Investors are waiting for inflation data and the start of the fourth-quarter earnings season to come out later this week. On Monday, U.S. stocks (e.g. Tesla stock) went up, helped by broad gains in mega-cap technology stocks.
Tesla Stock and Other Movers
Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Amazon all saw gains of around 3% in morning trading, helping the tech-heavy Nasdaq Composite (COMP.IND) rise 2.12% to 10,793.48 points (NASDAQ:AMZN). Additionally beneficial was Tesla’s (NASDAQ:TSLA) stock’s 8% increase.
Market Stock Outlook
The blue-chip Dow (DJI) rose 0.89% to 33,930.82 points, while the benchmark S&P 500 (SP500) gained 1.41% to 3,950.12 points. Ten of the 11 S&P sectors, led by technology and consumer discretionary, were trading in the green. The lone loser was health care.
All three major indices kept their big gains from the previous session. These gains were sparked by the government’s monthly jobs report, which showed possible signs of a weakening labor market.
According to Paul Donovan of UBS, “Friday’s US jobs report will be revised, but the evidence could be a hint of some economic slowdown ahead.” “Even when fake costs like owners’ equivalent rent are disregarded, the US has seen relatively poor real wage growth.” “Credit and savings have been used by consumers to support living standards.”
Donovan went on to say, “If the consumer loses their savings and credit resources, they may have to take on extra work to keep their living standards stable.” “It’s possible that we’ve now reached that breaking point.” Employment increased, particularly in lower-wage sectors (which is one reason average hourly earnings slowed). When compared to the time before the pandemic, the number of people who had more than one job went up by a lot.
Rates were lower in the bond markets. The yield on the 10-year Treasury (US10Y) decreased by 4 basis points to 3.53%. The yield on the 2-year note (US2Y) fell by 5 basis points to 4.21%.
In terms of economic data, the TD Ameritrade Investor Movement Index for December was 4.17, which was the same score as in November. The December CPI report is due on Thursday. It is expected to show that inflation has gone down, which will ease the Federal Reserve’s worries about rising consumer prices. Later this week, the fourth-quarter earnings season will also begin, with three of the top U.S. banks scheduled to release their results.
After Jack Ma gave up ownership of Ant Group, Alibaba (NYSE:BABA), one of the most active stocks on Monday, went up. After data from a mid-stage trial of its liver disease treatment were made public, Arrowhead Pharmaceuticals (NASDAQ:ARWR), one of the top percentage losers on the Nasdaq Composite (COMP.IND), experienced a decline in its stock price.
Why Tesla Stock Dropped Once More Today
Featured Image: Unsplash @ Tesla Fans Schweiz