S&P 500 ends the day unchanged because the benchmark continues to hover close to its file
The S&P 500 ended the trading session near the flatline on Tuesday, as the benchmark failed to refresh its all-time high from May.
The broad stock index rose less than 1 point to 4,227.26, 0.3% below its record high of 4,238.04 on May 7. The Dow Jones Industrial Average fell 30.42 points, or 0.1%, to 34,599.82, while the tech-heavy Nasdaq Composite rose 0.3% to 13,924.91.
Tesla wiped out previous profits and fell nearly 0.3% even after deliveries spiked. The electric automaker shipped 33,463 Chinese-made vehicles in this market in May, up 29% from April.
Airlines’ stocks rose after the Centers for Disease Control and Prevention eased travel recommendations for 61 countries, including Japan, France, South Africa, Canada, Spain and Italy. United Airlines was up nearly 0.8% while Delta was up about 2.1%. An upgrade from Jefferies’ optimism about international and business travel also increased Delta’s stake.
Boeing shares rose slightly after Southwest Airlines announced it would add nearly three dozen aircraft to its order for the smallest 737 Max model amid improved travel demand.
The trading mania fueled by Reddit appeared to have spread to other stocks on Tuesday, notably Clover Health and Wendy’s. The healthcare start-up gained up to 100% to finish the day up 86%, while the fast food chain’s shares rose 25.8%.
The US Securities and Exchange Commission said Monday it is monitoring the continued volatility in the market and pledging to protect retail investors.
On the data front, job vacancies rose to a new record high in April with 9.3 million vacancies amid the economic recovery. The standard set in April was well above the 8.3 million in March, which dates back to 2000 for the Department of Labor’s vacancy and labor turnover survey.
“This recent surge in job vacancies suggests that companies are struggling to fill positions, and the number of layoffs reported in the JOLTS data has also risen sharply, suggesting that workers are able to fill new positions find – or trust in their abilities. “JPMorgan strategist Daniel Silver said in a note. “Both of these factors signal the need for companies to raise wages, and we’ve seen a variety of related moves recently.”
Elsewhere, several global websites were down early Tuesday, but the extent of the problem and how it was spread were unclear. Futures, especially those for tech-heavy Nasdaq, had apparently waned as the news of the default spread, but quickly made up for most of those losses. It was unclear at the time whether the move was related to this.
The consumer price index for May is due to be published on Thursday. According to the Dow Jones, economists expect the consumer price index to increase by 4.7% year-on-year. In April the CPI rose 4.2% on an annual basis, the fastest increase since 2008.
All eyes are on the next meeting of the Federal Reserve Open Market Committee, slated for June 15-16, as investors watch what central bank officials will say about inflation and monetary policy. Recent comments from officials suggest the Fed is beginning to prepare markets to slow down its asset purchases.