Stocks Hit New High As Yields Fall, TSLA Hits $1 Trillion Market Cap
4:03 pm Monday, October 25th, 2021
The S&P 500 and Dow Jones Industrial Average have set fresh record highs, as the market remains resistant to selling interest in front of a busy earnings week.
Supportive factors today include a pullback in Treasury yields, expectations for an agreement on the reconciliation bill this week (and an eventual vote on the $1 trillion bipartisan infrastructure bill), and Tesla (TSLA) rising 10% to record highs on some bullish news.
After a shaky start, ten of the 11 S&P 500 sectors are now trading higher. The consumer discretionary (+1.5%) and materials (+1.1%) sectors are up more than 1.0%, while the financials sector (-0.1%) is the lone holdout with a small decline.
Regarding Tesla, the company is selling 100,000 cars to Hertz Global (HTZZ) and is reportedly increasing the prices of its Model X and S-Long Range cars by $5,000. Morgan Stanley subsequently raised its price target on the stock to $1200 from $900.
Interestingly, Tesla has eclipsed Facebook (FB) in terms of market capitalization and has just hit the $1 trillion milestone in the process. Facebook will report earnings after the close.
In the Treasury market, the 2-yr yield is down five basis points to 0.42%, and the 10-yr yield is down three basis points to 1.63%. The U.S. Dollar Index is up 0.2% to 93.83. WTI crude futures were trading above $85.00 per barrel earlier today, but they’ve coughed up those gains and now trade flat at $83.77/bbl.
Separately, shares of PayPal (PYPL) are reacting positively to news that it’s not pursuing an acquisition of Pinterest (PINS) right now. PYPL shares are up 4%. PINS shares are down 12%.
