Close Update: S&P 500 Perched Near All-Time High on Gains in Energy and Financial Shares

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Wall Street's major averages were set to close at their highs of the day with a rally in Chinese shares and strength in the energy complex driving the S&P 500 within striking distance of an all-time high. All but three of the S&P 500 sectors were trading higher Tuesday with energy, financials and industrials outperforming.

China set into motion today's gains on Wall Street as a surge in the Shanghai translated into sizable gains across Europe before spilling into the US. Chinese shares were driven higher overnight amid reports that Beijing would allow pension funds to invest in stocks. The news snapped a four-day losing streak in the Shanghai and contributed to a 100 points gain in the Dow at Tuesday's open.

The upswing gained momentum with the release of better-than-expected labor market data. Job openings continued to outstrip the number of available workers as the job openings and labor turnover survey (JOLTS) for June increased to 6.662 million from May's revised 6.659 million, beating estimates of 6.650 million.

Oil futures were bid higher as investors factored in supply pressures from US sanction against Iran and diminished Saudi production. Brent crude rose to a five-day high before running into profit-taking pressure at its 50-day moving average.

In corporate news, Tesla ( TSLA ) CEO Elon Musk teased the possibility of taking the company private at $420 per share, triggering a buying frenzy that drove the stock just shy of its all-time high of $389. In an email, Musk assured employees the company would operate more efficiently and without distraction from "wild stock swings" in its stock price.

Apple ( AAPL ) backed away from another all-time high in response to an article in China's state-run newspaper accusing the company of profiting from cheap labor and strong Chinese supply chain without sharing its profits with the Chinese people. The People's Daily warned the company could face "anger and nationalist sentiment" and possibly be used as a bargaining chip in the amid the US/China trade war.

A disappointing start to the US Treasury's $78 billion refunding this week drove the yield on the 10-year note closer to the 3% threshold, giving a boost to banking stocks and the US dollar against the Japanese yen.


Dow Jones Industrial Index was up 126.86 points (+0.50%)

S&P 500 was up 8.34 points (+0.29%)

Nasdaq Composite Index was up 23.99 points (+0.31%)


FTSE 100 was up 0.71%

Nikkei 225 was up 0.69%

Hang Seng Index was up 1.54%

Shanghai China Composite Index was up 2.74%


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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