Wall Street climbs in upbeat start to 2022

The Wall St. sign is seen outside the New York Stock Exchange (NYSE) in New York, U.S., December 17, 2019. REUTERS/Brendan McDermid
  • Tesla charges ahead on better-than-expected deliveries
  • Banks gain as Treasury yields rally on rate hike hopes
  • Indexes: Dow flat, S&P up 0.1%, Nasdaq rises 0.6%

Jan 3 (Reuters) - U.S. stock indexes on Monday looked to extend a market recovery from the pandemic shock into the new year, led by a surge in heavyweight Tesla after the electric carmaker posted bumper delivery numbers.

Tesla (TSLA.O)rose 10.4% after the company's quarterly deliveries exceeded Wall Street estimates, riding out global chip shortages as it ramped up production in China. read more

The stock gave the biggest boost to the S&P 500 and the Nasdaq, followed by Apple (AAPL.O) and Nvidia (NVDA.O). Apple's shares, last up $181.61, closed in on the $182.86 mark needed to become the first company to post a market capitalization of $3 trillion.

The banking index (.SPXBK) added 3.1%, as bank stocks tracked a jump in U.S. Treasury yields on expectations of a series of U.S. interest rate hikes this year.

Wells Fargo's shares were further boosted by a report of its upgrade to "overweight" by Barclays.

Another economically sensitive sector, energy (.SPNY) firmed 2.5%, the most among major S&P sector indexes as crude prices rose on tight supply and hopes of a further demand recovery in 2022.

"Looks like the reopening trade is in full force this morning and it basically says the market is looking through Omicron... it's something we can live with, like the seasonal flu," said Thomas Hayes, managing member at Great Hill Capital Llc in New York.

The U.S. Food and Drug Administration authorized a third dose of Pfizer (PFE.N) and BioNTech's COVID-19 vaccine for children aged between 12 and 15 years. Pfizer's shares, however, fell 3%, pulling the healthcare index (.SPXHC) down 1.7%. BioNTech slumped 7%. read more

At 11:45 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 13.38 points, or 0.04%, at 36,351.68, the S&P 500 (.SPX) was up 5.01 points, or 0.11%, at 4,771.19, and the Nasdaq Composite (.IXIC) was up 95.75 points, or 0.61%, at 15,740.72.

All of Wall Street's main indexes ended 2021 with monthly, quarterly and annual gains, recording their biggest three-year advance since 1999.

The benchmark S&P 500 added 27% in 2021 and reported 70 record-high closes, its the second-most ever, in a tumultuous year hit by new COVID-19 variants and supply chain shortages.

The Dow added 18.7% for the year and the tech-heavy Nasdaq gained 21.4%.

"Lots of liquidity and low-interest rates are the supporting factors which will change in couple of months when the Fed hikes rates somewhere in June," said Randy Frederick, vice president of trading and derivatives for Charles Schwab.

"But there remains huge capital on the sidelines which needs placement and as long as that is true markets will remain higher."

Shares of AT&T (T.N) and Verizon Communications (VZ.N) gained 3% and 0.7% respectively after their chief executives rejected a request to delay the planned Jan. 5 introduction of new 5G wireless service over aviation safety concerns. read more

Advancing issues outnumbered decliners by a 1.14-to-1 ratio on the NYSE and by a 1.85-to-1 ratio on the Nasdaq.

The S&P index recorded 17 new 52-week highs and no new lows, while the Nasdaq recorded 74 new highs and 50 new lows.

Reporting by Bansari Mayur Kamdar, Shashank Nayar and Medha Singh in Bengaluru; Editing by Maju Samuel

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