ECONOMIC SILUET: S&P 500, Dow hit records | Senate passes $1 trillion infrastructure bill

Selasa, 10 Agustus 2021

S&P 500, Dow hit records | Senate passes $1 trillion infrastructure bill | Inflation report ahead

TUE, AUG 10, 2021

EVENING BRIEF

AS OF TUE, AUG 10, 2021 • 04:58 ET

DJIA		35264.67
		+0.46%	+162.82

S&P 500		4436.75
		+0.10%	+4.40

NASDAQ		14788.09
		-0.49%	-72.09

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	145.60	-0.49	-0.34%
MSFT	286.44	-1.89	-0.66%
INTC	53.94	-0.11	-0.20%

S&P 500
NAME	LAST	CHG	%CHG
AMD	106.48	-1.10	-1.02%
PFE	48.19	+2.21	+4.81%
AAPL	145.60	-0.49	-0.34%

NASDAQ
NAME	LAST	CHG	%CHG
AMD	106.48	-1.10	-1.02%
AAPL	145.60	-0.49	-0.34%
MU	75.91	-4.30	-5.36%

EDITOR'S NOTE

The Dow Jones Industrial Average and S&P 500 rose to records on Tuesday after the Senate passed a $1 trillion bipartisan infrastructure bill.

The legislation, which includes $550 billion in new funding for transportation, broadband and utilities, got through in a 69-30 vote. The chamber will next move to approve a budget resolution that would allow Democrats to pass their $3.5 trillion spending bill without Republican votes.

The Dow rose 162.82 points to close at a new high of 35,264.67. The 30-stock index was helped by a roughly 2.5% jump in Caterpillar's stock. The S&P 500 climbed 0.1% to end the trading session at a fresh record of 4,436.75. The Nasdaq Composite was the relative underperformer on Tuesday, dipping about 0.5%, as investors dumped technology stocks amid a jump in bond yields. The so-called FAANG names all closed in the red.

"The official passage of a roughly $1 trillion infrastructure bill by the U.S. Senate today is fueling a rally in pro-cyclical stocks, while investors continue to look through the rise in delta-driven cases," said Goldman Sachs' Chris Hussey.

The Global X U.S. Infrastructure Development ETF rose 2.1% on news of the passage. The iShares U.S. Infrastructure ETF also outperformed the broader market.

Investors will be watching for a key inflation gauge on Wednesday. July's consumer price index is scheduled to be released at 8:30 a.m. ET.

Economists expect to see an increase in the CPI of 0.5% for July, or a gain of 5.3% year over year, according to Dow Jones. That compares with a 0.9% jump in June, or 5.4% on a year-over-year basis, the biggest monthly increase since August 2008.

"It will be another very hot number with the fingerprints of the pandemic all over it," said Mark Zandi, chief economist at Moody's Analytics. Price increases are expected to continue — though at a slower pace — in airline tickets and lodging, areas in which there was pent-up demand when the economy reopened.