Stocks on Wall Street and in Europe recovered some of Friday’s losses with investors returning to buy the dip in a broad rally as they shook off soft US jobs data and US President Donald Trump’s sacking of the head of the Bureau of Labor Statistics.
Tesla was on the green side of the ledger after the electric vehicle maker’s board approved a 96 million share stock award for chief executive Elon Musk to keep him interested in the Magnificent 7 company, while new data showed the mercurial leader’s support for the Trump regime dented previously strong customer loyalty in the US.
Berkshire Hathaway started the week on the backfoot after its soft operating profit result over the weekend, while Palantir Technologies rallied ahead of its earnings report.
And among the raft of new companies looking to list in New York, a new SPAC targeting US manufacturers counts Eric Trump and Donald Trump Jr among its advisers.
The dip gets bought
US stock markets bounced back from their Friday slump with the S&P 500 up 1.3% in late trading in a broad-based rally including heavyweights such as Nvidia through to meme stocks including Opendoor Technologies.
“After a spicy end to markets last week following the shocking downward revision to US non-farm payrolls and Trump’s sacking of the head of the Bureau of Labor Statistics, the new week has begun with mixed results,” Bank of New Zealand senior markets strategist Jason Wong said in a note. “US equities have bounced back strongly, with the S&P500 up 1.3% with an hour left of trading – investors seeing dips in the market as a buying opportunity and not fearing signs that the labour market might be much weaker than previously thought.”
European stock markets also recovered, with the UK’s FTSE 100 up 0.7% with banks leading the British bourse higher, and Germany’s DAX 30 gaining 1.4%. Switzerland’s SMI index dipped 0.2% after the European nation was knocked by an unexpectedly high tariff rate from US President Donald Trump last week.
BP rose 1.8% after the oil major said it made its biggest oil and gas discovery in 25 years off the coast of Brazil.
Keep ‘im keen
Tesla gained 2% in late trading after the EV company awarded chief executive Elon Musk stock awards worth US$29.6 billion to keep him interested in the company as his attention gets drawn to his other ventures, such as xAI and SpaceX. A previous stock option award was overturned by a Delaware court, prompting Tesla’s shift to Texas.
Separately, Reuters reported S&P Global Mobility data showed Tesla’s previously loyal fanbase in the US fell out of love with the brand after Musk’s endorsement of Trump in last year’s election.
Berkshire Hathaway was one of the weaker performers on the S&P 500, falling 3.1% in late trading after reporting a soft result over the weekend.
US corporate earnings have largely beaten analysts’ relatively subdued expectations in the June quarter. Since then, predictions for the September quarter have been raised.
Palantir is due to report after the bell and was up 4% in late trading. McDonald’s and Walt Disney Co are among companies reporting this week.
New blood
The appetite for new listings in the US continues to recover, with Northrop Grumman-backed space startup Firefly Aerospace targeting a valuation of US$6.04 billion in its initial public offering, while Blockchain-based credit firm Figure Technology Solutions has filed confidential paperwork to go public later this year.
Meanwhile, special purpose acquisition company New America Acquisition I Corp filed for a US$300 million IPO targeting US manufacturing to tap into Trump’s America First policy, and counts Eric Trump and Donald Trump Jr among its advisers.
Australian futures are pointing to a 0.9% gain for the S&P/ASX 200 index when trading opens across the Tasman, and the kiwi dollar traded at 59.01 US cents at 7am in Auckland from 59.13 cents yesterday.
No local data are scheduled for today, while Asset Plus is holding its annual meeting in Auckland.
Reporting by Paul McBeth. Image from Jonas Leupe on Unsplash.
