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.
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.
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.
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.)
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.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.
Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.
You can check out his thoughts on the markets (and more) at @KyleWoodley.
-
Advanced Micro Devices Stock Sinks on Dismal Guidance. What to Know
Advanced Micro Devices is one of the worst S&P 500 stocks Wednesday after the chipmaker's Q4 outlook left Wall Street wanting more.
By Joey Solitro Published
-
Why Reddit Stock's an Even Bigger Buy After Earnings
Reddit stock is soaring Wednesday after the social media firm's blowout earnings report and upbeat guidance and analysts are rushing to raise price targets.
By Joey Solitro Published
-
If You'd Put $1,000 Into Google Stock 20 Years Ago, Here's What You'd Have Today
Google parent Alphabet has been a market-beating machine for ages.
By Dan Burrows Published
-
Stock Market Today: Stocks Renew Rally Ahead of Mag 7 Earnings
The Dow Jones led the major indexes higher on the strength of old-school industrial stalwart 3M.
By David Dittman Published
-
Stock Market Today: Stocks at Record Highs as Earnings Season Ramps Up
Markets continued where they left off last week amid rising optimism over corporate profits.
By Dan Burrows Published
-
5 Stocks to Buy for a Trump Presidency
The race for the White House is heating up and these five stocks are set to benefit if Donald Trump claims victory.
By Will Ashworth Last updated
-
Stock Market Today: Stocks Retreat Ahead of Nvidia Earnings
Markets lost ground on light volume Wednesday as traders keyed on AI bellwether Nvidia earnings after the close.
By Dan Burrows Published
-
Stock Market Today: Stocks Edge Higher With Nvidia Earnings in Focus
Nvidia stock gained ground ahead of tomorrow's after-the-close earnings event, while Super Micro Computer got hit by a short seller report.
By Karee Venema Published
-
Stock Market Today: Dow Hits New Record Closing High
The Nasdaq Composite and S&P 500 finished in the red as semiconductor stocks struggled.
By Karee Venema Published
-
Stock Market Today: Stocks Pop After Powell's Jackson Hole Speech
Fed Chair Powell's Jackson Hole speech struck a dovish tone which sent stocks soaring Friday.
By Karee Venema Published