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Tesla gains on higher sales of China-made electric
vehicles
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Virgin Orbit falls after filing for bankruptcy
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AMC Entertainment slumps after litigation deal
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Indexes up: Dow 0.02%, S&P 0.09%, Nasdaq 0.06%
(Updates to market open)
By Ankika Biswas and Amruta Khandekar
April 4 (Reuters) - Wall Street's main indexes were
muted on Tuesday as investors awaited key economic data that
could decide the U.S. Federal Reserve's monetary tightening
path, with gains in shares of Tesla capping losses on the S&P
500 and the Nasdaq.
Tesla Inc rose 1.7% in early trade as sales of its
China-made electric vehicles rose in March, bouncing back from
6% declines on Monday following data on March-quarter
deliveries.
The stock's move made consumer discretionary shares the top gainer on the S&P 500, while energy stocks edged lower after a strong rally on Monday.
Rising oil prices following the OPEC+ group's output cuts
have renewed fears about inflation, denting hopes of an end to
aggressive interest rate hikes despite recent signs of cooling
prices and turbulence in the banking sector.
"We think that it (soaring oil prices) will cause inflation
to remain sticky and the Fed definitely wants to ensure that
they have a stranglehold on inflation before they take their
foot off the brake," said Sam Stovall, chief investment
strategist of CFRA Research in New York.
Bets by traders of a 25-basis point rate hike in May stood
at 60%, with odds of a pause at 40%, according to CME Group's
Fedwatch tool.
Later on Tuesday, investors will watch out for data on U.S.
job openings that is likely to show a fall in February, as they
attempt to assess if the aggressive rate hikes have cooled the
economy to the Fed's satisfaction.
A separate report expected is likely to show factory orders
fell 0.5% in February and will come on the heels of surveys
showing weak U.S. manufacturing activity in March.
"Factory orders are expected to show a decline. That would
imply that the war against inflation is working," Stovall said.
The S&P 500 and the tech-heavy Nasdaq have gained
7.5% and 16.5% so far in 2023, steadying from their worst annual
drop last year since the 2008 financial crisis.
At 9:39 a.m. ET, the Dow Jones Industrial Average was
up 5.83 points, or 0.02%, at 33,606.98, the S&P 500 was
up 3.91 points, or 0.09%, at 4,128.42, and the Nasdaq Composite was up 7.55 points, or 0.06%, at 12,197.00.
Among stocks, Virgin Orbit Holdings Inc tanked
20.1% after the satellite launch company filed for Chapter 11
bankruptcy on failing to secure long-term funding.
AMC Entertainment Holdings Inc shares tumbled 15.9%
after the movie theater chain said it agreed to settle
litigation and proceed with converting its preferred stock into
common shares.
Shares of Digital World Acquisition Corp fell 4.3%
after the SPAC linked to former U.S. President Donald Trump
delayed the filing of its annual financial report.
Advancing issues outnumbered decliners for a 1.10-to-1 ratio
on the NYSE and a 1.27-to-1 ratio on the Nasdaq.
The S&P index recorded nine new 52-week highs and no new
low, while the Nasdaq recorded 36 new highs and 38 new lows.
(Reporting by Ankika Biswas in Bengaluru; Additional reporting
by Shristi Achar A; Editing by Arun Koyyur and Shounak Dasgupta)
