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Dow, S&P 500 close at records as U.S. infrastructure bill clears Senate

Published 08/10/2021, 07:07 AM
Updated 08/10/2021, 09:25 PM
© Reuters. FILE PHOTO: A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 9, 2021. REUTERS/Andrew Kelly

© Reuters. FILE PHOTO: A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 9, 2021. REUTERS/Andrew Kelly

By Chuck Mikolajczak

NEW YORK (Reuters) - Wall Street rose on Tuesday, with both the blue-chip Dow and benchmark S&P 500 closing at record highs, as economically sensitive value stocks gained with the U.S. Senate's passage of a $1 trillion bipartisan infrastructure package.

The bill, which now heads to the House of Representatives, could provide the nation's biggest investment in decades in roads, bridges, airports and waterways. Senators also began voting on a follow-up $3.5 trillion spending package that Democrats plan to pass without Republican votes.

"The market is looking at it as part one is a done deal, the market is OK with that," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.

"I do not believe the market is going to be OK with $3.5 trillion but there is still the possibility they are able to block it, or slow it, and have more conversation so the market isn’t focusing on that one yet."

Energy, industrials and materials, which stand to benefit from an economic recovery, were among the top performing S&P sectors, while names such as Caterpillar (NYSE:CAT), Deere (NYSE:DE) and Vulcan Materials (NYSE:VMC) each rose about 2% as they are poised to reap the gains of infrastructure projects.

The iShares US Infrastructure ETF rose 1.45% and the Global X US Infrastructure Development ETF advanced 2.19%.

Energy shares were buoyed as recently beaten down crude prices jumped nearly 3%.

The Dow Jones Industrial Average rose 162.82 points, or 0.46%, to 35,264.67, the S&P 500 gained 4.4 points, or 0.10%, to 4,436.75 and the Nasdaq Composite dropped 72.09 points, or 0.49%, to 14,788.09.

With new coronavirus cases rising in the United States, progress on the infrastructure package should support the recovery in the world's largest economy.

The rapid spread of the Delta variant has pushed COVID-19 cases and hospitalizations to a six-month high, with cases averaging 100,000 for three days in a row - up 35% over the past week.

Investor will also watch inflation numbers this week for more insight into the Federal Reserve's monetary policy plans, in the wake of comments from two Fed officials on Monday that inflation was already at a level that could satisfy one portion of the requirement for the beginning of rate hikes.

AMC Entertainment (NYSE:AMC) gave up early gains and ended the session 6.07% lower even after beating second-quarter revenue estimates as moviegoers returned to its theaters after a year of closures and restrictions.

Kansas City Southern (NYSE:KSU) gained 7.47% after Canadian Pacific (NYSE:CP) Railway Ltd raised its offer for the U.S. railroad operator by about $2 billion to $27.29 billion.

Advancing issues outnumbered declining ones on the NYSE by a 1.19-to-1 ratio; on Nasdaq, a 1.16-to-1 ratio favored decliners.

© Reuters. FILE PHOTO: A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 9, 2021. REUTERS/Andrew Kelly

The S&P 500 posted 50 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 82 new highs and 95 new lows.

Volume on U.S. exchanges was 8.99 billion shares, compared with the 9.61 billion average for the full session over the last 20 trading days.

Latest comments

Be prepared for Nancy to throw the bomb on this. She and her friends are probably loaded up on shorts.
Good luck Chuck, you are trying to push market up. Its hyper debt. Market is not happy.
Free money everyone... US have free money for all...
So then how to recover these monies? Taxes increase maybe
Nice
Another magic show by the US Ponzi Scheme, greatest financial fraud in history, and biggest investment joke in the world.
This headline didn’t age well…S&P is well off of the day’s highs. Furthermore, the highs happened BEFORE the Infrastructure Bill vote. Classic buy the rumor, sell the news…the bill passage was already baked in. It’s looking like a correction ahead…likely why gold is rising.
Then why gold is going up?anybody knows?
Correction ahead…Infrastructure Bill was already baked in. Just look at the SEC filings for your representitives prior to the vote…follow the smart money.
Thanks
every infrastructure bill ever passed has been resisted by shortsited conservatives, and they have always been proven wrong about the economic outcomes. there is always massive paybacks to the economy over the long term. Productivity and economic activity have always accelerated with the adaption of massive infrastructure programs.
Except only 25% of it actually goes to infrastructure the rest of it goes to boondoggle stuff like a 125 million to study the feasibility of raising a mileage tax on vehicles it's a ghost sham.
for various reasons, it looks to me that a short term correction is coming in the s&p, starting in the middle of this month.
the long term bonds are signaling another rally which means continuation of low % rates.. the markets tend to be predicters of future economic activity. we have some inflation but the markets are saying it will be contained. this money is being spent over an 8 to 10 year period not in a single year.
.,.as the dollar gets stronger.....US default ???
A whole lot of debt and a whole lot of inflation about to roll in. Enjoy!
What a boondoggle............
DELTA and inflation doesnt matter now, and S&P upside to higher and the government is going to default
$1 trillion over 10 years.. ~ $100 bn pr. year  ... most of it down the drain (projects which doesn't pay back the investment) FED QE > $100bn pr. month... why is this big news?
every infrastructure bill ever passed has been resisted by shortsited conservatives. and they have always been proven wrong about the economic outcomes. there is always massive paybacks to the economy over the long term. Productivity and economic activity have always accelerated with the adaption of massive infrastructure programs.
big sell coming
Big sell what?
The fraud turns its attention to the DOW and S&P, as the legalized financial defiling of America continues.  Criminally manipulated joke.
if these markets are so based on fraud why are you on this site??
Pay attention to the infrastructure bill. A big piece of it is for broadband service. The government can't institute digital currency and the "Fed-Coin" without internet service covering almost every square inch of the U.S.
- takes of his tin foil hat -
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