Stocks rise as government bond yields decline, but weekly losses loom

Here are some of the stocks topping Yahoo Finance’s trending tickers page in morning trading on Friday:

Deckers Outside (DECK): The footwear company rose more than 12% Friday morning after reporting profits that beat expectations and raising its annual sales forecast. Notable results included a more than 35% increase in Hoka sales and a 13% increase in UGG brand sales.

Capri (CPRI): The fashion company’s shares plummeted after a judge blocked Michael Kors’ parent from merging with Coach owner Tapestry (TPR). Tapestry, meanwhile, rose more than 15% after the decision, which said the merging parties are close competitors and whose merger would lead to less competition in the “accessible luxury” handbag market.

Booz Allen Hamilton (BAH): The government and military contractor gained 13% after reporting second-quarter earnings that beat analyst expectations and rose 18% compared to the same period last year. While other consultancies are struggling as advances in AI technology could challenge the business model, Booz Allen has raised its guidance for the 2025 fiscal year, predicting revenue growth as high as 13%.

Capital one financial (COF): The bank’s shares rose 9% Friday morning after reporting profits that beat expectations on strong results from its credit card and auto lending businesses. Capital One is also trying to acquire Discover in a $35 billion deal, but the transaction is subject to regulatory scrutiny.

What seems clearer after Tesla’s latest earnings report is that it is primarily a car company for now, writes Yahoo Finance’s Julie Hyman. And the more successful a car company is, the more investors will give it to transform.

The numbers help tell the story: Tesla’s auto revenue last quarter was $20.02 billion, a full 79% of the total. Auto services accounted for 11%, and energy generation and storage about 9%.

It was profitability that really encouraged investors last quarter, reaching 17.1% for the auto, unsupervised credit segment. That has sent Tesla’s shares up 22%, marking the biggest single-day gain since May 2013, along with Musk’s predictions that deliveries will rise this year and growth next year will be “something like 20 % to 30%”.

It also sent Tesla shares back into the green this year after a bumpy road. In the two weeks since the company’s robotaxi event, the stock was down 11%.

Read more about Tesla’s improving profitability and focus on lowering vehicle-making costs.

U.S. stocks rose Friday morning as U.S. Treasury yields fell and uncertainty about the Fed’s next move fueled an earnings season in full swing.

The S&P 500 (^GSPC) rose about 0.5% after the benchmark went on a three-day losing streak. The Dow Jones Industrial Average (^DJI) rose 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) gained about 0.6%.

Stocks are rebounding somewhat after a decline in US bond yields eased recent pressure on risk appetite. The benchmark 10-year yield (^TNX) fell to around 4.18%, retreating from a three-month high above 4.25% midweek.

The S&P and the Dow Jones are on track to post losses this week.

Economic data: Durable goods orders (provisionally September); University of Michigan Consumer Sentiment, (October); Kansas City Fed Services activity (October).

Income: New York Community Bancorp (NYCB), Colgate-Palmolive (CL), Booz Allen Hamilton (BAH), Aon (AON), WisdomTree (WT), Piper Sandler (PIPR), Centene Corporation (CNC), Newell Brands (NWL).

Here are some of the biggest stories you missed last night and early this morning:

Tesla is still a car company – and that’s OK for now

Capri stock craters after $8.5 billion Tapestry deal gets blocked

Mercedes-Benz will step up cost savings as the slowdown in China drags down profits

Apple’s iPhone sales in China fall in the third quarter, Huawei shares rise

Chinese robotaxi startup WeRide is valued at $4.21 billion in its US IPO

BofA’s Hartnett says gold betting is on the rise ahead of the US election

Amazon Prime introduces new benefit to save gas