Trending
NEW YORK (AP) -- Wall Street is weakening Thursday following mixed earnings reports from big companies and more signals the U.S. economy may be slowing.
The S&P 500 was 0.9% lower in late trading after drifting listlessly earlier this week. The Dow Jones Industrial Average was down 206 points, or 0.6%, at 33,690, as of 3:15 p.m. Eastern time, while the Nasdaq composite was 1% lower.
Tesla weighed heavily on the market for a second straight day on worries about how much profit it's making on each of its electric vehicles. It dropped 11% after reporting revenue for the first three months of the year that fell short of analysts' expectations as it repeatedly cut prices on its models.
Tesla's cutting prices "is good for inflation," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. "But for the market, the question has to be: You're cutting prices again, it seems like we're not seeing enough demand on the auto side."
"It's still working its way through the system, higher rates for everyone. It's more costly to buy a car, more costly to buy a house from a financing perspective."
Several banks also dropped after reporting weaker profits and revenue than expected, including KeyCorp and Zions Bancorp. The spotlight has been particularly harsh on smaller and mid-sized banks amid worries their customers may pull out deposits following the second- and third-largest U.S. bank failures in history last month.