Wall Street Closes Up on Infrastructure Gains but Tesla Weighs

By Reuters
November 9, 2021 Updated: November 9, 2021

NEW YORK—Wall Street stocks ended slightly higher on Monday, rising early after passage of an infrastructure spending bill but paring gains late as sliding Tesla shares weighed the indexes down.

Still, the S&P 500 and the Nasdaq extended their run of all-time closing highs to eight straight sessions. The blue-chip Dow notched its second consecutive record closing high.

“It has become a self-fulfilling prophesy,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

“Why are the indexes going up? Because people are buying,” Nolte added. “Why are they buying? Because the indexes going up.”

Tesla Inc. was the heaviest weight on the S&P 500. Its shares fell 4.9 percent following CEO Elon Musk’s Twitter poll on whether he should sell about 10 percent of his holdings of stock in the electric automaker company he founded. The poll garnered more than 3.5 million votes, with 57.9 percent voting “Yes”.

Economically sensitive cyclicals and chips led the charge higher, with the Philadelphia SE Semiconductor index also hitting a record high close.

Industrials and materials got a boost after the Congress passed President Joe Biden’s $1 trillion infrastructure spending bill on Friday.

“Over the weekend we got another trillion dollars thrown at the economy which is already running hot,” Nolte said. “So investors are looking at that as a very good thing for equity markets.”

New York Stock Exchange
A trader works on the floor of the New York Stock Exchange (NYSE) in New York City on Nov. 2021. (Spencer Platt/Getty Images)

Caterpillar Inc., Cleveland-Cliffs Inc., Freeport McMoRan, and U.S. Steel Corp. were among companies riding the wave to solid gains, between 2.7 percent and 6.5 percent.

Lawmakers now turn to Biden’s social spending bill, with the House of Representatives expected to vote on the measure next week, according to White House economic adviser Brian Deese.

The Dow Jones Industrial Average rose 104.27 points, or 0.29 percent, to 36,432.22, the S&P 500 gained 4.17 points, or 0.09 percent, to 4,701.7 and the Nasdaq Composite added 10.77 points, or 0.07 percent, to 15,982.36.

Among the 11 major sectors in the S&P 500, materials gained the most at 1.2 percent while utilities suffered the session’s largest percentage loss.

The third-quarter reporting season has reached the final stretch, with 445 of the companies in the S&P 500 having reported as of Friday. Of those, 81 percent have come in above analyst expectations, according to Refinitiv.

Cryptocurrency and blockchain-related stocks, including those of Coinbase Global, Riot Blockchain, Marathon Digital Holdings, and MicroStrategy Inc. rose between 5 percent and 18 percent, as ether scaled new peaks and bitcoin neared a record high.

Shares of cosmetics maker Coty Inc. surged 15.1 percent after the company hiked annual organic sales forecast.

Nextdoor Holdings Inc. jumped 17.0 percent in its volatile debut after the neighborhood network platform was brought public in a deal with Khosla Ventures Acquisition Co. II, a special purpose acquisition company (SPAC).

Advancing issues outnumbered declining ones on the NYSE by a 1.37-to-1 ratio; on Nasdaq, a 1.21-to-1 ratio favored advancers.

The S&P 500 posted 50 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 208 new highs and 54 new lows.

Volume on U.S. exchanges was 11.00 billion shares, compared with the 10.66 billion average over the last 20 trading days.

By Stephen Culp