Wall Street rises at the open fueled by shares of Tesla and airlines

Por Bansari Mayur Kamdar y Sruthi Shankar

April 21 (Reuters) – U.S. stocks rose on Thursday as a string of encouraging results from companies including Tesla offset concerns about aggressive interest rate hikes that have kept bond yields high.

* Tesla, the world’s most valuable automaker, jumped 9% after its results beat Wall Street expectations as higher prices helped it weather supply chain chaos and rising costs.

* Meanwhile, United Airlines Holdings Inc and American Airlines Group Inc advanced 11.8% and 7.7%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand.

* The broader S&P 1500 Airlines index jumped 6.3% to its highest level since mid-November.

* The Dow Jones Industrial Average was up 252.44 points, or 0.72%, at 35,413.23, while the S&P 500 added 39.61 points, or 0.89%, at 4,499.06. The Nasdaq Composite gained 154.41 points, or 1.15%, to 13,607.47 points.

* The gains follow a sharp drop in US stocks on Wednesday after Netflix Inc. reported a loss of subscribers for the first time in a decade, prompting a sell-off in technology and growth stocks.

Related  The Bitcoin conference arrives for the second year in Miami with thousands of attendees

* “Earnings have been mixed so far, obviously you’ve seen the disappointment with Netflix. We’re probably going to come and go from day to day,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida. “People are still looking at the bond market and the Fed’s long-term monetary policy, it’s not just earnings.”

* Investors will focus on Federal Reserve Chairman Jerome Powell’s speech later in the day for clues on plans to tighten monetary policy, with many expecting the central bank to raise rates by 50 basis points to control runaway inflation.

(Reporting by Bansari Mayur Kamdar and Sruthi Shankar in Bengaluru, edited in Spanish by Manuel Farías)

News and Images Source