On Wednesday, U.S. stocks saw a modest boost, reaching a new peak once more. The S&P 500 experienced a half a percent increase, achieving an all-time high three times in four days, emblematic of bullish market sentiments. However, the Dow Jones Industrial Average saw a marginal decrease of 10 points, a change of less than 0.1%. In contrast, the Nasdaq composite experienced an uptick, registering gains of approximately 0.9%.
Contributing to the upward trajectory was the venerable automaker Tesla, which reported a 5% rise in its stock value following the announcement of its recent delivery stats. Nearly 374,000 units of its Model 3 and Model Y cars were shipped in the last quarter, surpassing analysts’ forecasts. Despite a year-over-year overall decline in sales by 13%, market participants were evidently upbeat about the impressive delivery numbers.
The market has been abuzz with talk regarding Tesla CEO Elon Musk’s active participation in politics, which some believe could act as a deterrent for prospective Tesla customers. Despite this, the company’s recent promising delivery figures largely overshadowed these discussions, igniting optimism among many investors.
Another notable market mover was Constellation Brands, which notched up a healthy 4.5% increase, even on the back of disappointing profit results for the most recent quarter. Industry insiders attribute the dampened profits to a slowdown in job expansion in sectors like construction, which usually contribute significantly to the demand for its beer products.
Even less-than-anticipated profit margins didn’t prevent Constellation Brands from maintaining its profit projections for the ensuing fiscal year. The company, popular for offerings such as Modelo beer and Robert Mondavi wine, remained committed to its financial forecasts for the near future.
Opposing this positive trend was the health care company Centene, which faced the biggest single-day debacle since its inception in 2001, with its stock performance plunging dramatically by 40.4%. The cause for this drastic fall was the company’s decision to withdraw its profit estimates for the current year, prompted by data showing alarming sickness trends in several states where it conducts its operations.
In a broader view, the S&P 500 added 29.41 points, ending the day at 6,227.42. The Dow Jones Industrial Average decreased by a marginal 10.52 points, settling at 44,484.42. In the meantime, the Nasdaq Composite rose 190.24 points, finishing at 20,393.13.
In bond markets, Treasury yields showed mixed signs ahead of a much-anticipated report that will reveal data concerning job creation and redundancy in the past month. The general expectation hints at a net job gain, despite a projected slowing down of the hiring rate when compared to the previous month of May.
A surprisingly weak report released on Wednesday morning caused anxiety among many as it indicated potential shortcomings in job growth estimates. According to ADP, non-governmental U.S. employers reduced their staffing levels by 33,000 last month, a stark contrast to the predicted growth of 115,000 jobs.
Nevertheless, the ADP report’s prediction success has been hit-or-miss, which leaves room for the upcoming official government jobs report to present a more optimistic picture. Uncertainty surrounding impending trade tariffs is feared to possibly inhibit employers from hiring, with several import taxes currently in abeyance, due to become effective shortly.
Recent news of a trade pact with Vietnam, which ensures no tariffs on U.S. products sold there and a mere 20% tariff on goods imported from Vietnam into the U.S., seemed to buoy certain sectors. Emblematic was Nike, the sports apparel giant, which saw a stock surge of 4.1% as it sources a significant portion of its products from Vietnam.
Apart from tariffs, employment rates could also be affected by a variety of other factors. One such example is the U.S. government’s cessation of protected status for 350,000 Venezuelans, potentially making them vulnerable to deportation. This situation alone could potentially impact the payrolls by around 25,000 jobs.
In the bond market, the 10-year Treasury saw a slight rise in yield, clocking in at 4.28% from 4.26% the previous Tuesday. In close relation, the two-year Treasury yield, which more accurately reflects the Federal Reserve’s near-term interest rate expectations, remained stable at 3.78%.
On the global stage, foreign stock markets displayed mixed results as the world keenly observed the pending U.S. tariff decision. While France’s CAC 40 and Hong Kong’s Hang Seng Indices experienced gains of 1% and 0.6% respectively, Japan’s Nikkei 225 Index and South Korea’s Kospi Index fell 0.6% and 0.5%, respectively.