Stocks climb as Treasury yields ease, but weekly losses loom

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

Deckers Outdoor (DECK): The footwear company surged more than 12% Friday morning after reporting earnings that beat expectations and raising its annual sales forecast. Among the standout results was a greater than 35% rise in Hoka sales and a 13% gain in sales of the UGG brand.

Capri (CPRI): Shares of the fashion company cratered after a judge blocked the parent of Michael Kors from merging with Coach owner Tapestry (TPR). Tapestry, meanwhile, jumped more than 15%, following the decision, which said that 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 consulting firms have struggled as the advancements of AI technology may challenge the business model, Booz Allen raised its fiscal 2025 outlook and projected revenue growth as high as 13%.

Capital One Financial (COF): Shares of the bank increased 9% Friday morning after reporting earnings that beat expectations on strong results from the credit-card and auto-lending businesses. Capital One is also seeking to acquire Discover in a $35 billion deal but the transaction is facing regulatory scrutiny.

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

The numbers help tell the story: Tesla’s automotive revenue was $20.02 billion last quarter, 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, coming in at 17.1% for the auto segment, ex-regulatory credits. That helped send Tesla’s stock soaring 22% for its biggest single-day gain since May 2013, together with Musk’s predictions that deliveries will rise this year and growth will be “something like 20% to 30%” next year.

It also sent Tesla shares back into the green for the year, after what’s been a bumpy road. In the two weeks since the company’s robotaxi event, the stock had slumped by 11%.

Read more about Tesla’s profitability improvement and the focus on cutting the cost to make vehicles.

US stocks rose on Friday morning as Treasury yields tipped lower, and as uncertainty over the Fed’s next move shadowed an earnings season in full swing.

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

Stocks are reviving somewhat as a pullback in US bond yields lifted some recent pressure on risk appetite. The benchmark 10-year yield (^TNX) slipped to around 4.18%, easing back from a three-month high above 4.25% hit midweek.

The S&P and the Dow are on track to record losses for the week.

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

Earnings: 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 may have missed overnight and early this morning:

Tesla is still a car company — and for now, that’s okay

Capri stock craters after $8.5 billion Tapestry deal blocked

Mercedes-Benz to step up cost cuts as China slowdown drags down earnings

Apple’s iPhone sales in China slip in Q3, Huawei share soars

Chinese robotaxi startup WeRide gets $4.21B valuation in US IPO

BofA’s Hartnett says bets on gold are rising before US election

Amazon Prime introduces new benefit to save on gas