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Stocks Start Higher Following A Good GDP Report, And The Nasdaq Increases 1% On Tesla News

Stocks increased on Thursday as investors analyzed the most recent round of business earnings, and the fourth quarter gross domestic product came in higher than expected.

While the Dow Jones Industrial Average gained 126 points, or 0.37%, the Nasdaq Composite increased by 1.5%. S&P 500 increased by 0.8%.

The fourth quarter saw the economy grow at an annualized pace of 2.9%, according to GDP data issued on Thursday, according to the Commerce Department. Although that is better than the 2.8% print predicted by analysts surveyed by Dow Jones, the reading is still slightly below than it was in the third quarter.

Meanwhile, earnings season continued, with Tesla’s good results boosting the Nasdaq and stocks of electric car companies. After reporting record sales and strong earnings, Tesla increased by 7%. Microsoft, Apple, Amazon, and Alphabet, battered technology giants, added more than 1% for each.

Additionally, airline profits were released, with Southwest reporting a larger-than-anticipated loss due to its holiday breakdown. A fourth-quarter improvement helped American Airlines rise.

Bill Northey, senior investment director at U.S. Bank, stated that we are currently in the middle of earnings season. Some good news and some bad news have been reported.

After launching a $75 billion share repurchasing program, Chevron gained 3% elsewhere.

Wall Street just had a choppy session. After losing more than 400 points earlier in the day, the Dow closed out Wednesday slightly higher. S&P and the Nasdaq Composite both came in marginally lower.

Now, attention turns to the Federal Reserve’s policy announcement for the following week. The institution is anticipated to announce a 25-basis point increase as promised

fends off rising inflation. Investors will be watching for any indication of how much longer the Fed plans to raise interest rates before cutting them.

Weekly and monthly advances are expected for all the main averages. The Dow and S&P are up 1.5% and 1.9%, respectively, so far this week. The Nasdaq is on track to have its best month since July after rising 3.1% this week.

Source (CNBC)

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