By Yasin Ebrahim
Investing.com – The S&P 500 climbed Wednesday, continuing its rebound from the recent omicron led selloff as a Tesla-infused rally in consumer discretionary and further strength in big tech push stocks higher.
Tesla (NASDAQ: TSLA ) rose more than 6% after chief executive Elon Musk said he has sold “enough stock” to achieve his goal of selling 10% of his stake in the electric car company.
The move higher in Tesla comes just weeks ahead of the EV maker’s fourth quarter update on deliveries.
“Tesla typically reports within 2-3 days of quarter-end so expect the results early in the new year,” RBC Capital Markets said in a note, forecasting total 4Q21 deliveries of 285,000 units.
Consumer discretionary was also boosted by a surge in reopening stocks as travel and hospitality corners of the market racked up gains.
Sentiment on reopening stocks was also strengthened by news that Pfizer’s Covid-19 pill has received emergency use authorization. Pfizer’s Paxlovid is the first at-home medication authorized for Covid-19.
“Pfizer stands ready to begin delivery in the U.S. immediately to help get PAXLOVID into the hands of appropriate patients as quickly as possible,” said Albert Bourla, chairman and chief executive officer of Pfizer (NYSE: PFE ).
Big tech, with exception of Meta, formerly known as Facebook (NASDAQ: FB ), also pushed the broader market higher.
Energy added to gains from a day earlier rising more than 1% as oil prices were boosted by a larger-than-expected decrease in weekly U.S. crude inventories.
U.S. inventories fell by 4.7 million barrels, above expectations for a 2.8 million barrel decline.
In industrials, meanwhile, Caterpillar Inc (NYSE: CAT ) rose more than 1% after Bernstein upgraded the company to outperform from perform, citing upside into 2022.
Coinbase (NASDAQ: COIN ) climbed 2% after Oppenheimer named the company a top pick for 2022 as the acceleration of digital assets adoption will continue to bolster the crypto exchange’s growth prospects.
“For institutional investors who are interested in getting exposure to digital assets, we believe COIN [Coinbase] is well positioned to benefit from it,” Oppenheimer said.
On the economic front, the U.S. consumer continued to remain resilient shrugging off concerns about inflation amid “strong income expectations,” Jefferies said.
The consumer confidence index rose to 115.8 in December, well above consensus for a reading of 111.0.
Developments in Washington also supported the market melt up after President Joe Biden said he would extend the pause on student-loan repayments through May 1.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.