U.S. stocks closed higher on Friday, shaking off some of their recent weakness, while Treasury yields pulled back from key levels. The Dow Jones Industrial Average, S&P 500, and the Nasdaq Composite all gained for the week, with the Nasdaq rising 2.6%, and the other two major indexes posting gains of more than 1%.
Boosting the market, C3.ai (AI) shot up 33.7% after earnings. For the third quarter of its fiscal year, the enterprise AI software firm reported a loss of 6 cents per share, which was more favorable than expected, and revenue of $66.7 million, which was better-than-anticipated. C3.ai stated that they anticipate positive revenue results for the current quarter.
Meanwhile, Treasury yields pulled back from highs touched over the last two sessions, with the 10-year Treasury yield (US10Y) down 11 basis points to 3.96%, and the 2-year yield (US2Y) down 4 basis points to 4.86%. On Friday, economic data revealed that the services sector had increased in February.
In other news, Tesla stock fell 5.9% after the electric vehicle maker unveiled its “Master Plan 3” at last night's Investor Day. Elon Musk, the CEO of the company, reported that a number of projects were discussed, such as eliminating the use of fossil fuels partially by “increasing battery energy density” and making “all transportation go electric.” Tesla is intent on “re-examining manufacturing,” which they think may result in a 30% gain in efficiency.
On the other hand, Snowflake tumbled 9% after its earnings report included a revenue outlook well below expectations. Splunk decreased by 7%, while Veeva Systems rose by 7.7%. Novavax plunged by up to 25% after voicing its concern about its capability of continuing operations until the following year, given its involvement in the production of a COVID-19 vaccine. Shares of Salesforce Inc (CRM) surged by approximately 15% in pre-market trading after the company, an expert in cloud-based business software, posted positive results for its fourth quarter and delivered a robust sales outlook for the first quarter and fiscal year 2024.
Overall, stocks were able to fight back amid reports Federal Reserve Bank of Atlanta President Raphael Bostic said the central bank could be in a position to pause tightening by mid- to late summer.
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