Futures edge up as GDP growth surges, Tesla slides

US stock futures were higher on Thursday despite downbeat earnings from Tesla (TSLA) and following a hotter-than-expected US economic growth reading.

Dow Jones Industrial Average (^DJI) futures were up slightly, while S&P 500 (^GSPC) futures were up slightly following the benchmark’s fourth-in-a-row record close logged on Wednesday. Futures on the tech-heavy Nasdaq 100 (^NDX) rose about 0.4%.

An advance estimate of fourth quarter US gross domestic product (GDP) released on Thursday morning showed the economy grew at an annualized pace of 3.3% during the period, much faster than the annualized pace of 2% expected by economists.

Tesla warned of “notably” slower EV production growth in quarterly results that missed on profit, with CEO Elon Musk pointing to the risk Chinese carmakers will “demolish” rivals in the absence of trade curbs. Shares of the EV maker dropped 8% in premarket trading, further underperforming the other Magnificent Seven tech-centered stocks that have driven the S&P 500’s rally.

Results from Intel (INTC) are an after-hours highlight in the flood of reports, with Wall Street on watch for an AI boost to the chipmaker. Eyes will also be on American Airlines (AAL), Alaska Airlines (ALK), and Southwest Airlines (LUV) results for signs of impact after a Boeing (BA) door plug flaw grounded planes.

The FAA on Wednesday gave the go-ahead for those 737 Max 9 jets to return to service once airlines complete safety checks. But the authority also told Boeing to freeze any planned increases in production of the model, spelling disruption for its customers and suppliers and helping drive shares lower.

Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards

Live1 update

  • US economy grows at 3.3% rate in Q4, topping estimates

    The US economy continues to impress.

    The first look at fourth quarter GDP growth released Thursday showed the economy grew at an annualized pace of 3.3% in the final three months of 2023. Economists had expected growth to come in at a rate of 2%, according to data from Bloomberg.

    With this reading, the initial estimate on cumulative GDP growth for 2023 shows the economy grew 2.5% last year, an acceleration from 1.9% growth seen in 2022. The economy grew in all four quarters of the year and has now expanded for six quarters in a row.

    In its release, the BEA said the fourth quarter’s growth was driven by “increases in consumer spending, exports, state and local government spending, nonresidential fixed investment, federal government spending, private inventory investment, and residential fixed investment.”

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