Wall Street closes up on infrastructure gains but Tesla weighs

3 minute read

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 27, 2021. REUTERS/Brendan McDermid

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NEW YORK, Nov 8 (Reuters) - Wall Street stocks ended slightly higher on Monday, gaining early in the day as investors cheered passage of a U.S. infrastructure spending bill, but paring gains late as sliding Tesla shares weighed the indexes down.

All three major U.S. stock indexes pared early gains but closed higher. Still, the S&P 500 (.SPX) and the Nasdaq (.IXIC) extending their run of all-time closing highs to eight straight sessions.

"It has become a self-fulfilling prophesy," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

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"Why are the indexes going up? Because people are buying," Nolte added. "Why are they buying? Because the indexes going up."

Tesla Inc (TSLA.O) was the heaviest weight on the S&P 500. Its shares fell following CEO Elon Musk's Twitter poll on whether he should sell about 10% of his holdings of stock in the electric automaker company he founded. The poll garnered more than 3.5 million votes, with 57.9% voting "Yes". read more

Economically sensitive cyclicals, smallcaps (.RUT) and chips (.SOX)led the charge higher, with the Philadelphia SE Semiconductor index hitting a record high.

Industrials and materials got a boost after the U.S. Congress passed President Joe Biden's $1 trillion infrastructure spending bill on Saturday. read more

"Over the weekend we got another trillion dollars thrown at the economy which is already running hot," Nolte said. "So investors are looking at that as a very good thing for equity markets."

Caterpillar Inc (CAT.N), Cleveland-Cliffs Inc (CLF.N), Freeport McMoRan (FCX.N) and U.S. Steel Corp (X.N) were among companies riding the wave to solid gains.

Lawmakers now turn to Biden's social spending bill, with the House of Representatives expected to vote on the measure next week, according to White House economic adviser Brian Deese. read more

According to preliminary data, the S&P 500(.SPX) gained 4.09 points, or 0.09%, to end at 4,701.53 points, while the Nasdaq Composite (.IXIC) gained 9.73 points, or 0.06%, to 15,981.31. The Dow Jones Industrial Average (.DJI) rose 108.45 points, or 0.30%, to 36,436.40.

The third-quarter reporting season has reached the final stretch, with 445 of the companies in the S&P 500 having reported as of Friday. Of those, 81% have come in above analyst expectations, according to Refinitiv.

Cryptocurrency and blockchain-related stocks, including those of Coinbase Global (COIN.O), Riot Blockchain (RIOT.O), Marathon Digital Holdings (MARA.O) and MicroStrategy Inc (MSTR.O) rose sharply, as ether scaled new peaks and bitcoin neared a record high. read more

Shares of cosmetics maker Coty Inc jumped after the company hiked annual organic sales forecast. read more

Nextdoor Holdings Inc surged in its volatile debut after the neighborhood network platform was brought public in a deal with Khosla Ventures Acquisition Co II, a special purpose acquisition company (SPAC).

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Reporting by Stephen Culp; additional reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by David Gregorio

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