US open: Stocks little changed, EV makers' shares jump

rivian dl manufacturing us auto ev car technology — Rivian

Tesla Motors Inc

$254.03

09:35 05/11/24

4.61%

$11.19

US stock market indices were roughly flat at the start of the holiday-shortened week, although shares of electric vehicle makers Tesla and Rivian were registering sharp gains.

Rivian Automotive Inc

$10.48

09:35 05/11/24

1.88%

$0.19

At 1608 BST, the Dow Jones Industrial Average was edging up 0.01% to 34,413.95, the S&P was ahead 0.02% to 4,451.55 and the Nasdaq Composite was off by 0.02% at 13,784.75.

The yield on the benchmark 10-year US Treasury note was roughly flat alongside at 3.848%.

Commenting on the market backdrop, IG chief market analyst Chris Beauchamp said: "The first half of the year finished with most indices heading higher. The bullish atmosphere from Friday has not carried over into the new week however, mainly thanks to the US holiday tomorrow.

"But EV stocks have been in focus following Tesla’s solid numbers, as investors push back into the sector on hopes of a continued recovery in delivery numbers. After the caution of the first half, a lot of investors will be looking to put their money to work, even if it comes after six months of solid gains."

Wall Street was scheduled to close early on Monday ahead of the 4 July holiday and would remain closed during the following day.

In equity markets, Tesla jumped nearly 7% after the electric car maker reported record delivery numbers.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Tesla’s cut price gamble appears to be paying off handsomely as it makes deeper inroads into the Chinese market.

"Offering more affordable price tags has been a shrewd move in other markets too, where consumers have been grappling with the cost-of-living crisis but are still eager to join the electric vehicle revolution."

Shares of rival EV maker Rivian were also on the move, jumping 11% after reaffirming its production guidance of 50,000 EV for 2023, twice the prior year tally.

And according to Bloomberg the company had internally told staff that 62,000 units was feasible.

The latest economic news was underwhelming as the Institute for Supply Management's factory sector index plumbed a fresg cycle low of 46.0, down from 46.9 during the previous month (consensus: 47.0).

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