The market kicked off the new month by rocketing higher as investors remained laser-focused on the good and shut out other discouraging developments.
For instance, Republicans and Democrats appear to be far apart on another round of urgently needed stimulus, but investors favored instead an Institute of Supply Management report showing that manufacturing improved more than expected in July, at a reading of 54.2 that was up from June's 52.6. Still, overall activity remains heavily depressed from pre-pandemic levels.
"Comments from respondents were surprisingly downbeat given the improvement in the composite," write Barclays researchers. "Only two respondents (from the 'computers and electronics'. industry and 'chemicals') seemed genuinely upbeat about demand conditions, with most others flagging a slowing pattern of new orders.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Uncertainty and consolidation also seem to be the order of the day, with at least one respondent (transportation equipment) pointing to substantial layoffs in the coming months and another (nonmetallic metal products) stating that plans are afoot to consolidate production.
The Dow Jones Industrial Average finished up 0.9% to 26,664, the S&P 500 gained 0.7% to 3,294, and the Nasdaq Composite improved 1.5% to a record-high 10,902%. All three indices were helped by Microsoft (MSFT, +5.6%), which surged on reports that it is trying to buy the U.S. business of popular Chinese-owned social app TikTok. The app is set to be banned in the U.S. Sept. 15 as a potential national security threat over its data collection abilities.
The small-cap Russell 2000 continued its boom-or-bust ways of late, jumping 1.8% to 1,506. Meanwhile, gold finished 0.1% higher to $1,986.30 per ounce after crossing the $2,000 mark earlier in the day.
A Big Day for EVs and SPACs
One of the biggest industry winners Monday: electric vehicle (EV) stocks.
China's Nio (NIO, +13.8%) announced it delivered 3,533 vehicles in July, a whopping 322% year-over-year improvement. Meanwhile, electric-van maker Workhorse Group (WKHS, +23.6%) jumped on news that Lordstown Motors, which it owns a 10% stake in, will be acquired by DiamondPeak (DPHC) -- one of several special purpose acquisition companies, or SPACs, that are the latest rage on Wall Street. If you like to follow the "smart money,"
SPACs, which have been around since 1980, are a more direct way of doing it. You effectively invest your money into a company -- sponsored by private equity, hedge funds and other billionaire types -- that will then use that money to purchase another company, which is why they're sometimes also called "blank check" companies.
Read on as we explain how SPACs work and highlight several companies -- some already public, some that have filed for IPOs -- that should be on your radar.
Kyle was long MSFT and WKHS as of this writing.
-
Stocks Edge Higher With Nvidia, Fed in Focus: Stock Market TodayThe AI bellwether reports earnings after today's close, while Wall Street is keeping a cautious eye on President Trump's attacks against the Fed.
-
New Trump Tax Bill: Five Changes Homeowners Need to Know NowTax Changes Trump’s new tax legislation is reshaping how tax breaks for homeowners work.
-
Dow Rips 846 Points to New All-Time High: Stock Market TodayFed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
-
Tech Sells Off While Trump Stirs the Fed: Stock Market TodayWe've reached another important part of earnings season, though markets remain captivated by the president, the Fed, and interest rate policy.
-
Dow Retreats From a Record High: Stock Market TodayQuietly rising since April, Home Depot stock was conspicuously constructive Tuesday as high-profile tech names dragged equity indexes down.
-
What Tariffs Mean for Your Sector ExposureNew, higher and changing tariffs will ripple through the economy and into share prices for many quarters to come.
-
Dow Dives 542 Points on Soft Jobs Data: Stock Market TodayThe last day of a busy week ends with the first greater-than-1% move in either direction in more than a month.
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market TodayThe main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
How to Invest for a Fall Interest Rate Cut by the FedA lot can happen between now and then, but the probability the Fed cuts interest rates in September is back above 80%.
-
Stocks Are Up and Down on Fed Day: Stock Market TodayIn another sign of changing times, JPMorgan has partnered with Coinbase to enable cryptocurrency purchases with credit cards.
