😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

S&P 500 in Rally Mode as Energy, Tech Shine

Published 2022/06/21, 20:42
© Reuters.

By Yasin Ebrahim

Investing.com -- The S&P 500 rallied Tuesday, powered by an ExxonMobil-led climb in energy and jump in growth stocks despite a fresh climb in Treasury yields on expectations for aggressive Federal Reserve tightening ahead.

The S&P 500 rose 0.6%, the Dow Jones Industrial Average gained 0.2%, or 67 points, the Nasdaq was up 1.9%.

Energy climbed more than 4%, supported by a 6% spike in Exxon Mobil (NYSE:XOM) after Credit Suisse upgraded its rating to stock outperform from buy amid expectations the oil major’s differentiated growth strategy will drive “excellent” returns.

Tesla (NASDAQ:TSLA), meanwhile, drove the gains for consumer stocks, rising more than 12% after chief executive Elon Musk detailed to lay off about 10% of the electric vehicle maker’s salaried staff

Tech found its footing following a selloff last week as investors snapped up beaten down big tech names including Apple (NASDAQ:AAPL) and Alphabet.

Alphabet Inc Class A (NASDAQ:GOOGL) jumped more than 4% as the search-engine is reportedly in talks with Netflix (NASDAQ:NFLX) about a potential advertising agreement. Netflix was down nearly 3%.

Twitter (NYSE:TWTR) was up about 2% after the social media giant sent a letter to shareholders urging them to back Musk’s $44 billion take-private deal. Musk reportedly highlighted three factors that needed to be addressed to proceed with the deal including Twitter shareholder approval, information on fake accounts on the platform and securing financing for the deal.

Kellogg Company (NYSE:K) climbed more than 2% after the cereal maker detailed plans to split into three separate public entities focussed on cereal, snacks, and plant-based businesses. The spin offs are expected to be completed in the third quarter.

On the economic data front, the housing market continues to show signs of cooling, though prices remain firm amid a lack of supply.

“The sharp decline in resale activity will thus weigh considerably on the housing competent of GDP which is on track to contract by roughly 20% in the second quarter,” Jefferies said in note.

Housing stocks remained firm, with KB Home (NYSE:KBH), PulteGroup (NYSE:PHM) and Lennar in the green.

Lennar (NYSE:LEN) rose more than 2% after reporting second-quarter results that topped Wall Street forecasts on both the top and bottom lines.

In other news, Spirit Airlines (NYSE:SAVE) climbed less than 1% after JetBlue Airways (NASDAQ:JBLU) sweetened its offer to buy the low-cost airline for $33.50 a share.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.