US close: Legacy carmakers surge on mixed day for stocks

dl general motors gm chevrolet buick gmc cadillac carmaker car vehicle manufacturer us usa united states of america pd — General MotorsSharecast / public domain image

Wall Street stock markets closed in a mixed fashion on Tuesday, with the Dow reaching a new all-time high, following the release of slightly weaker-than-expected economic data.

At the close, the Dow Jones Industrial Average was up 0.59% at 36,799.65, while the S&P 500 slipped 0.06% to 4,793.54, with lagging technology plays dragging the Nasdaq Composite down 1.33% to settle at 15,622.72.

“Wall Street kept things fizzing with another flutter over the $3trn mark by Apple - the tech giant seemingly uncowed by supply chain issues and the slow squeeze on household budgets,” said AJ Bell financial analyst Danni Hewson.

“The figure is so incomprehensible to most people, it really is just a number.

“What investors will be watching for is how long it will take for the next tech innovation to make it to market and how quickly cash-strapped consumers can be persuaded to shell out to possess it.”

Hewson said that Tesla’s sparkle, meanwhile, had faded somewhat, although there was “little doubt” that 2022 would be a pivotal year for the electric vehicle industry.

“Old timers are coming up with new tricks and news from Ford that it’s set to double production of its F150 Lightning pickup set pulses racing, whilst Toyota nabbed the mantle of best-selling car maker in the US for the first time,” Hewson noted.

“Change is most definitely afoot, and if manufacturers can bulldoze their way through supply issues, the next 12 months offer mouth-watering opportunities.”

The apparent enthusiasm in the markets came despite the Omicron wave of Covid-19 infections continuing to break records stateside, with Johns Hopkins University data showing 1.08 million new infections on Monday to more than double the previous high set just four days prior.

Omicron was still appearing to be causing less serious illness, however, with hospitalisations rising 41% over the past fortnight to reach a seven-day average of almost 98,000 on Monday - still below the pandemic peak of 137,510 a year ago, and the record of 102,967 seen during the Delta wave in September.

On the economic front, the Institute for Supply Management's factory sector purchasing managers' index (PMI) slipped to 58.7 in December, from November's print of 61.1.

Analysts at Barclays had been anticipating a reading of 61.0, while the sub-index tracking the prices paid by firms suffered a big drop to 68.2 from 82.4.

The Department of Labor's JOLTS job market survey, meanwhile, revealed a drop in the number of job openings to 10.56 million in November, from 11.09 million in October.

In equity markets, carmakers were in focus, with Ford rocketing 11.67% to reach a 21-year high after announcing plans to near-double Michigan production of its F150 Lightning pickup truck to 150,000 vehicles annually.

Ford’s longtime foe General Motors accelerated ahead by 7.47% after the maker of Chevrolet and Buick cars said semiconductor supply problems eased in the fourth quarter.

GM said it delivered 43% fewer vehicles in the last three months of 2021, while sales were at their highest in 13 years, and inventory at dealerships rose 55% from their record lows at the end of the third quarter.

On the downside, consumer electronics behemoth Apple was among the losers in the tech space, retreating 1.3% after it momentarily breached the $3trn market cap level during Monday’s session.

Dow Jones - Risers

Caterpillar Inc. (CAT) $218.08 5.35%
JP Morgan Chase & Co. (JPM) $167.83 3.79%
American Express Co. (AXP) $173.63 3.21%
Goldman Sachs Group Inc. (GS) $407.36 3.07%
Boeing Co. (BA) $213.63 2.78%
Dow Chemical Co. (DOW) $58.41 2.71%
Travelers Company Inc. (TRV) $159.00 2.09%
Verizon Communications Inc. (VZ) $53.47 1.96%
Chevron Corp. (CVX) $121.46 1.82%
Coca-Cola Co. (KO) $60.29 1.67%