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Tesla jumps after strong sales forecast

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UPS advances following quarterly profit beat

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Boeing ( BA ) down after workers reject latest contract

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Weekly jobless claims lower than forecasts

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Indexes: Dow down 0.37%, S&P 500 up 0.14%, Nasdaq up 0.39%

(Updated at 09:50 a.m. ET/1350 GMT)

By Lisa Pauline Mattackal and Purvi Agarwal

Oct 24 (Reuters) -

The S&P 500 and the Nasdaq rebounded on Thursday, after

Tesla's upbeat earnings forecast lifted market sentiment

following a selloff in the previous session, kicking off megacap

results on a promising note.

Shares of the company soared nearly 16.7%, with the EV-maker

set to add more than $100 billion to its market capitalization,

after it reported robust third-quarter profits and surprised

investors with a prediction of 20% to 30% sales growth next

year.

This helped take the Consumer Discretionary sector

2.4% higher, topping the S&P 500's 11 sectors.

The optimism spread to other growth stocks, with Nvidia ( NVDA )

rising 0.8% and Meta Platforms ( META ) gaining 0.6%.

On the flip side, Materials was at the bottom,

with a 1% loss, dragged down by Newmont ( NEM ) as higher costs

and weaker Nevada output saw it miss

profit

estimates.

IBM ( IBM ) lost almost 7% after missing estimates for

third-quarter revenue, weighing on the blue-chip Dow.

Boeing ( BA ) dropped 1.9% after factory workers voted on

Wednesday to reject a contract offer and continue a more than

five-week-long strike. Honeywell's ( HON ) 3.8% decline after it

forecast annual sales below estimates also added to the Dow's

losses.

The Dow Jones Industrial Average fell 156.57

points, or 0.37%, to 42,358.38, the S&P 500 gained 7.94

points, or 0.14%, to 5,805.36 and the Nasdaq Composite

gained 70.52 points, or 0.39%, to 18,347.18.

Wall Street ended lower on Wednesday, with the benchmark S&P

500 notching its third straight session of decline and the

Nasdaq logging its worst day since early September.

Stocks have eased from record levels over the past few

sessions due to a reassessment of bets on the Federal Reserve's

rate cuts, rising Treasury yields, corporate earnings and

uncertainty surrounding the upcoming U.S. election.

The yield on benchmark 10-year Treasury bonds eased slightly

on the day, but was still trading around its highest since late

July. It touched 4.26% on Wednesday.

"We're coming into the day after having sold off a bit

every day this week. With yields taking a breather and Tesla's

positive results and guidance, markets may well be able to find

some tailwinds after having been down this week," said Art

Hogan, chief market strategist at B Riley Wealth.

Meanwhile, investor focus returned to earnings season, with

UPS adding 7.6% after the parcel service provider

reported a rise in third-quarter profit, on rebounding volumes

and cost cuts. Rival FedEx ( FDX ) was up 2.4%.

Southwest Airlines ( LUV ) dipped 2.5%, while American

Airlines gained 3.4% after reporting earnings.

Around 32% of S&P 500 companies have reported quarterly

results so far, according to data compiled by LSEG, with 79%

beating earnings estimates.

On the economic front, S&P Global's flash PMI data

showed U.S.

business activity

increased in October, amid strong demand, and firms raised

prices for goods and services at the slowest pace in nearly

four-and-a-half years. Weekly

jobless claims

also fell unexpectedly for the week ended Oct. 19.

Advancing issues outnumbered decliners by a 1.7-to-1

ratio on the NYSE, and by a 1.44-to-1 ratio on the Nasdaq.

The S&P 500 posted 29 new 52-week highs and no new lows,

while the Nasdaq Composite recorded 38 new highs and 25 new

lows.