Wall Street ends slightly higher in shortened session, Tesla jumps
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While nine of the 11 S&P 500 sectors rose, healthcare fell the most, dropping 0.8 per cent.
PHOTO: REUTERS
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NEW YORK – Wall Street’s main indexes ended with slim gains in a holiday-shortened session on Monday, helped by a surge in Tesla and strength in bank shares as the second half of the year kicked off on a subdued note.
Tesla shares jumped 6.9 per cent as the electric vehicle maker said it delivered a record number of vehicles in the second quarter.
Shares of major banks gained after the companies raised dividends as they sailed through the Federal Reserve’s annual health check.
Wells Fargo shares rose 1.7 per cent, Citigroup shares climbed 1.5 per cent, while the S&P 500 banks index ended up 1.5 per cent.
Trading volumes were lighter than average as the stock market closed at 1 pm Eastern Time ahead of the July 4 Independence Day holiday on Tuesday.
“You have got a lot of people that are just not in the market today,” said Mr Chuck Carlson, chief executive at Horizon Investment Services in Hammond, Indiana. “Nobody is really placing any big bets on either side of the market right now.”
The Dow Jones Industrial Average rose 10.87 points, or 0.03 per cent, to 34,418.47; the S&P 500 gained 5.21 points, or 0.12 per cent, at 4,455.59; and the Nasdaq Composite added 28.85 points, or 0.21 per cent, at 13,816.77.
While nine of the 11 S&P 500 sectors rose, healthcare fell the most, dropping 0.8 per cent, while the heavyweight technology sector fell 0.3 per cent.
Stocks ended higher last Friday, closing out a strong first-half of the year for major equity indexes. The Nasdaq Composite posted its biggest first-half gain in 40 years, rising 31.7 per cent.
Outsized gains for megacap stocks have led indexes in 2023, but recent signs have shown a broadening rally.
“You have a stronger market and the likelihood of a more sustained upside move when you have broader strength,” said Mr Carlson.
A widely watched section of the United States Treasury yield curve hit its deepest inversion on Monday since 1981, reflecting financial markets’ concerns about the economy.
US manufacturing slumped further in June, a survey showed, reaching levels last seen when the economy was reeling from the initial wave of the Covid-19 pandemic.
Advancing issues outnumbered decliners on the NYSE by a 2.27-to-1 ratio; on the Nasdaq, a 1.51-to-1 ratio favoured advancers.
The S&P 500 posted 20 new 52-week highs and no new lows; the Nasdaq Composite recorded 59 new highs and 47 new lows.
About six billion shares changed hands in US exchanges, compared with the 11 billion daily average over the last 20 sessions. REUTERS
