- US stocks continued their rally on Tuesday, with the Dow Jones Industrial Average closing up 0.7%, the S&P 500 gaining over 1%, and the Nasdaq popping 1.6%
- Spotify was one of the day’s biggest gainers, climbing 14% after reporting a quarterly profit of €197 million and increased monthly active users and premium subscribers
- All eyes were on Tesla’s earnings report after the bell, with the company expected to show its first-ever decline in revenue amid concerns over slowing EV demand and tightening margins
The stock market continued its rally on Tuesday with strong earnings reports boosting major indexes.
Spotify Leads Market Higher
Audio streaming giant Spotify climbed 14 percent after reporting a quarterly profit of 197 million euros. The company gained 615 million monthly active users, up 19 percent. Premium subscribers rose 14 percent to 239 million.
After a period of wild spending, illustrated by Joe Rogan’s $100 million podcast deal, the streamer has focused on cost-cutting and profitability.
Tesla Earnings Ahead
Tesla was due to report earnings after the bell on Tuesday. The electric vehicle maker’s stock rose 2 percent ahead of the closely-watched report, which is expected to show Tesla’s first-ever revenue decline.
Tesla shares are down 40 percent this year on concerns over slowing EV demand and tightening margins. The company recently announced layoffs of 10 percent of its workforce. Product deliveries fell in Q1, the first year-over-year decline since 2020.
Trump Receives $12 Billion Stock Bonus
Former President Donald Trump was set to receive $36 million more shares of his social media company Truth Social on Tuesday. This will add another $12 billion to his net worth on paper.
The bonus was an earnout based on the stock trading above $17.50 for 20 days. Earnouts reward insiders when stocks hit performance thresholds after a merger.
Conclusion
Strong earnings from Spotify, UPS and other companies have driven a stock market rally this week. Attention now turns to big tech earnings from Meta, Alphabet and Microsoft later this week.
