A solid start to the week on Wall Street Monday after a volatile couple of days.
The Dow roared ahead with a 646-point gain. The S&P 500 rose 53. The Nasdaq gained 139.
Victoria Greene, chief investment officer at G-Squared Private Wealth, says the market is benefitting from a rotation back into value names that do well in an inflationary environment.
“So if you think about it, all of a sudden last week the Fed came out a little bit more hawkish, right？ And kind of spooked the market. A little bit of that is tapering is going to go faster, markets pricing in three rate hikes now next year, and that scares growth a little bit more than that scares value. Typically, a rate hike inflationary environment is very good for cyclicals and value. So you're seeing the rallies in financials, industrials, energies. And that's what's really leading the market today.”
Kohl's was a stand-out stock. The department store chain was urged by investor and hedge fund Engine Capital to consider putting itself up for sale or at least spin-off the retailer's e-commerce business. Kohl's responded by saying it continues to examine all opportunities for maximizing shareholder value. Kohl's jumped more than 5 percent on the day.
Tesla shares headed in the other direction. The Securities and Exchange has opened an investigation into allegations made by a Tesla whistleblower that the company did not adequately disclose risks of fire for solar panels made by Solar City either before or after Tesla bought the solar energy provider, according to documents seen by Reuters. Shares of Tesla finished with a small loss.
But there were much sharper declines for BuzzFeed. The company had a terrible debut after coming to market via a SPAC – a special purpose acquisition company. Investors wanted out of the deal before the company even went public. Shares of the digital media company slumped 11 percent.
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