Stock Market Today

Stock Market Today: Infrastructure Progress Sends Dow, S&P 500 to New Highs

The Senate's passage of a roughly $1 trillion infrastructure bill provided a tailwind to materials, industrials and energy stocks Tuesday.

The Senate on Tuesday green-lit a roughly $1 trillion infrastructure bill that was greeted with cheers by much of the market – though, not all of it.

The Bipartisan Infrastructure Investment and Jobs Act lived up to its name by passing the Senate 69-30. The bill, if passed, would authorize about $550 billion in new federal spending on traditional infrastructure such as roads, tunnels and bridges, as well as on projects such as expanding access to broadband internet and building electric-vehicle charging stations.

The industrial (+1.0%), materials (+1.5%) and energy (+1.8%) sectors led the way, the latter aided by a 2.7% improvement to U.S. crude oil futures, to $68.29 per barrel. Exxon Mobil (XOM, +1.7%), Caterpillar (CAT, +2.5%) and Freeport-McMoRan (FCX, +4.8%) were among some of the day's notable risers.

Not everyone was ready to chalk up all of Tuesday's gains to the Senate's action, however.

"Some of this may be a result of the infrastructure bill but I think it has more to do with a resurrection of the cyclical, value-oriented rally that we saw earlier in the year," says Brian Price, head of investment management for Commonwealth Financial Network a Massachusetts-based registered investment adviser and independent broker/dealer. "We’ve seen this before when interest rates increase, and we’re seeing more of that lately with some hawkish commentary from certain members of the Fed."

The Dow Jones Industrial Average improved by 0.5% to a record close of 35,264. The S&P 500 gained 0.1% to 4,436, surpassing its previous all-time high by a fraction of a point.

Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.

But the Nasdaq Composite (-0.5% to 14,788) struggled thanks to slippage in the tech sector (-0.8%) amid a bump higher in interest rates.

Other news in the stock market today:

  • The small-cap Russell 2000 managed a 0.2% improvement to 2,239.
  • 3D Systems (DDD) enjoyed a massive earnings pop Tuesday. In its second quarter, the 3D printing specialist reported adjusted earnings per share of 12 cents on $162.6 million in revenue. Both figures came in above what analysts were expecting and represented strong growth from the year prior,when 3D Systems reported a quarterly loss of 13 cents per share on $112.8 million in revenue. DDD stock closed up 21.5%.
  • AMC Entertainment (AMC) stepped into the earnings confessional bright and early, reporting a slimmer-than-anticipated net loss of 71 cents per share on higher-than-anticipated revenue of $444.7 million. The company also said it would start accepting Bitcoin at its movie theaters by the end of the year. But while the meme stock was up nearly 10% earlier in the day, it closed with a 6.1% loss.
  • Gold futures gained 0.3% to settle at $1,731.70 an ounce.
  • The CBOE Volatility Index (VIX) edged 0.5% higher to 16.80.
  • Bitcoin prices stalled Tuesday, declining 1.0% to $45,514.86. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.) 
stock chart for 081021

YCharts

Where Infrastructure Progress Could Help the Most

It ain't over 'til it's over, of course.

The House likely won't even take up the infrastructure bill until late September, when it returns from recess, and even if it passes, the spending will be spread out across several years.

But progress is progress.

"While many initiatives in the bill could take a few years to kick in, the boost from this round of stimulus could come just as the recovery wears off," says Lindsey Bell, chief investment strategist at investment platform Ally Invest. "We may start seeing the market price in higher infrastructure spending as investors try to get ahead of the game."

Bell adds that several groups of stocks could get a lift the closer the bill gets to President Joe Biden's desk – the industrial and materials sectors, for instance, as well as more specific industries such as semiconductors and electric vehicles.

If you're looking for a quick list of investment options from a wide variety of specializations, however, consider these 14 infrastructure stocks. These picks range from machinery manufacturers to EV charging station producers to telecom real estate plays – and all could reap rewards if this infrastructure spending plan is passed into law.

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
7 Best Commodity Stocks to Play the Coming Boom
commodities

7 Best Commodity Stocks to Play the Coming Boom

These seven commodity stocks are poised to take advantage of a unique confluence of events. Just mind the volatility.
September 8, 2021
Stock Market Holidays in 2021
Markets

Stock Market Holidays in 2021

Is the stock market open today? Take a look at which days the NYSE, Nasdaq and bond markets take off in 2021.
September 2, 2021

Recommended

Stock Market Today (9/17/21): Stocks End Choppy Week With a Loss
Stock Market Today

Stock Market Today (9/17/21): Stocks End Choppy Week With a Loss

A lower-than-expected reading on consumer sentiment had the major indexes erasing weekly gains.
September 17, 2021
Kiplinger's Weekly Earnings Calendar
stocks

Kiplinger's Weekly Earnings Calendar

Check out our earnings calendar for the upcoming week, as well as our previews of the more noteworthy reports.
September 17, 2021
Stock Market Today (9/16/21): Stocks Weeble, Wobble, But Finish Mostly Flat
Stock Market Today

Stock Market Today (9/16/21): Stocks Weeble, Wobble, But Finish Mostly Flat

An up-and-down session Thursday finished with muted results despite a volley of encouraging economic signals.
September 16, 2021
Stock Market Today (9/15/21): Energy Leads Broad Market Snap-Back
Stock Market Today

Stock Market Today (9/15/21): Energy Leads Broad Market Snap-Back

Upbeat economic data helped provide a tailwind for most stocks, but energy really shone as tight inventories sent oil prices soaring.
September 15, 2021