Enthusiasm for tech shares ahead of busy week for tech earnings pushed the Nasdaq and the S&P 500 to record closing highs. Conway G. Gittens has the market action.
Optimism ahead of a big week for tech earnings sent the S&P 500 and the Nasdaq to fresh record closing highs on Monday.
The Dow was left out of the record-making - with a 61-point decline. The S&P 500 rose 7 points. The Nasdaq enjoyed a gain of 121 points.
With the Federal Reserve likely to remain on the sidelines even if the economy gets a little hot, stocks remain the best investment game in town, says Hilary Kramer of Kramer Capital.
"The Fed is going to talk this week and we're going to hear about inflation Friday. No one is really worried because inflation is about specific areas of inflation, but general inflation is still muted and under two percent, even though we all know what's happening. So this stock market, we are going to hear that earnings were great because we're coming out of the pandemic and we're going to hear guidance that is going to be very optimistic. And that guidance is why the market is so excited."
Tesla was the first of the big tech names out of the gate this week. The electric car maker posted record deliveries, which helped it beat sales forecasts. It said it was able to navigate through the global chip supply shortage hurting the industry - in part by pivoting rather quickly to new microcontrollers.
Apple is stepping up its push on privacy. The company started enforcing a rule introduced last year requiring developers to use a pop-up notification to get user permission to gather data that can be used to track users across third-party sites and apps. Facebook has railed against the rule, saying it could harm its ad customers. Shares of Apple were up slightly. Facebook was up as well.
Spotify is raising prices for some of its subscription plans in the U.S. and the United Kingdom starting this week. Existing customers will have a grace period. Investors cheered the minimal price hike. Shares of the streaming music company jumped nearly five percent.