Infrastructure gains drive Wall Street higher
The weekend passage of the $1 trillion infrastructure bill fueled buying on Monday Materials and cyclical stocks rallied. But a sharp slide in Tesla shares capped the S&P’s and Nasdaq’s gains.
The broad indexes moved slightly higher - enough for new record highs for all three. The blue-chip index finished three-tenths of a percent higher. The S&P 500 and the Nasdaq edged up about a tenth of a percent.
The S&P 500 rose for an eighth straight session, but Commonwealth Financial Network Chief Investment Officer Brad McMillan questions how much higher the markets can go.
“The questions really is what’s the catalyst once we finish up with the earnings season. We've seen some good news. We've seen the economy start to turn around a little bit. But a lot of the tailwind we had from federal stimulus, for example, in the third quarter earnings isn't necessarily going to be there in the 4th, so I think we're going to see some downbeat guidance.”
Shares of Tesla dropped almost 5%. CEO Elon Musk polled Twitter users, asking if he should sell a tenth of his stake in the electric vehicle maker to pay taxes. Around 58% voted yes.
Coty shares jumped nearly 15%. The cosmetics maker behind brands like Cover Girl and Max Factor raised its annual earnings forecast. It’s betting that more consumers will buy its cosmetics and fragrances as they return to offices and social events and as they visit duty-free stores amid the rebound in travel.
