Wall Street ends little changed in shortened session, Tesla jumps

• Tesla reports positive vehicle deliveries in the second quarter
• Bank stocks rise after dividend increase
• US 2-year and 10-year Treasury yield curves hit deepest inversion since 1981
• The stock market closes at 1pm ET ahead of the July 4th holiday

July 3 (Reuters) – The S&P 500 (.SPX) ended Monday’s holiday-shortened session little changed, starting the second half of the year on a muted note, as gains in Tesla and bank stocks were offset by weakness in the healthcare sector.

Tesla (TSLA.O) shares soared as the electric vehicle maker said it delivered a record number of vehicles in the second quarter.

Stocks of big banks like Wells Fargo (WFC.N) and Goldman Sachs (GS.N) gained after raising dividends while passing the Federal Reserve’s annual health check.

“There are a lot of people that just aren’t in the market today,” said Chuck Carlson, CEO of Horizon Investment Services in Hammond, Indiana. “Right now nobody’s really making big bets on one side of the market or the other.”

According to preliminary data, the S&P 500 (.SPX) gained 4.75 points, or 0.11%, to close at 4,455.13 points, while the Nasdaq Composite (.IXIC) gained 29.01 points, or 0.21%, to 13,816 .93 gained. The Dow Jones Industrial Average (.DJI) was up 7.02 points, or 0.02%, at 34,414.62.

The exchange closed at 1:00 p.m. ET on Monday, ahead of the Fourth of July Independence Day Tuesday.

A widely watched section of the US Treasury yield curve hit the deepest inversion since 1981, reflecting financial markets’ concerns about the economy.

A survey showed US manufacturing slumped further in June, reaching levels last seen as the economy suffered from the first wave of the COVID-19 pandemic.

Shares closed higher on Friday, capping a strong first half for the major stock indices. The Nasdaq Composite (.IXIC) posted its biggest gain in 40 years for the first half, rising 31.7%.

Outsized gains for megacap stocks have led indices this year, but recent signs point to a widening rally.

“You have a stronger market and the likelihood of a more sustained uptrend when you have broader strength,” Carlson said.

Reporting by Lewis Krauskopf in New York, Bansari Mayur Kamdar and Johann M. Cherian in Bengaluru; Adaptation by Pooja Desai, Vinay Dwivedi and Richard Chang

Our standards: The Thomson Reuters Trust Principles.

Bansari Mayur Kamdar

Thomson Reuters

Bansari covers global financial markets and writes Reuters’ daily flagship market reports on equities, bonds and currencies. An economist by training and winner of the Arthur MacEwan Award for Excellence in Political Economy, she has written for renowned global newspapers and magazines including The Diplomat, Boston Globe, Conversation, Huffington Post and more.