Tesla rally offsets cautious market, leaving mixed Wall Street indices

Major Wall Street indexes traded neutral on Thursday following a robust earnings report from Tesla Inc. (NASDAQ:TSLA). Early in trading, the Nasdaq Composite rose 0.5%, the S&P 500 rose 0.2% and the Dow Jones Industrial Average fell 0.3%.

After breaking a series of missed earnings forecasts, Tesla shares rose 14.5%, underscoring the company's positioning in the electric vehicle space. The electric car maker's strong performance contrasted with broader market sentiment after a decline in the consumer discretionary and technology sectors on Wednesday.

Bond yields also fell somewhat; The 2-year Treasury yield fell 2 basis points to 4.07% and the 10-year Treasury yield fell 2 basis points to 4.23%. Deutsche Bank strategist Jim Reid noted that markets were flat for three days amid falling bond and stock prices, suggesting investors are exercising caution ahead of an election.

Reid also mentioned that investors may change their expectations of an aggressive rate cut from the Federal Reserve given recent solid earnings reports from some big-name companies. Strong performances from other companies helped improve market sentiment and ease concerns about the current selloff.

This article first appeared on GuruFocus.