On Monday, the main indexes of Wall Street at the highest ever level, boosted by the bank and Tesla stocks as most investors looked for the beginning of the earning season of the second quarter and economic data batch.
The 11 S&P 500 sector indexes’ leaders include communication services, real estate, and financials. Tesla revived and became one of the major contributors of the S&P 500 gains and also the Nasdaq gains.
On Monday, in court, CEO Elon Musk held on to the fact that he doesn’t control Tesla. Moreover, he also said that he didn’t enjoy being the chief executive of the renowned electric vehicle company as he defended the SolarCity acquisition made by the company in 2016.
The banks index of the S&P 500 went up ahead of the earnings reports of the quarter this week. It included some of the major banks, such as JPMorgan and Goldman Sachs. The reviving of Goldman Sachs and JPMorgan Chase allowed the Dow to reach records high.
As per Refinitiv’s IBES data, the investors are likely to closely study the quarterly reports to get early clues about the period for which the economic recovery of the U.S will last. The earnings per share of the June quarter for S&P 500 companies are expected to increase by 66%.
Concerns of the Investors
The rally of the S&P 500 is about 17% till now this year. The investors are putting up questions as to how long the rally of Wall Street is likely to last. Moreover, the potential downturn is also a matter of concern for them.
This week, a major focus will be on a number of economic reports, which includes retail sales and U.S inflation data. On Wednesday and Thursday, Jerome Powell, the Chair of Federal Reserve, will be present before the Congress to discuss inflation and give his views.
The higher inflation is a significant matter of concern for the investors. The spreading of the Delta variant of Coronavirus is also a concern for the investors. The traders are now seesawing between the tech-heavy growth names and economy linked-value stocks.
Unofficially, the Dow rose up to 0.37% or 130.23 points, and the S&P 500 increased by 0.35% or 15.2 points. The Nasdaq Composite also increased by 0.21% or 31.32 points.
Walt Disney rose to a two-month high, and the superhero movie of Marvel’s “Black Widow” was able to get 80 million dollars in the very first weekend. Disney plans to increase the price of its streaming service of ESPN Plus.