Wall Street backed by technology; Tesla extends its losses

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, United States, October 27, 2021. REUTERS / Brendan McDermid

  • Tesla falls after losing more than 15% last week
  • Boeing on freight demand hopes
  • China worries about tooth mining stocks
  • Rising indices: Dow 0.26%, S&P 0.27%, Nasdaq 0.30%

Nov. 15 (Reuters) – U.S. stock indices were supported by tech stocks on Monday as concerns about rising inflation prompted investors to look to economically resilient sectors ahead of major earnings and retail data this week.

S&P technology (.SPLRCT) and communications services (.SPLRCL) were the top performers at the start of trading, adding 0.4% and 0.6% respectively, while Meta Platforms Inc (FB.O ) led the gains among FAANG stocks with 3.2%. to augment.

The three main Wall Street indices had fallen between 0.3% and 0.7% last week on concerns over high inflation and weakening consumer confidence. Investors had started turning to growth sectors, primarily tech, towards the end of the week.

“(What) you see with value-growth trading is a term you use in football – happy feet. Investors are willing to give up on one and switch to the other when they hear news. on inflation, ”said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.

Electric car maker Tesla Inc (TSLA.O) has lagged behind its tech peers, falling 2.9% after Chief Elon Musk argued with Bernie Sanders as the US Senator demanded that the rich pay their “fair share” of taxes. Read more

Tesla’s declines follow a sharp 15.4% drop last week after Musk shed a combined $ 6.9 billion worth of shares in the electric car maker. Read more

This week the focus will be on earnings reports from several major retailers including Walmart Inc (WMT.N), Target Corp (TGT.N), Home Depot Inc (HD.N) and Macy’s Inc (MN) . Their results will end a season of optimistic third-quarter earnings, which has pushed Wall Street to new highs.

Retail sales data for October is also due on Tuesday and should show the impact of inflation on consumer spending.

“Inflation will probably end up helping (retailers) somewhat because some of these big box companies are able (…) to raise prices and roughly maintain their margin levels,” Pavlik added. by Dakota Wealth.

Rising inflation expectations pushed up Treasury yields, which benefited major bank stocks. Financial sector S&P (.SPSY) added 0.2%.

As of 9:56 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 94.58 points, or 0.26%, to 36,194.89 and the S&P 500 (.SPX) was up 12.80 points, or 0.27%, to 4,695.65. The Nasdaq Composite (.IXIC) was up 47.24 points, or 0.30%, to 15,908.20.

Boeing (BA.N) was the main driver of the Dow Jones, up 4.0% after Emirates announced an order for two 777 Freighters and Saudi Arabian Airlines was in talks with the aircraft manufacturer for an order for wide-body carriers. Read more

The S&P materials sector (.SPLRCM) lagged its peers with a decline of 0.7% as signs of weakness in the Chinese real estate sector weighed on major metal miners. The sector is a key driver of global demand for metals. Read more

Dollar Tree Inc (DLTR.O) added 11.7% after activist investor Mantle Ridge LP revealed a 5.7% stake in the discount retailer.

Rising issues outnumbered declines by a 1.31-to-1 ratio on the NYSE and a 1.21-to-1 ratio on the Nasdaq.

The S&P Index recorded 26 new 52-week highs and two new lows, while the Nasdaq recorded 90 new highs and 35 new lows.

Reporting by Ambar Warrick and Devik Jain in Bengaluru; Editing by Maju Samuel

Our Standards: The Thomson Reuters Trust Principles.

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