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* Tesla falls after plunging more than 15% last week
* Boeing hits three-month high
* China’s wealth sector burdens metal miners
* Index: up 0.07%, S&P flat, Nasdaq down 0.2% (updates price, adds market details)
Nov 15 (Businesshala) – Wall Street indexes were showing a mixed performance on Monday as tech stocks reversed concerns over rising Treasury yields, although potential plane orders stemming from the Dubai Airshow outperformed Boeing and Dow Jones benchmarks.
The Nasdaq gave up early gains to trade lower as heavyweight technology stocks retreated. Higher Treasury yields weigh on the technology, as they discount future earnings from the sector.
Bank stocks benefited from rising yields, with the financial sector rising 0.3%. Yields rose as investors positioned for the potential effects of the Federal Reserve’s tapering.
“Focus on interest rates to apply some pressure to tech stocks. So if we get higher rates – the technology will slow down a bit and a rotation in the financials makes sense in that scenario. The higher the rate, the more money banks make,” said Jay Pestricelli, chief executive officer of investment firm ZEGA Financial.
A rise in yields also threatened to ease a seven-day rally in gold prices, before falling spot gold on Monday to its highest level since mid-June.
Boeing Co was the top boost for the Dow Jones, rising 5% to a three-month high after Emirates announced an order for two 777 freighters and as Saudi Arabian Airlines went through a planner for a wide-body jet order. was talking with.
The Dubai event is the first major aerospace conference since the pandemic has put an end to passenger air travel, with investors watching how the industry is coping with the new mobility.
Electric car maker Tesla Inc fell 4.5% after chief Elon Musk engaged in a feud with Bernie Sanders as a US senator demanded the wealthy pay a “fair share” of taxes.
Tesla’s decline comes after a massive 15.4% drop last week after Musk unloaded shares of a combined $6.9 billion in the electric-car maker.
The focus this week will be on earnings reports from several major retailers including Walmart Inc., Target Corp., Home Depot Inc. and Macy’s Inc. Their results would kick off a third-quarter earnings season that pushed Wall Street to new highs.
Walmart, which is set to report earnings on Tuesday, fell 0.8%, while the S&P Retailers Index rose 0.7%.
Retail sales figures for October are also due on Tuesday, and are expected to show the impact of inflation on consumer spending.
“Inflation is probably going to help (retailers) to some extent because some of these big box companies have been able to raise prices and keep them pretty close to their margin levels,” said Robert Pavlik, senior portfolio manager at Dakota Wealth. Fairfield, Connecticut.
As of 1:51 pm, the Dow Jones Industrial Average was up 23.6 points, or 0.07%, at 36,123.91, the S&P 500 was up 0.02 points, or 0.00%, at 4,682.87, and the Nasdaq Composite was down 36.73 points, or 0.23%, at 15,824.23. ,
The S&P materials sector lagged its peers, down 0.5%, as signs of weakness in China’s assets sector weighed on major metal miners. The region is a major driver of global metal demand.
Dollar Tree Inc. jumped 14.3% and was the top gainer on the S&P 500 when active investor Mental Ridge LP disclosed a 5.7% stake in the discount retailer. (Reporting by Amber Warrick and Devik Jain in Bengaluru and David French in New York, Editing by Maju Samuel and Matthew Lewis)