By Noel Randewich and Devika Jain (Reuters) – The S&P 500 hit a record high on Monday, lifted by Tesla and bank stocks as investors awaited the start of the second-quarter earnings season and a batch of economic data. The Nasdaq also hit an all-time high before receding into negative territory. Seven of the 11 […]
Tesla lifts S&P 500 to record highs
By Noel Randewich and Devika Jain
(Reuters) – The S&P 500 hit a record high on Monday, lifted by Tesla and bank stocks as investors awaited the start of the second-quarter earnings season and a batch of economic data.
The Nasdaq also hit an all-time high before receding into negative territory.
Seven of the 11 major S&P sector indexes advanced; financials .SPSY and real estate .SPLRCR led the way.
Tesla TSLA.O jumped 3.6%. Tesla CEO Elon Musk insisted in court on Monday he does not control Tesla, and said he did not enjoy being the electric vehicle company’s chief executive as he took the stand to defend the company’s 2016 acquisition of SolarCity. (Full Story)
JPMorgan Chase JPM.N added almost 2%, and the two shares contributed more to the S&P 500’s gains than any other stocks.
The S&P 500 banks index .SPXBK added 1.5% ahead of quarterly earnings reports this week from major banks, including Goldman Sachs Group GS.N and JPMorgan on Tuesday.
Investors will closely watch quarterly reports for early clues on the how long the U.S. economic recovery may last, with June-quarter earnings per share for S&P 500 companies expected to rise 66%, according to IBES data from Refinitiv.
The benchmark index .SPX has rallied 16% so far this year, with some investors questioning how long the rally may last and concerned about a potential downturn.
“Earnings season is going to be warmly greeted as an opportunity for existing biases to be confirmed,” warned Mike Zigmont, head of trading and research at Harvest Volatility Management in New York. “Even if forecasts are not as rosy as what the most bullish had hoped, it’s all going to get rationalized away.”
Focus this week will also be on a series of economic reports, including headline U.S. inflation data and retail sales. As well, Federal Reserve Chair Jerome Powell is due to appear before Congress on Wednesday and Thursday for views on inflation.
Investors have been concerned about higher inflation and the spread of the Delta coronavirus variant in the past few sessions, with traders seesawing between economy linked-value stocks and tech-heavy growth names.
The S&P 500 growth index .IGX on Monday rose 0.15%, lagging behind the S&P 500 value index’s .IVX 0.39% rise.
In afternoon trade, the Dow Jones Industrial Average .DJI was up 0.3% at 34,974.06 points, while the S&P 500 .SPX gained 0.20% to 4,378.23.
The Nasdaq Composite .IXIC dropped -0.02% to 14,699.04.
Didi Global Inc DIDI.N dropped 6% after it confirmed China’s cyberspace administration notified app stores to remove the ride-hailing company’s 25 apps and said the move could impact its revenue in the region. (Full Story)
Virgin Galactic Holdings SPCE.N tumbled 15% as the space tourism company said it may sell up to $500 million worth of shares, a day after the company completed its first fully crewed test flight into space with billionaire founder Richard Branson on board. (Full Story)
Advancing issues outnumbered declining ones on the NYSE by a 1.24-to-1 ratio; on Nasdaq, a 1.17-to-1 ratio favored decliners.
The S&P 500 posted 63 new 52-week highs and no new lows; the Nasdaq Composite recorded 71 new highs and 31 new lows.
(Additional reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Maju Samuel)