By Liz Moyer
Investing.com -- U.S. stocks rebounded on a surge in tech, as Tesla's better than expected earnings boosted the sector.
At 3:33 PM ET, the Dow Jones Industrial Average rose 52 points, or 0.2% while the S&P 500 was up 0.6% and the NASDAQ Composite was up 1.6%.
Tesla Inc (NASDAQ:TSLA) surged nearly 10% in late afternoon trading. Its quarter was affected by factory disruptions in China, where operations shut down for a while because of Covid, but it managed to beat expectations, anyway.
In economic news new jobless claims rose to 251,000 last week, the third weekly gain in a row and the first time above 250,000 since January.
Meanwhile, the European Central Bank raised interest rates by a half-percentage point, which was larger than the quarter-point move expected. It was the ECB’s first rate hike in more than a decade as it, too, tries to combat inflation. The Federal Reserve is expected to make another move on interest rates next week.
Corporate earnings continue to roll in, and for the most part, companies have been beating expectations.
American Airlines (NASDAQ:AAL) shares fell 8%. It forecast profit for the third quarter on the strength of travel demand, but said it would temper its capacity plans despite that demand.
AT&T Inc (NYSE:T) shares fell nearly 8% after the company said it noticed customers were paying their bills a few days later than before, suggesting households were grappling with budget crunches.
Oil fell. Crude Oil WTI Futures was down 3.5%, to $96.36 a barrel, while Brent Oil Futures crude fell 2.7%, to $103.94 a barrel. Gold Futures rose 0.9% to $1,715 an ounce.