Stocks close higher as all eyes turn to Tesla, Netflix: Stock market news today

Share prices closed higher on Wednesday as traders processed the initial financial reports from Goldman Sachs (GS) and looked forward to hearing the outcomes of Netflix (NFLX) and Tesla's (TSLA) earnings, which are set to be released later.

The S&P 500 index experienced a minor increase of 0.2%, meanwhile, the Dow Jones Industrial Average saw a slight rise of 0.3%. This marked the eighth consecutive day of positive performance for the Dow, driven by the earnings reports of certain regional banks. On the other hand, the Nasdaq Composite, which is primarily composed of technology-focused companies, remained relatively stable without significant changes.

The financial results for the second quarter have begun positively, as major players in Wall Street have reported better results than expected. This has led to a consecutive seventh day of gains for the Dow Jones Industrial Average on Tuesday. On Wednesday, Goldman Sachs took the stage first, announcing a significant decrease in profits after the CEO, David Solomon, predicted a challenging quarter ahead. As a result, the company's shares dropped by over 1% in early morning trading.

Following the closing bell, Netflix and Tesla are expected to release their financial results. They are the first among the prominent technology companies that have fueled a recent surge in stock prices. A key aspect to consider is whether the decline in inflation rates has influenced their profit margins, especially for Tesla, which specializes in electric vehicles.

Carvana's shares (CVNA) soared by over 30% following the announcement that the company has entered into an agreement to decrease its outstanding debt by over $1.2 billion. Although the used-car seller experienced a decline in sales during the second quarter compared to the previous year, they exceeded expectations according to an earnings report released earlier than scheduled.

The positive mood in earnings is boosting confidence that the US economy will steer clear of a recession, as optimism is already starting to build following last week's data indicating a decline in inflation.

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