A strong profit report from SpaceX helps lift tech stocks and Wall Street

NEW YORK (AP) — The U.S. stock market rose Wednesday following strong profit reports from SpaceX, Capital One Financial and other big companies.

The S&P 500 added 0.6% and pulled within 0.8% of its all-time high set earlier this month. The Dow Jones Industrial Average gained 360 points, or 0.7%, and the Nasdaq composite climbed 1.1%.

SpaceX helped lead the market and climbed 7.8% after reporting a stronger profit for the summer than analysts expected. Elon Musk, who runs the company that makes money from artificial-intelligence technology, rockets and other businesses, also said that SpaceX took a step to consider a possible merger with Tesla, his electric-vehicle company.

Tesla rose 3.4% and was one of the strongest forces lifting the S&P 500.

Other stocks rallying on profit reports that topped analysts’ expectations included Capital One Financial, which rose 2.5%, and Winnebago Industries, which climbed 10.7%.

Expectations are high for profit growth for all kinds of companies during the summer, and they need to meet them to justify the big runs their stock prices have made despite worries about high inflation, higher interest rates and other challenges weighing on Wall Street.

Winnebago was able to report a more resilient profit than expected even as high fuel prices and frustration among U.S. shoppers restrain interest in recreational vehicles, for example. CEO Michael Happe said its more expensive towable RVs are a tougher sell, but customers are interested in its “more accessible” offerings.