by Noel Randewich and Ankika Biswas
(Reuters) – The New York Stock Exchange ended higher on Thursday after the publication of official data showing stronger-than-expected growth in the U.S. economy in the fourth quarter, which fueled investor confidence, despite the decline of Tesla after a warning on its sales.
The Dow Jones index gained 0.64% to 38,049.13 points.
The broader S&P-500 gained 0.53% to 4,894.16 points.
The Nasdaq Composite advanced 0.18% to 15,510.50 points.
Optimism about the economy, the prospect of lower interest rates in the United States and enthusiasm about artificial intelligence have helped carry the S&P-500 to new consecutive records over the the week. According to the first estimate from the American Department of Commerce, published this Thursday, the gross domestic product (GDP) of the United States increased over the October-December period by 3.3%, against a consensus of 2%, thanks in particular to the consumption.
The American economy also defied the alarmist forecasts of the Federal Reserve (Fed), which feared a recession, in 2023, with growth of 2.5% over the year.
“GDP is a nice surprise for the market as there was no problematic inflation and the consumer continued to spend money,” commented Rob Haworth, chief investment officer at US Bank Asset Management Group.
“And so that supports the idea that company results and sales growth should improve over time,” he said.
Other data released during the day show that weekly unemployment claims in the United States increased more than expected.
Tesla, which published its results on Wednesday after the close, plunged 12%, to its lowest since last May, after its boss Elon Musk warned of a slowdown in the electric vehicle manufacturer’s sales growth.
The results of Wall Street’s “Magnificent Seven” should allow investors to determine whether the valuation of these giants is justified after their surge last year. Apple, Microsoft, Amazon, Alphabet and Meta Platforms will release their quarterly results next week.
Among S&P-500 companies that have already reported results, 82% have exceeded Wall Street expectations, according to LSEG data.
IBM rose 9.5% after announcing annual forecasts above estimates, as did American Airlines, up 10.3%.
Comcast gained 4.3% in the wake of better-than-expected quarterly results. Boeing declined 5.7% after the US Federal Aviation Administration banned the planemaker from accelerating production of its 737 MAX aircraft.
Tesla’s sharp decline affected two other companies in the sector, Rivian Automotive and Lucid Group, which also ended up in the red.
(French version Jean Terzian)
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