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

Stock Markets Aug 10, 2021 09:25PM ET
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© 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.

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.

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

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Comments (20)
Options Trader
Options Trader Aug 11, 2021 12:10AM ET
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Be prepared for Nancy to throw the bomb on this. She and her friends are probably loaded up on shorts.
KAMAL AHMED
KAMAL AHMED Aug 10, 2021 11:05PM ET
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Good luck Chuck, you are trying to push market up. Its hyper debt. Market is not happy.
Mark Jannetty
Mark Jannetty Aug 10, 2021 2:59PM ET
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house said they wont pass, unless Pelosi gets to destroy what's left of America at the same time. one dollar in brass fixes it
David David
David9 Aug 10, 2021 2:15PM ET
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Free money everyone... US have free money for all...
Cal Lowe
Cal Lowe Aug 10, 2021 2:00PM ET
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So then how to recover these monies? Taxes increase maybe
Owel Lumanlan
Owel Lumanlan Aug 10, 2021 1:59PM ET
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Nice
Mitchel Pioneer
Mitchel Pioneer Aug 10, 2021 1:46PM ET
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Another magic show by the US Ponzi Scheme, greatest financial fraud in history, and biggest investment joke in the world.
Jason Chadwick
TrendFinder Aug 10, 2021 1:42PM ET
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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.
Rff Fff
Rff Fff Aug 10, 2021 1:27PM ET
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Then why gold is going up?anybody knows?
Jason Chadwick
TrendFinder Aug 10, 2021 1:27PM ET
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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.
Rff Fff
Rff Fff Aug 10, 2021 1:27PM ET
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Thanks
Ac Tektrader
Ac Tektrader Aug 10, 2021 1:24PM ET
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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.
Bill Varner
Bill Varner Aug 10, 2021 1:24PM ET
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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.
 
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