Wall Street rises on infrastructure gains as Tesla weighs indexes down
Wall Street stocks ended slightly higher on Monday, rising early after passage of a U.S. infrastructure spending bill but paring gains late as sliding Tesla shares weighed the indexes down.
Still, the S&P 500 and the Nasdaq extended their run of all-time closing highs to eight straight sessions. The blue-chip Dow notched its second consecutive record closing high.
“It has become a self-fulfilling prophesy,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
“Why are the indexes going up? Because people are buying,” Nolte added. “Why are they buying? Because the indexes going up.”
Tesla Inc was the heaviest weight on the S&P 500. Its shares fell 4.9% following CEO Elon Musk’s Twitter poll on whether he should sell about 10% of his holdings of stock in the electric automaker company he founded. The poll garnered more than 3.5 million votes, with 57.9% voting “Yes”.
Economically sensitive cyclicals and chips led the charge higher, with the Philadelphia SE Semiconductor index also hitting a record high close.
Stocks on Wall Street ended slightly higher on Monday, gaining early in the day as investors cheered passage of a U.S. infrastructure spending bill, but paring gains late as sliding Tesla shares weighed the indexes down. Fred Katayama reports.
Industrials and materials got a boost after the U.S. Congress passed President Joe Biden’s $1 trillion infrastructure spending bill on Saturday.
“Over the weekend we got another trillion dollars thrown at the economy which is already running hot,” Nolte said. “So investors are looking at that as a very good thing for equity markets.”
Caterpillar Inc, Cleveland-Cliffs Inc, Freeport McMoRan and U.S. Steel Corp were among companies riding the wave to solid gains, between 2.7% and 6.5%.
Lawmakers now turn to Biden’s social spending bill, with the House of Representatives expected to vote on the measure next week, according to White House economic adviser Brian Deese.
The Dow Jones Industrial Average rose 104.27 points, or 0.29%, to 36,432.22, the S&P 500 gained 4.17 points, or 0.09%, to 4,701.7 and the Nasdaq Composite added 10.77 points, or 0.07%, to 15,982.36.
Among the 11 major sectors in the S&P 500, materials gained the most at 1.2% while utilities suffered the session’s largest percentage loss.
The third-quarter reporting season has reached the final stretch, with 445 of the companies in the S&P 500 having reported as of Friday. Of those, 81% have come in above analyst expectations, according to Refinitiv.
Cryptocurrency and blockchain-related stocks, including those of Coinbase Global, Riot Blockchain, Marathon Digital Holdings and MicroStrategy Inc rose between 5% and 18%, as ether scaled new peaks and bitcoin neared a record high.
Shares of cosmetics maker Coty Inc surged 15.1% after the company hiked annual organic sales forecast.
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Advancing issues outnumbered declining ones on the NYSE by a 1.37-to-1 ratio; on Nasdaq, a 1.21-to-1 ratio favored advancers.
The S&P 500 posted 50 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 208 new highs and 54 new lows.
Volume on U.S. exchanges was 11.00 billion shares, compared with the 10.66 billion average over the last 20 trading days.
(Reporting by Stephen Culp; additional reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by David Gregorio)
