The S&P 500 and the Dow ended higher on Monday helped by a largely upbeat earnings season, while the Nasdaq came under pressure from declines in some high-flying growth stocks, as the rotation into cyclical and "reopening" stocks continued.
The Dow added seven-tenth percent. The S&P rose 0.3%. The Nasdaq retreated a half percent.
Portfolio manager Adam Coons of Winthrop Capital Management says the economy is improving, but progress is patchy.
“Stimulus is finally getting through. People were beginning to spend. They're getting out into the economy. But what can they really spend money on? And right now, we see that as a limitation as concerts that we thought were going to, you know, open up, have not. There really isn't a big pipeline of something like movies, you know.”
Shares of Moderna got a shot in the arm, rising 4%. The drug maker said it will supply 34 million doses of its COVID-19 vaccine this year to the global COVAX program.
Tesla shares skidded 3%. Sources told Reuters the electric vehicle maker is boosting its engagement with Chinese regulators and beefing up its government relations team after it came under scrutiny over safety and customer service complaints in its second biggest market.
Estee Lauder was the S&P’s biggest decliner, sinking 8%. The cosmetics maker’s quarterly sales missed analysts’ targets. Makeup sales fell 13% as people continued to work from home.