Dow And S&P Hit New Record Highs As Tesla Adds To Its Massive Rally

Topline

Major stock indexes added to record highs on Tuesday as strong third-quarter earnings continued to buoy investor sentiment, all while electric car-maker Tesla extended a massive rally that’s made it one of the most valuable companies in the world.

Key Facts

The Dow Jones Industrial Average climbed more than 120 points, or 0.3%, to 35,865 on Tuesday morning, adding to a record close from Monday and bringing its gains this year to about 18%. 

The S&P 500, which also closed at a record high Monday, jumped about 0.6% to 4,595 points, led by chipmaker Nvidia, up 8% after an analyst upgrade, and shipping giant United Parcel Service, which jumped 7% after better-than-expected earnings.

Meanwhile, shares of Tesla continued a stunning days-long tear following the company’s record third-quarter earnings last week, climbing nearly 6% after jumping 13% on Monday as investors continued to rally around the electric car-maker’s biggest sale ever: a $4.2 billion deal with car-rental firm Hertz. 

Even the tech-heavy Nasdaq, which has underperformed the S&P this year, jumped past a record closing high from September, climbing 1% Tuesday morning to 15,382 points.

Reflecting the emboldened market sentiment, consumer confidence unexpectedly improved in October after three-straight monthly declines, nonprofit the Conference Board reported Tuesday, with economist Lynn Franco saying rising inflation concerns have finally stopped hurting confidence.

Key Background

Following a weeks-long breather, stocks returned to record highs this month thanks to largely resilient corporate profits despite rising costs, with about 82% of S&P 500 companies that have thus far reported third-quarter earnings beating analyst expectations, according to Refinitiv data. Though inflationary fears have rattled markets this year, Lindsey Bell, chief investment strategist at Ally Invest, says the concerns haven’t been enough to discourage investors, pointing to rallying transportation and consumer discretionary stocks as signs that “worries around supply chain constraints are beginning to fade.”

What To Watch For

A slew of big-tech companies are slated to report earnings this week, with Google-parent Alphabet, Microsoft and Twitter all slotted for Tuesday afternoon, followed by Amazon and Apple on Thursday.

Further Reading

Tesla Eclipses $1 Trillion In Market Value After Hertz Places Biggest Electric Vehicle Order Ever (Forbes)

Stocks Close At Record Highs After Tesla Hits $1 Trillion In Market Value (Forbes)

Dow Posts New Record High Despite Facebook’s $50 Billion Stock Plunge (Forbes)

Comments are closed.