Tesla Stock Leads the Index Higher as Earnings Impress

Major U.S. equities indexes were mixed on Thursday as investors digested the latest corporate earnings reports, headlined by strong financial results from electric vehicle (EV) giant Tesla (TSLA).

The S&P 500 added 0.2%, notching its first winning session so far this week, while the tech-heavy Nasdaq gained 0.8%. Meanwhile, the Dow slipped 0.3%, dragged down by underperformance from IBM (IBM) and several other constituents.

Tesla reported better-than-expected profits for the third quarter, and its shares powered 21.9% higher, outperforming all other S&P 500 stocks on Thursday. Although Tesla’s revenue came in slightly shy of consensus forecasts, an expansion of Tesla’s gross margin to 19.8% from 17.9% a year ago helped drive gains in net income. The company also reaffirmed its plans to launch a more affordable model, with production on track to begin in the first half of next year.

Molina Healthcare (MOH) shares skyrocketed 17.7% following the health insurer’s release of strong third-quarter financial results. The company’s sales and profits topped analysts’ forecasts, boosted by increased premium payouts for its government-backed Medicaid plans. Molina also reported a roughly 4% year-over-year increase in the number of people served through its Medicaid offerings.

Shares of West Pharmaceutical Services (WST) popped 15.4% after the provider of drug delivery systems and packaging products beat third-quarter sales and profit forecasts. The company also lifted its guidance for full-year earnings per share (EPS), citing robust demand for cartridges and syringes used in storing and administering injectable therapies.

Thursday’s weakest performance in the S&P 500 belonged to Newmont (NEM), the world’s largest gold producer, with shares plunging 14.7% after the mining giant reported lower-than-expected revenue and adjusted earnings for the third quarter. Higher costs contributed to Newmont’s lackluster performance. The company said its capital expenses rose 10% from the prior quarter, reflecting expansion projects in Australia and Argentina, while other assets acquired in last year’s takeover of Newcrest Mining also contributed to escalating costs.

Teradyne (TER), which provides testing systems and robotics solutions for semiconductor makers and other manufacturers, topped third-quarter sales and profit estimates. The firm also raised its guidance for the current quarter, citing strong demand for testing products from memory chipmakers and cloud-computing firms as they build out their artificial intelligence (AI) capabilities. However, Teradyne shares dropped 11% as analysts at TD Cowen cut their price target on the stock to $142 from $150, citing the company’s higher-than-anticipated projections for operating expenses over the coming year.

Carrier Global (CARR) shares slipped 8.8% after the air conditioning manufacturer and building automation supplier missed quarterly sales estimates as the company moved to exit its Fire & Security business. Carrier’s departure from the Fire & Security business also prompted the firm to trim its full-year sales and profit forecasts.