Here Are 3 Hot Things to Know About Stocks Right Now

  • The Dow Jones Industrial Average rebounded Thursday after plunging more than 600 points in the previous session and wiping out its gains for the year. The Nasdaq's fall on Wednesday pushed it into correction territory.
  • Tesla Inc. (TSLA - Get Report) jumped 7.6% on Thursday after surprising Wall Street with a profit in its third quarter.
  • Microsoft Corp. (MSFT - Get Report)  rose 4.7% after it posted fiscal first-quarter profit that topped analysts' estimates amid continued growth in its key cloud computing division.

Wall Street Overview

Stocks rebounded on Thursday, Oct. 25, as investors appeared hopeful a slate of major earnings reports would boost Wall Street following the previous session's collapse.

The Dow Jones Industrial Average was up 401 points, or 1.63%, to 24,984, the S&P 500 gained 1.86%, and the Nasdaq rose 2.95%, with tech and communication services stocks leading the charge.

On Wednesday, Oct. 24, the Dow declined 605 points, or 1.48%, to 24,586, the S&P 500 fell 3.08%, and the Nasdaq slumped 4.43%. The Dow fell into the red for the year and the Nasdaq slid into a correction amid concerns over weakening U.S. earnings growth, rising geopolitical tensions and the unknown outcome of trade disputes between Washington and its major economic partners.

Tesla Inc. (TSLA - Get Report) jumped 7.6% on Thursday after surprising Wall Street with a profit in its third quarter.

The electric vehicle company posted earnings of $1.75 a share. Adjusted profit was $2.90 a share, a swing from a year-earlier adjusted loss of $2.92. Revenue for the quarter was $6.8 billion, beating Wall Street's expectations of $6.32 billion.

In a letter to shareholders, the company said "sufficient Model 3 profitability was critical to make our business sustainable - something many argued would be impossible to achieve."

Microsoft Corp. (MSFT - Get Report) reported fiscal first-quarter earnings of $1.14 a share, beating analysts' estimates of 94 cents. The stock rose 4.7% on Thursday. Revenue for the software giant rose to $29.08 billion from $24.54 billion a year earlier and topped forecasts of $27.9 billion.

In Microsoft's Intelligent Cloud computing division, Azure sales rose 76%, helping sales in the division jump 24% to $8.6 billion. Microsoft's productivity and business unit, which includes its Office 365 suite of products, saw sales rise 19% to $9.8 billion while personal computing revenue, which includes Xbox gaming consoles, grew 15% to $10.7 billion.

Advanced Micro Devices Inc. (AMD - Get Report) plummeted 16% on Thursday after the chipmaker missed third-quarter earnings and revenue estimates, and issued soft guidance for the fourth quarter.

Comcast Corp. (CMCSA - Get Report) posted third-quarter earnings of 65 cents a share, beating estimates by 4 cents, as revenue of $22.14 billion also topped forecasts. Cable revenue was up 3.4% to $13.8 billion. The stock rose 5.1%.

Merck & Co. (MRK - Get Report) earned $1.19 a share on an adjusted basis in the third quarter vs. estimates of $1.12. The drugmaker also announced a $10 billion buyback authorization and increased its quarterly dividend to 55 cents a share. Shares fell 0.82%.

Bristol-Myers Squibb Co. (BMY - Get Report) posted stronger-than-expected third-quarter earnings and boosted its full-year profit outlook as sales of its key cancer treatment surged more than 40% despite a recent Food and Drug Administration decision that will delay Opdivo's expanded use. The stock was up 0.80%.

Twitter Inc. (TWTR - Get Report)  rose 15% after it posted stronger-than-expected third-earnings Thursday but said monthly active users fell a bit more than anticipated, suggesting moves by the micro-blogging website to limit hate speech and cull fake accounts were having an impact.

Monthly active users fell 4 million to 326 million, missing analysts' forecasts, and Twitter saw a 20% quarter-on-quarter decline in new sign-ups since it introduced new techniques for detecting potential malicious accounts.

Raytheon Co. (RTN - Get Report)  fell 3.4% despite the defense company reporting third-quarter earnings that beat Wall Street estimates and raising guidance.

Ford Motor Co. (F - Get Report)  rose 8.8% after the U.S. automaker reported third-quarter earnings and sales that beat analysts' expectations.  

Earnings were reported after the closing bell Thursday from Amazon.com Inc. (AMZN - Get Report)   (click here for the story), Alphabet Inc. (GOOGL - Get Report)   (click here) and Intel Corp. (INTC - Get Report)   (click here).

Amazon, Alphabet, Comcast and Raytheon are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.

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