel Wednesday. Commercial crude stockpiles in the US declined by 6.4 million barrels to 453.6 million barrels through the week ended April 19, the Energy Information Administration said. The consensus estimate on Bloomberg was for a build of 2 million barrels.
Gold and silver dropped 0.4% each to $2,332.30 per troy ounce and $27.27 per ounce, respectively.