By Investing.com — US stock futures point mostly higher following a day of declines on Wednesday that was marked by rising yields and falling megacap tech shares. Tesla (NASDAQ:TSLA) shares surge after the electric carmaker releases better-than-anticipated earnings and a rosy delivery outlook. Striking Boeing (NYSE:BA) workers in the US West Coast reject a revised pay offer from the aerospace group, extending a financially-damaging labor stoppage.
1. Futures broadly higher
US stock futures edged mostly on Thursday as investors assessed a raft of quarterly corporate earnings and climbing Treasury yields.
By 03:39 ET (07:39 GMT), the Dow futures contract was broadly unchanged, S&P 500 futures had edged up by 22 points or 0.4%, and Nasdaq 100 futures had risen by 154 points or 0.8%.
The main averages sank in the prior session, with declines in megacap tech stocks like artificial intelligence-darling Nvidia (NASDAQ:NVDA) and iPhone-maker Apple (NASDAQ:AAPL) denting the Nasdaq Composite in particular.
Weighing on sentiment was a jump in US Treasury yields to three-month highs. Analysts interpreted the uptick as a sign markets are starting to expect strong recent economic data and the upcoming US presidential election will persuade the Federal Reserve to roll out interest rate cuts at a slower pace.
2. Tesla shares surge on upbeat earnings and outlook
Shares in Tesla spiked in extended hours trading after the electric carmaking giant posted better-than-projected third-quarter profit and forecast a “slight” jump in deliveries this year.
Adjusted net income for the quarter increased by 8% compared to the year-ago period to $2.5 billion, topping estimates of $2.1 billion, thanks in part to a fall in operating expenses. Revenue, meanwhile, surged by 8% to $25.2 billion.
The results come as Tesla has spent several prior quarters grappling with a host of issues, including perceived sluggishness in global EV demand and a legal battle over Chief Executive Elon Musk’s pay package. Musk’s political stance, as well as a high-profile unveiling of Tesla’s “Cybercab” robotaxi that received tepid reviews from analysts, have also been in the spotlight.
Even still, the company said in a statement that it expects to achieve “slight growth” in vehicle deliveries in 2024, while Musk predicted cost cuts and lower interest rates would spur vehicle sales growth of 20% to 30% next year.
3. Boeing workers reject latest compensation offer
Striking Boeing machinists have rejected a revised contract offer, extending a crippling labor action that is placing heavy pressure on new CEO Kelly Ortberg’s plans to overhaul the jet manufacturer’s ailing finances.
Of the members of the International Association of Machinists and Aerospace Workers District 751 who voted, 64% said no to the new offer, which would have raised their pay by 35% over the next four years and provided greater retirement benefits. Following the decision, union leaders — who have called for a 40% pay bump and the return of defined-benefit pensions for the roughly 33,000 workers they represent — said they were ready to return to the negotiating table with Boeing.
Last month, 95% of the workers in the US Pacific Northwest rejected a prior offer and chose to go on strike.
On Wednesday, Ortberg called for a “fundamental culture change” at Boeing, which has also faced recent scrutiny over its safety record following a dangerous mid-air door plug blow-out on one of its planes earlier this year. Ortberg added the firm is at a “crossroads” after it posted a net loss of $6.17 billion in the third quarter, widening from a loss of $1.64 billion in the corresponding period in 2023.
4. Trump opens narrow lead over Harris – WSJ poll
Donald Trump has gained a slight advantage in the US presidential race, with voters taking a more positive view of his agenda and more a negative stance on rival Kamala Harris, according to a new national poll from The Wall Street Journal.
Trump is leading Harris by 2 percentage points, 47% to 45%, in the WSJ’s survey of 1,500 registered voters conducted Oct. 19-22. However, the lead lands within the poll’s margin of error, suggesting that either one of the candidates could still be ahead, the WSJ noted.
Voters’ views of the former president have improved, while their opinion of Harris — the current Vice President — have become more unfavorable, the poll showed.
Elsewhere, Trump also overtook Harris as the candidate Americans most trust with stewarding the economy in a separate Financial Times-University of Michigan Ross School of Business poll. It was first time Trump has led on this issue in the survey.
These were the latest polls to suggest support for Trump has expanded heading into the final weeks of campaigning before the Nov. 5 ballot. However, the race still remains tight, with both candidates virtually tied in several key battleground states that could heavily influence the outcome of the election.
5. Crude rises
Oil prices rose Thursday, rebounding after the previous session’s losses, on worries that an escalation of the conflict in the Middle East could impact supply from the key region.
By 03:39 ET, the Brent contract climbed 1.2% to $75.88 per barrel, while U.S. crude futures (WTI) traded 1.4% higher at $71.76 a barrel.
Israel launched strikes on Syrian capital Damascus early on Thursday, according to the Syrian state media, threatening an expansion of the conflict in the region amid growing anticipation of a strike against Iran in retaliation for an Oct. 1 attack.
Oil prices have gained nearly 4% so far this week, helping trim last week’s losses of than 7% on worries about Chinese demand and easing concerns about potential disruptions caused by fighting in the Middle East.
