- Title: Tesla lifts Wall Street to close at record highs
- Date: 12th July 2021
- Summary: ALLENTOWN, PENNSYLVANIA, UNITED STATES (JULY 12, 2021) (REUTERS) (SOUNDBITE) (English) CFRA RESEARCH CHIEF INVESTMENT STRATEGIST, SAM STOVALL, SAYING: "It seems like we're just basically heading back to the same old, same old, because when we look to the Dow, looking to the S&P in positive territory, the Nasdaq sort of flirting with positive and negative. What concerns me, though, is that the Russell 2000 is in negative territory. So we have not had the participation that we have had in the past. On May 7th, when we had the most recent new high, 90% of the subindustries in the S&P were in positive territory for their 50-day moving average, a similar number for the stocks within the S&P 500. Whereas the most recent string of new highs, that number fell to about 30%. So fewer and fewer companies are participating in this rally, which is sort of like a canary in the coal mine, that maybe we are due for some sort of digestion of gains." WHITE FLASH (SOUNDBITE) (English) CFRA RESEARCH CHIEF INVESTMENT STRATEGIST SAM STOVALL SAYING: "The larger banks have a lot of activities in nontraditional banking areas, especially in fixed income and equity trading. So Goldman Sachs, JPMorgan Chase, etc. these larger companies might end up doing better than expected because of the volatility in the markets."
- Embargoed: 26th July 2021 21:13
- Keywords: COVID-19 Delta variant Dow Jones Nasdaq S&P 500 Wall Street coronavirus equities index indices markets shares stocks trading vaccine
- Location: NEW YORK, NEW YORK, AND ALLENTOWN, PENNSYLVANIA, UNITED STATES
- City: NEW YORK, NEW YORK, AND ALLENTOWN, PENNSYLVANIA, UNITED STATES
- Country: USA
- Topics: Economic Events,Equities Markets,United States
- Reuters ID: LVA002ELJE3IF
- Aspect Ratio: 16:9
- Story Text: Wall Street's main indexes closed at their highest levels ever on Monday (July 12), lifted by Tesla and bank stocks as investors eyed the start of the second-quarter earnings season and a batch of economic data.
Financials, communication services and real estate were among the leaders of the 11 S&P 500 sector indexes.
Tesla rallied and was a major contributor to gains in the S&P 500 and Nasdaq. CEO Elon Musk insisted in court on Monday he does not control Tesla, and he 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.
The S&P 500 banks index climbed ahead of quarterly earnings reports this week from major banks, including Goldman Sachs and JPMorgan on Tuesday (July 13). JPMorgan Chase and Goldman Sachs rallied and helped drive the Dow to record highs.
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 S&P 500 has rallied about 17% so far this year, with some investors questioning how long Wall Street's rally may last and concerned about a potential downturn.
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 (July 14) and Thursday (July 15) 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 a preference for economy linked-value stocks and tech-heavy growth names.
The Dow Jones Industrial Average rose 126.02 points, or 0.36%, to 34,996.18, the S&P 500 gained 15.08 points, or 0.35%, to 4,384.63 and the Nasdaq Composite added 31.32 points, or 0.21%, to 14,733.24.
(Production: Roselle Chen, Hyeongmi Kim, Fred Katayama)
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