Stocks struggled to get off the ground Tuesday as volume thinned out ahead of the holiday. As a reminder, the stock and bond markets will close early tomorrow and remain closed Thursday for the Fourth of July.
Despite today's slow start, the main indexes finished in positive territory thanks to Fed Chair Powell's dovish comments and a continued rally in mega-cap stocks.
Just after Powell took the stage at a central bank forum in Sintra, Portugal, data released from the Bureau of Labor Statistics showed job openings rose slightly to 8.1 million in May from 7.9 million in April, topping economists' expectations. However, the Job Openings and Labor Turnover Survey (JOLTS) also showed April's figure was revised lower by 140,000.
Sign up for Kiplinger’s Free E-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.
The data underscores a resilient but slightly cooling labor market, which Powell said is "kind of what we were hoping to see, and what we have been seeing." He also highlighted the disinflation trend seen in recent economic reports, saying "quite a bit of progress" has been made in bringing the rate of price growth down.
However, the head of the central bank reiterated the familiar talking point that the Fed needs to see more data to make sure inflation is "moving sustainably toward 2%" before it can begin cutting interest rates.
Powell also said he would not give a specific date for when the central bank will start lowering rates. According to CME Group's FedWatch Tool, futures traders are pricing in a 63% chance the first quarter-point cut will come in September.
Tesla soars after Q2 deliveries data
Tesla (TSLA) stock rallied 10.2% – making it the best S&P 500 stock of the day – after the electric vehicle maker said it delivered a more-than-anticipated 443,956 vehicles in Q2. Today's upside is more of the same for the red-hot Magnificent 7 stock, which is up 60% since late April.
More recently, TSLA encountered "a wave of positive momentum following its annual meeting in mid-June, at which shareholders re-approved Musk's 2018 compensation plan," says CFRA Research analyst Garrett Nelson (Buy). "At the meeting, we think Musk successfully shifted investor focus to long-term opportunities in artificial intelligence (AI), robotics, energy storage, and other business lines, diverting attention away from near-term challenges."
Nelson says the next big event for the EV maker will be its upcoming Robotaxi Day on August 8, and "is likely to be much more important than either today's report or its July 23 earnings release, in our view."
CrowdStrike has run too far, too fast, says analyst
On the negative side of the ledger was CrowdStrike (CRWD), which fell 1.8% after Piper Sandler analyst Rob Owens downgraded it to Neutral from Overweight (the equivalents of Hold and Buy, respectively).
The downgrade is a "valuation call," Owens says following a roughly 50% year-to-date gain for the cybersecurity stock. Additionally, CrowdStrike's impressive growth off the price charts suggests that "meaningful upside will likely become more difficult as the law of large numbers should begin to weigh on overall growth rates for the security leader."
As for the main indexes, the Nasdaq Composite rose 0.8% to 18,028, the S&P 500 added 0.6% to 5,509, and the Dow Jones Industrial Average gained 0.4% to 39,331.
Related content
- 30 Early Walmart Deals Ahead of the Big Sales Event
- How to Find the Best Industrial Stocks
- When Is Amazon Prime Day?
-
Affordability Crisis: Florida Votes to Increase Property Tax BreakState Tax Property taxes have skyrocketed nearly 60% within the last five years in Florida, and its constituents are finally doing something about it.
-
Average Net Worth by Age: How Do You Measure Up?Financial advisors discuss the secrets to growing your net worth over time.
-
Three Charitable Giving Strategies for High-Net-Worth IndividualsIf you have $1 million or more saved for retirement, these charitable giving strategies can help you give efficiently and save on taxes.
-
The Wealth-Building Powers of Health Savings Accounts (HSAs)Health savings accounts could be the most underutilized wealth-building tool out there. Here’s who should use them and how to maximize their benefits.
-
Seven Ways to Be an Absolute Jerk as a LawyerHere's what law students need to know about damaging their relationships with other lawyers and judges and running up the bill for clients.
-
Stock Market Today: Stocks Are Positively Mixed to Open DecemberTechnology led the way Monday as two of the three main equity indexes closed higher.
-
The Best Retail Stocks to Buy This Holiday SeasonE-commerce is a growing trend, but most folks still prefer to shop in stores. That makes these dominant retail stocks worth a closer look.
-
One Good Way to Withdraw Retirement Assets (and a Bad One)Don't withdraw retirement assets haphazardly. Managing distributions intentionally can lower your taxes, conserve your wealth and reduce Medicare premiums.
-
What Is Capital Gains Tax Deferral?Spoiler alert: It's the secret weapon of savvy real estate investors. Here's how it works and details about the tools you need to do it.
-
Don't Leave Your Heirs an IRA Tax BombYour traditional IRA has served you well, but when your heirs inherit it, watch out. Consider some of these strategies to minimize their tax burdens.
