Investors had a mixed experience on Wednesday as Tesla’s rally couldn’t drive the stock market for long. The EV maker’s stock was among the best performers on the S&P 500, gaining over 11% in the late afternoon. Despite the biggest revenue drop in 12 years, shares rose Wednesday on the heels of Elon Musk’s announcement that cheaper EVs are coming soon.
With that, hopes have risen ahead of this week’s earnings releases from Big Tech. All eyes are on the upcoming Meta and IBM announcements, which are set to be made after the closing bell. Meta’s stock was up in the morning as the Senate voted for a ban on rival TikTok. Microsoft and Google parent company Alphabet will release their earnings reports on Thursday.
Late Wednesday afternoon, the Dow Jones Industrial Average was down 0.13% to 38,453. The S&P 500 dropped 0.11%, while Nasdaq shed 0.06%.
Tesla promises cheaper EVs, stock soars
In its latest earnings report, Tesla posted revenue of $21.3 billion for the first quarter, or about 45 cents per share. Analysts had forecast that it would report $22.15 billion in revenue, or about 51 cents per share.
During Tuesday’s earnings call, CEO Elon Musk promised that the company would start making a cheaper new electric vehicle by early next year. Tesla shares were up more than 11% by late Wednesday afternoon.
Biogen stock rises on sales of Alzheimer’s drug
Biogen stock jumped 3.6% during Wednesday afternoon trading after the Cambridge, Massachusetts-based pharmaceutical company reported higher than expected sales of its groundbreaking Alzheimer’s drug Leqembi.
Leqembi generated $19 million in sales in the first quarter of 2024, outperforming analyst expectations of $11 million, according to FactSet. That figure is more than triple the amount of sales the drug generated in the fourth quarter of 2023.
Boeing is down after releasing its earnings report
According to Boeing’s first quarter report, the company lost $343 million. It burned through billions of dollars of cash last quarter as it languished under intense scrutiny from U.S. regulators and attempted to mitigate concerns over quality issues.
The Arlington, Virginia-based firm burned through $3.93 billion over the first three months of 2024, far more than the $786 million it recorded during the same time last year, according to a Wednesday regulatory filing.
Boeing shares were down over 3% in late Wednesday afternoon.
Trump Media soars after alleging illegal trading to Congress
Trump Media & Technology Group is doubling down on claims that its stock is being illegally traded, this time bringing its concerns to congressional leaders. Trump Media CEO Devin Nunes called on Congress to carry out a “thorough and expeditious investigation” into what the company claims is “unlawful manipulation” of its stock. Nunes made the request in a letter dated Tuesday to the chairs of the House committees on Judiciary, Financial Services, Ways and Means, and Oversight and Reform.
Following the news, the stock was over 12% in the late afternoon.
The crypto market is in the red, too
Stock market bearishness spilled over to crypto markets as well. After enjoying some growth folowing Bitcoin’s halving event, the global crypto market was down nearly 3% Wednesday. The top cryptocurrency, Bitcoin, dropped 3%, trading at $64,000 in the late afternoon. Other major cryptocurrencies, such as Ether and Solana, also shed 2% and 5%, respectively.
–Bruce Gil, William Gavin and Rocio Fabbro contributed to this article.