Here's what happened on Wall Street Tuesday, Oct. 17.
The Dow Jones Industrial Average broke 23,000 for the first time in its history briefly Tuesday morning before giving back some of its gains. The index closed trading up 0.18%. Meanwhile, the S&P 500 gained 0.07% and the Nasdaq fell 0.01%.
Former Tesla Employees Detailed Unceremonious Firings
Former employees told CNBC that Tesla (TSLA) is trying to disguise the recent firings of employees as performance-related when really it's a cost-cutting measure.
The former workers detailed the unceremonious ways some of them were fired -- via email with no warning -- after between 400 and 700 people were fired Friday, as was reported by the San Jose Mercury News.
"Like all companies, Tesla conducts an annual performance review during which a manager and employee discuss the results that were achieved, as well as how those results were achieved, during the performance period. This includes both constructive feedback and recognition of top performers with additional compensation and equity awards, as well as promotions in many cases. As with any company, especially one of over 33,000 employees, performance reviews also occasionally result in employee departures. Tesla is continuing to grow and hire new employees around the world," Tesla said in a statement after news of the firings broke.
Spirit Increases Revenue Per Seat Mile Guidance
Spirit Airlines (SAVE) shares were up nearly 6% after the company announced that it was raising its third-quarter revenue per seat mile guidance, estimating that it will see the key metric decline 6.5% as opposed to its previous view of a 7% to 8.5% drop.
Only 6.1% of TVs Tuned In to ESPN Monday Night
ESPN's (DIS) Monday Night Football broadcast scored a 6.1 metered market rating from Nielsen, meaning only 6.1% of available televisions tuned into the broadcast, making last night's game the least watched of a turbulent season.
The number represents a 3% decline from last year's viewership during the same week.
Netflix Comes Back Down to Earth
Netflix shares were down 1% as investors shifted their focus from the company's strong subscriber growth to its earnings miss.
The company reported earnings of 29 cents per share in the third quarter, short of Wall Street's consensus 32 cents per share expectations.
Dows Sets Record High
UnitedHealth Gains 6% on Revenue Growth
Health insurer UnitedHealth (UNH) was up in morning trading after the company reported quarterly revenue growth in spite of its exit from Obamacare exchanges last year.
The company reported year-over-year UnitedHealthcare revenue growth of 9.6%, to $40.7 billion, driven by increased enrollment in employer-based plans as well as increases in Medicare and Medicaid.
The news is good for other insurers who took a hit last week after President Donald Trump canceled government subsidy payments to insurers participating in the Obamacare exchanges.
New Jersey Hopes to Lure Amazon to Newark With $7 Billion Incentive Package
Republican New Jersey Gov. Chris Christie joined with Democrat Sen. Corey Booker to announce the state's plans to offer a $7 billion tax incentive package to lure Amazon (AMZN) to Newark.
The politicians touted Newark's progress in public transportation, education institutions and technology as it courts Amazon's second headquarters.
The state will offer Amazon $5 billion in tax breaks over a 10-year period if the company employs 50,000 people, with an additional $1 billion coming from property tax abatement and another $1 billion in taxes waived for Amazon's Newark employees.
Commuting in Downtown New York Is About to Get More Interesting Thanks to GM
General Motors (GM) plans to deploy a fleet of autonomous vehicles in a five square mile radius in lower Manhattan. This would be the first time autonomous vehicles will be tested in the country's largest city.
The autonomous Chevy Bolt electric vehicles will be manned by a safety operator behind the wheel during the test phase.
2% Rev Increase Helps Goldman Beat Wall Street Estimates
Goldman Sachs (GS) shares were up over 1% premarket after the Wall Street bank reported a 2% increase in revenue to $8.33 billion, yielding earnings of $5.02 per share. Analysts were expecting the firm to report revenue of $7.54 billion with earnings of $4.17 per share.
Goldman's lack of a big commercial banking segment had prompted analysts to forecast that the bank would make a smaller profit this year than it did last year.
Goldman joined other large banks in reporting lower trading desk revenue. The firm said that revenue for the segment dropped 17% year over year.
Netflix Shares Rise Ahead of the Open
Shares of Netflix (NFLX) were rising premarket after the video streaming company reported that it added 5.3 million subscribers, well ahead of the 4.5 million consensus Wall Street expected. The company now boasts 115.6 million subscribers worldwide.
Netflix shares made a jump last Friday, ahead of Monday's earnings release, after analysts at Goldman Sachs and JP Morgan published bullish notes on the company following its decision to raise subscription rates.
U.S. stock futures were a mixed bag Tuesday morning, with Dow contracts showing signs of life while Nasdaq and S&P 500 futures traded in the red before the opening bell.
Asian markets were also mixed Tuesday, with Japan's Nikkei and the Hang Seng in Hong Kong both gaining ground while the Shanghai Composite retreated 0.19%.
In Europe, the FTSE 100 and DAX in Germany were both solidly in the green while the CAC40 in France was relatively flat with over four hours to go in trading.