Wall Street Close: Stocks cheer risk-on mood, Tesla propels S&P 500 to fresh record top
- US stocks begin the key week on a positive note, Dow, S&P refresh all-time highs.
- Upbeat performance of techs, US stimulus hopes join Fed blackout period to help the bulls.
- A 100,000 car order from Hertz boosted Tesla, Facebook earnings fail to lure bulls.
US equities extend Friday’s upbeat performance, backed by sentiment-positive news from Tesla to kick-start the heavy reporting week. That said, US stimulus hopes and an absence of Fedspeak, not to forget mixed US data, also helped stock buyers to keep the reins.
Amid these plays, Dow Jones Industrial Average (DJIA) and S&P 500 refresh record top with 0.18% and 0.47% daily gains, closing respectively around 35,741 and 4,566, following a run-up to 35,787 and 4,572. Additionally, Nasdaq gained 0.90%, or 136 points to end Monday’s trading around 15,226.
Market sentiment improved on Monday, keeping Friday’s optimism, after headlines from China and concerning Evergrande joined hopes of US stimulus, backed by US President Joe Biden and House Speaker Nancy Pelosi. However, the market’s wait for the advance US Q3 GDP, up for publishing on Thursday, probed the bulls following Friday’s hawkish Fedspeak.
Tesla stocks refresh all-time high, rising 13% on a day following the Electric Vehicle (EV) order from Hertz. “The company’s market capitalization passed $1 trillion after Hertz Global agreed to buy 100,000 cars from the EV maker by the end of 2022,” said Reuters. On the other hand, Facebook registers a daily fall amid concerns over the prevalence of abusive content on its platform as well as softer Q3 revenues. It’s worth noting that shares of Pinterest dropped around 13% on Monday on the news that Paypal isn’t in to bid for the company.
Talking about US data, Dallas Fed Manufacturing Business Index rose past market consensus and prior readings in October but the Chicago Fed National Activity Index turned negative, -0.13 versus +0.05 previous readouts.
Looking forward, chatters from the Middle East, over US-Iran tussle and Saudi Arabia’s rejection to inflation further oil supplies, will join second-tier US data to entertain traders. However, major attention will be given to the earnings and the advance readings of the US Q3 GDP, up for publishing on Thursday.