Wall Street set to rise on tech strength; Tesla extends losses

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(Businesshala) – US stock indexes were set to rise on Monday as economically resilient sectors benefited from inflation, while investors awaited retail earnings and economic data this week to gauge the health of consumer spending.

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

The three major Wall Street indexes fell between 0.3% and 0.7% last week on concerns of high inflation and weak consumer sentiment. At the end of the week, investors started investing in growth sectors, primarily technology.

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Market-heavy FAANG stocks rose between 0.2% and 0.8% in premarket trade, with Meta Platforms Inc.

“(What) you see with price-growth trading is a term you use in football – happy feet. Investors are ready to give up on one and switch to the other when they get some sort of news on inflation, said Robert Pavlik, senior portfolio manager for Dakota Wealth in Fairfield, Connecticut.

Electric car maker Tesla Inc. outperformed its tech peers, falling 2.2% after chief Elon Musk’s feud with Bernie Sanders as the US senator demanded the rich pay a “fair share” of taxes.

Tesla’s decline comes after a 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.

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 degree because some of these big box companies have been able to raise prices and keep them pretty close to margin levels,” said Pavlik of Dakota Wealth.

At 8:29 am, the Dow E-minis were up 147 points, or 0.41%. The S&P 500 e-minis were up 18 points, or 0.38%, and the Nasdaq 100 e-minis were up 77.75 points, or 0.48%.

Oil stocks tumbled in the crude oil market, as rising COVID-19 cases in Europe cast doubt on strong demand. [O/R]

US-listed Chinese stocks, and other China-exposed sectors were muted on mixed data from the mainland, reflecting strong industrial production and retail sales, but weakness in the asset sector.

Boeing was among the best-performing Dow members before the bell, rising 3.3% after Emirates announced an order for two 777 freighters and Saudi Arabian Airlines in talks with planners for a wide-body jet order Was getting it done.

Dollar Tree Inc added 6.1% when active investor Mental Ridge LP disclosed a 5.7% stake in the discount retailer.

Reporting by Amber Warik and Devik Jain in Bengaluru; Editing by Maju Samuel

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