Stocks struggled for direction Monday, with benchmarks ending the trading session mixed, as investors continued to weigh inflation concerns against strong job market news from last week. The S&P 500 now sits about 0.3% from its intraday high record reached earlier in May, with Materials (NYSE: XLB) and Industrials (NYSE: XLI) pulling the average lower on Monday.
Meme stocks dominated the market on Monday, with AMC Entertainment (NYSE: AMC) rallying as much as 25% during the session and closing 15% higher, while both GameStop (NYSE: GME) and Blackberry (NYSE: BB) rose by double digits.
Here's how the market settled on Monday:
S&P 500 Index (NYSE: SPY): -0.08% or -3.42 points to 4,226.46
Dow Jones Industrial Average (NYSE: DIA): -0.36% or -126.81 points to 34,629.58
Nasdaq Composite Index (NASDAQ: QQQ): +0.49% or +67.23 points to 13,881.72
Tesla cancels Model S Plaid+ variant:
Tesla (NASDAQ: TSLA) has canceled the launch of its most expensive Model S variant, the Model S Plaid+, according to a series of tweets from CEO Elon Musk over the weekend. The company had previously promised the tri-motor, Plaid+ version of the flagship Model S sedan would offer 1,100 horsepower, 520 miles of range on a full charge, and acceleration from 0 to 60 miles per hour in less than two seconds.
"Plaid+ is canceled. No need, as Plaid is just so good," Musk tweeted. "0 to 60 mph in under 2 secs. Quickest production car ever made of any kind. Has to be felt to be believed."
Here's how the market started shortly after trading after open:
S&P 500 Index (NYSE: SPY): -0.19% or -8.05 points to 4,221.70
Dow Jones Industrial Average (NYSE: DIA): -0.14% or -48.62 points to 34,707.77
Nasdaq Composite Index (NASDAQ: QQQ): -0.08% or -11.30 points to 13,803.19
Yellen calls for Biden to push forward stimulus packages despite inflation fears:
U.S. Treasury Secretary Janet Yellen said in an interview with Bloomberg News on Sunday that President Joe Biden should push to pass his $4 trillion-combined spending packages even if they trigger inflation and high interest rates into next year.
"If we ended up with a slightly higher interest rate environment it would would actually be a plus from society's point of view and the [Federal Reserve's] point of view," Yellen said.
Yellen argued that since Biden's proposals would only add up to about $400 billion in spending per year, they would not be enough to cause long-term inflation. Any rise in prices resulting from the stimulus packages would fade in the next year, Yellen added.
"We've been fighting inflation that's too low and interest rates that are too low now for a decade," Yellen told Bloomberg. "We want them to go back to [a normal interest rate environment] and if this helps a little bit to alleviate things then that's not a bad thing--that's a good thing."
G-7 Nations reach historic global corporate tax reform:
The G-7 finance ministers have supported a U.S. proposal that calls for corporations around the world to pay at least a 15% tax on earnings over the weekend.
"G-7 finance ministers today, after years of discussions, have reached a historic agreement to reform the global tax system, to make it fit for the global digital age--and crucially to make sure that it's fair so that the right companies pay the right tax in the right places," U.K. Finance Minister Rishi Sunak announced in a video statement on Saturday, reported by CNBC.
If finalized, it would represent a significant change to global taxation. The members of the G-7 nations are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.