The New York Stock Exchange operates during normal business hours in the Financial District, Wednesday, Oct. 13, 2021, in the Manhattan borough of New York. (AP Photo/John Minchillo, File)
By Damian J. Troise and Alex Veiga
Stocks shook off a downbeat start to close higher Monday, as big gains by technology and communications companies helped offset losses elsewhere on Wall Street.
The S&P 500 rose 0.8% after having been down 0.2% in the early going. The Dow Jones Industrial Average rose 0.3% and the Nasdaq composite added 1.9%.
Twitter surged 27.1% for the biggest gain in the S&P 500 after the company disclosed that Tesla's Elon Musk had taken a 9.2% stake in the social media platform. In recent weeks Musk has publicly questioned the company’s commitment to free speech. The gains were a key factor in lifting the broader communications sector and keeping the S&P 500 in the green even as little less than half the companies in the index fell.
The market's latest moves follow three straight weekly gains by the S&P 500, even as investors grapple with uncertainties stemming from surging inflation, higher interest rates from the Federal Reserve and the economic fallout from the war in Ukraine.
The S&P 500 rose 36.78 points to 4,582.64, the Dow gained 103.61 points to 34,921.88, and the tech-heavy Nasdaq rose 271.05 points to 14,532.55.
Smaller company stocks also gained ground. The Russell 200 index rose 4.33 points, or 0.2%, to 2,095.44.
Apple and other big technology stocks did the heavy lifting Monday, offsetting losses elsewhere. Tech companies, with their pricey stock values, tend to have more weight in pushing the market up or down. Apple rose 2.4% and Microsoft gained 1.8%.
Retailers and other companies that rely on consumer spending also helped lift the market. Tesla rose 5.6%, Amazon added 2.9% and Home Depot closed 1.2% higher.
Investors continue to monitor the conflict in Ukraine, where Russia could face even stricter economic sanctions now that details are emerging of what appear to be deliberate killings of civilians.
The European Union’s foreign policy chief, Josep Borrell, joined a growing chorus of international criticism of the alleged atrocities, saying the 27-country bloc “will advance, as a matter of urgency, work on further sanctions against Russia.”
Russia's invasion of Ukraine has elevated concerns about rising inflation and the impact on global economic growth. Prices for everything from food to clothing had already been rising and the war has made for even more volatile energy prices.
The price of U.S. benchmark crude oil rose 4% and Brent crude, the international standard rose 3%. Prices are up roughly 40% globally, which has put pressure on costs for gasoline and other goods.
Bond yields mostly gained ground. The yield on the 10-year Treasury rose to 2.41% from 2.38% late Friday. The yield on the two-year Treasury dipped to 2.41% after having moved higher most earlier in the day.
The two-year yield has been hovering at times above the 10-year yield, which is a potentially ominous sign. Such a flip of the usual relationship between two- and 10-year yields has preceded many recessions in the past, though it hasn’t been a perfect predictor. Some market watchers caution the signal may be less accurate this time, because of distortions in yields caused by extraordinary measures by the Federal Reserve and other central banks to keep interest rates low.
Bond yields have been climbing all year as Wall Street prepares higher interest rates. The Federal Reserve has already raised its key overnight rate once, the first such increase since 2018. The central bank is expected to continue raising rates throughout 2022 to help counter the impact from rising inflation.
The Fed is due to release minutes from its last meeting on Wednesday.
Markets in Europe closed higher. Asian markets also rose and Hong Kong's Hang Seng jumped 2.1% after regulators in Beijing said they plan to revise rules regarding access of overseas regulators to full audits of companies that have shares listed in overseas markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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