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Tesla lifts Nasdaq to record-high close, S&P 500 dips

EconomyJun 23, 2021 06:47PM ET
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© Reuters. FILE PHOTO: The New York Stock Exchange is pictured in the Manhattan borough of New York City, New York, U.S., April 16, 2021. REUTERS/Carlo Allegri

By Noel Randewich and Devik Jain

(Reuters) - The Nasdaq climbed to a record-high close on Wednesday, fueled by a rally in Tesla (NASDAQ:TSLA) Inc, while the S&P 500 dipped, even as investors cheered data that showed a record peak for U.S. factory activity in June.

Gains in Nvidia (NASDAQ:NVDA) Corp and Facebook Inc (NASDAQ:FB) extended a recent rebound in top-shelf growth stocks that fell out of favor in recent months as investors focused on companies expected to do well as the economy recovers from the pandemic.

Data firm IHS Markit said its flash U.S. manufacturing Purchasing Managers' Index rose to a reading of 62.6 this month, beating estimates of 61.5, but manufacturers are still struggling to secure raw materials and qualified workers, substantially raising prices.

The "high level of today's surveys will provide some confirmation for the Fed that the time to begin taking its foot off the accelerator is not far away," said Jai Malhi, global market strategist at J.P. Morgan Asset Management.

On Tuesday, Fed Chair Jerome Powell reaffirmed the central bank's intent not to raise interest rates too quickly, based only on the fear of coming inflation.

Powell's comments follow the Fed's projection a week ago of an increase in interest rates as soon as 2023, sooner than anticipated. Since then, growth stocks, including major tech names like Tesla and Nvidia, have mostly rallied and outperformed value stocks, like banks and materials companies.

"People are plowing money into what has worked. People are basically momentum-chasing and they're using the last three years of performance to figure out what to chase," said Mike Zigmont, head of trading and research at Harvest Volatility Management in New York.

Eight of the 11 major S&P sector indexes fell, with utilities down about 1% and leading the way lower, followed by a 0.6% dip in materials.

Tesla jumped 5.3% after the electric vehicle maker said it had opened a solar-powered charging station with on-site power storage in the Tibetan capital Lhasa, its first such facility in China. That trimmed the stock's loss in 2021 to about 7%.

Extending investors' recent preference for growth stocks, the S&P 500 growth index edged up 0.01%, while the value index dipped 0.24%.

The Dow Jones Industrial Average fell 0.21% to end at 33,874.24 points, while the S&P 500 lost 0.11% to 4,241.84.

The Nasdaq Composite climbed 0.13% to 14,271.73.

The S&P 500 has gained about 13% in 2021, while the Nasdaq and Dow are up about 11%.

Nikola Corp rallied 4.3% after the electric and hydrogen vehicle maker said it is investing $50 million in Wabash Valley Resources LLC to produce clean hydrogen in the U.S. Midwest for its zero-emission trucks.

Among so-called meme stocks, software firm Alfi Inc tumbled 26% after more than doubling in value in the prior session, while Torchlight Energy Resources (NASDAQ:TRCH) Inc slumped 30%, tumbling for a second day after announcing an upsized stock offering.

Advancing issues outnumbered declining ones on the NYSE by a 1.14-to-1 ratio; on Nasdaq, a 1.42-to-1 ratio favored advancers.

The S&P 500 posted 33 new 52-week highs and no new lows; the Nasdaq Composite recorded 91 new highs and 28 new lows.

Volume on U.S. exchanges was 9.3 billion shares, compared with the 11.1 billion average over the last 20 trading days.

Tesla lifts Nasdaq to record-high close, S&P 500 dips
 

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Comments (5)
Wills tina
Wills tina Jun 23, 2021 3:23PM ET
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🙄
Jon Bal
Jon Bal Jun 23, 2021 1:28PM ET
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even used cars are an appreciating asset now
Steffen vdm
Steffen vdm Jun 23, 2021 10:19AM ET
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Come on everybody, put your fingers in your ears, close your eyes and sing out loud "lala lala". Just ignore everything you see and hear around you. 🙈 🙉
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Rob Fordham
Rob Fordham Jun 23, 2021 10:19AM ET
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Well that is one way to look at it but unemplyment was because of pandemic which is going away same for ur SME argument it killed many small businesses but more will and are coming back. Of course with supply chain interupted for 18 months we have inflation and housing increses we just went thru a once in a generation event and it will take time to normalize and the fed had to act during that event or it would have been much worse. But we are growing as an economy and all indicaters are the gdp to debt ratio will come down as fed tightens and gdp grows. It is not all roses but it is pretty good
Thi Tran
Thi Tran Jun 23, 2021 10:19AM ET
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A good investor will react to the future, an amator only sees the present market.
Nick Leeds
Nick Leeds Jun 23, 2021 10:19AM ET
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sure these businesses are 'coming back' and rasing prices much more than the reported inflation figure of 4,2% ..
Jouni Matero
Jouni Matero Jun 23, 2021 10:19AM ET
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You repeat the same mantra as analysts, "record sales and record revenues". There are thousands of companies in market and when few biggest notable ones make records, it's suddenly all companies. Just like https://investing.com only informs of few ones beating estimates but all these pros ignore rest of the companies of which most are either doing worse or even suffering. And when you say booming economy, it's all fully loaded with funny money and has nothing to do with real economy. Let's see what happens when (hopefully) they stop printing it. Sounds like you're living in lalala land.
youtube youtube
youtube youtube Jun 23, 2021 10:19AM ET
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what do you want to hear? tesla crashed, naaaa, Starlink is coming and tesla investors are the first to buy, it's gonna hurt you soo much
Jouni Matero
Jouni Matero Jun 23, 2021 10:02AM ET
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No matter what data is ahead, even toilet usage percentage, it's data anyways and up NQ goes. No fraud, absolutely not. Lol.
Ravinder Gulati
Ravinder Gulati Jun 23, 2021 10:02AM ET
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Haha. NQ needs a doctor for brain therapy
Milan Sawicki
Milan Sawicki Jun 23, 2021 10:02AM ET
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unless it's inflation fears that already went away
Stan Smith
Stan Smith Jun 23, 2021 9:03AM ET
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???Wait , what , How??? Fed's Own Inflation Measure Growing at an Annualized Rate of 15%
Ronald Warren
Ronald Warren Jun 23, 2021 9:03AM ET
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It's all Madness!! I've long thought that the only way to absolve world debt would be to sign on with a one world currency. All debts eliminated and funds distributed according to GDP.All the central banks are pumping funny money like nobody's business and no one cares. The U.S. government has spent itself into oblivion with no way out!! Keep printing/Keep spending. The digital monetary system will be here soon. Our nation will rue the day that it loses it's status as the world's reserve currency.
Carlos GV
Carlos GV Jun 23, 2021 9:03AM ET
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"rue the day"... Margaret Thatcher used this phrase a lot in her speeches... Nobody in this century says that anymore...
Jouni Matero
Jouni Matero Jun 23, 2021 9:03AM ET
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Carlos GV Ronald just said
Rob Fordham
Rob Fordham Jun 23, 2021 9:03AM ET
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Ronald Warren it is how economies work it is not madness what u suggest is madness
 
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