U.S. Stocks Reverse Course with Midday Rally: D.R. Horton, Alaska Air Group, and More Boost Stock Markets

On Thursday, April 18, 2024, U.S. equities experienced a midday rally, reversing course after a series of disappointing earnings reports that failed to meet expectations. The S&P 500, Dow, and Nasdaq all showed positive gains following the recent slump.

D.R. Horton shares soared after the homebuilder reported second-quarter earnings that surpassed estimates and raised its guidance due to increased sales resulting from a shortage in housing supply.

Alaska Air Group also saw its stock price increase after reporting better-than-expected results and guidance as travel demand continued to rise. This positive news had a ripple effect on other airline stocks as well.

Trump Media & Technology Group experienced a surge in its stock price for a second consecutive day after hitting an all-time low earlier in the week, following news about preventing short sellers from borrowing their stock.

On the flip side, Tesla shares declined after being downgraded by Deutsche Bank due to concerns over delays in production of the Model 2 and the company’s focus on its robotaxi venture. Equifax also saw a decrease in its stock price after posting guidance for the current quarter below expectations due to a slowdown in mortgage inquiries.

Snap-on shares fell after the toolmaker’s revenue fell short of estimates, attributed to a decrease in demand for power tools. Meanwhile, oil futures dropped while gold prices and the yield on the 10-year Treasury note went up. The U.S. dollar gained against the euro and yen but lost ground to the pound in currency markets