USA Women's Olympic Water Polo Goalkeeper Ashleigh Johnson holds her gold medal as she poses for photos outside the New York Stock Exchange, before ringing the opening bell, Tuesday, Aug. 10, 2021. (AP Photo/Richard Drew)
By Damian J. Troise and Alex Veiga
Stocks capped another wobbly day of trading on Wall Street with modest gains Tuesday, as financial and industrial companies helped lift the market, outweighing a pullback in technology stocks.
The S&P 500 recovered from an early slip and eked out a 0.1% gain, enough to eclipse the record high it set Friday. The majority of companies in the benchmark index made gains, but they were kept in check by technology companies, which have an outsized weight on the S&P 500.
Banks made some of the strongest gains as bond yields edged higher. Banks benefit from higher yields, which allow them to charge higher interest rates on loans. The yield on the 10-year Treasury rose to 1.35% from 1.31% late Monday.
Oil prices pulled up after sliding most of the last week and into Monday. U.S. benchmark crude oil rose 2.7% and helped lift the S&P 500's energy sector to 1.7% gain. Exxon Mobil rose 1.7% and Chevron gained 1.8%.
The broader market remains choppy with investors in the midst of a relatively quiet week. The latest round of corporate earnings is nearly finished and there are only a few pieces of economic data expected.
“We think this is a growing market and a growing economy and there’s room for this market to move,” said Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management. “But that growth story does have some risk to it.”
The S&P 500 gained 4.40 points to 4,436.75. The Dow Jones Industrial Average rose 162.82 points, or 0.5%, to 35,264.67. The blue-chip index also notched an all-time high.
The slide in technology stocks weighed on the tech-heavy Nasdaq, which lost 72.09 points, or 0.5%, to 14,788.09. Small company stocks rose. The Russell 2000 index gained 4.55 points, or 0.2%, to 2,239.36.
Wall Street is still trying to gauge the pace of economic growth amid new worries about the latest wave of COVID-19 from the more contagious delta variant. Parts of Japan, including Tokyo, the capital, remain under a state of emergency as surging numbers of infections put more COVID-19 patients in already overburdened hospitals.
Analysts have said that the pace of growth will likely continue to slow as the year rolls on, but the latest surge with the virus has raised more concerns about just how much. Investors could have a better sense of the virus' impact on the economy in the coming months as schools reopen from summer break and people try to get back to normal activities, Haworth said.
Inflation concerns and the Federal Reserve's future plans to ease up on its support for low interest rates also hangs over the markets.
Earnings season is wrapping up with several big names. Sysco surged 6.5% after the food distributor reported quarterly results that topped Wall Street's estimates.
Ebay will report its results on Wednesday and Walt Disney will report results on Thursday.
Kansas City Southern jumped 7.5% after Canadian Pacific raised its offer for the railroad operator, reigniting a bidding war with Canadian National.
One e-commerce company is putting diverse beauty brands first. 'thirteen lune' was launched last year and carries 100 brands, 90% percent of which are founded by Black, indigenous, people of color (BIPOC). The company has grown tremendously within the past year and just landed a $3 million funding round led by Fearless Fund, a venture capital firm created by women of color, for women of color. Nyakio Grieco, co-founder of thirteen lune joins Cheddar News to talk about the new funding.
Evan Vandenberg, the founder and CEO of Dibbs, a sports card trading platform, joined Cheddar to break down how his company allows sports fans to buy and sell fractions of sports cards. The physical trading cards are typically held in a vault while fans are provided with a digital representation of that card that they can go on to sell or even buy more fractions of the item. Vanderberg also talked about the company's $13 million Series A funding round and investments from major sports figures like the NBA's Chris Paul and NFL's DeAndre Hopkins.
Johan Grahn, Head of ETFs at Allianz Investment Management, joins Cheddar News' Closing Bell to discuss today's market close which saw all major indexes reaching record highs on the back of a strong October jobs report, low-interest rates, and more.
Earlier this week, crypto investors who got in on a 'Squid Game'-inspired coin were shocked when the asset turned out to be part of a scam. The people involved made off with close to $3 million after the Netflix-inspired coin's valuation went from $0.01 to $3,000 and back down to $0 within several days. CoinDesk Anchor Christine Lee joins Cheddar News' Closing Bell to discuss the pump-and-dump scheme, how investors can be on the lookout for similar scams, and what crypto platform Binance is doing to investigate the incident.
Nela Richardson, Chief Economist at ADP, joins Cheddar News' Closing Bell, where he discusses the sector growth in the October Jobs report, and how labor shortages and wage growth will impact the economy going forward.
More American tech companies continue to pull their businesses out of China as the Communist Party cracks down on firms — both foreign and domestic. Yahoo and Fortnite have become the latest companies to withdraw from the country, and the withdrawals come just days after Microsoft announced it would take LinkedIn offline. Shehzad Qazi, managing director at China Beige Book International, joined Cheddar to provide some insight into how the crackdowns in China would also impact the tech companies at home in the United States.
Yelp reported Q3 earnings on Thursday, matching its best quarterly performance in company history, according to CFO David Schwarzbach who joined Cheddar's "Between Bells" to break down the report and business forecast. He also talked about the impact that the pandemic has had on marketing campaigns on the platform and noted that while service pros are doing well, campaigns for restaurants, retail, and other sectors continue to face challenges.
Beatriz Acevedo, CEO of Suma Wealth, discusses the challenges in building financial habits among Hispanic youths and talks about how the company will be prioritizing funds from its recent $2 million raise.
Sian Morson, founder and editor of The Blkchain, talks about the challenges digital artists of color face getting opportunities to advance their careers and ways NFTs are redistributing wealth.
