Stock Market News: Tesla Drives Lower; Facebook Pays the Piper
The stock market gave up ground on Thursday as investors reacted to a large number of companies reporting earnings, as well as macroeconomic issues around the world. With dovish comments coming from European central bankers, most expect the Federal Reserve to follow suit next week with rate cuts of its own. As of 10:40 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 67 points to 27,203. The S&P 500 (SNPINDEX: ^GSPC) lost 6 points to 3,013, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) gave up 41 points to 8,280.
Earnings have been a big part of what's moved the market over the past couple of weeks, and some high-profile names delivered their most recent reports to give investors a chance to react. For Tesla (NASDAQ: TSLA), a significant drop stemmed from losses that were bigger than shareholders wanted to see -- even though they've started to show signs of improvement. Meanwhile, Facebook (NASDAQ: FB) confirmed that it'll pay a huge fine to regulators, and although the stock isn't suffering, further investigation of the social media giant is likely.
Shares of Tesla plunged almost 13% after the electric vehicle manufacturer reported its second-quarter financial results. Despite some signs of growth, the numbers were generally disappointing. Revenue jumped 59% to $6.35 billion, but that wasn't quite as big a rise as investors had anticipated. Meanwhile, an adjusted loss of $1.12 per share was significantly larger than the $0.36-per-share loss analysts had expected, even though it was a welcome reduction in red ink compared to much worse performance a year ago.
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