Stocks hit records as $1.2T infrastructure bill clears Congress, Tesla falls
U.S. stocks ticked into record territory Monday after the bipartisan infrastructure bill sailed through Congress.
The gains came after the House of Representatives on Friday evening passed the $1.2 trillion infrastructure bill that provides money for hard infrastructure, such as roads and bridges, while also granting funds for broadband, electric vehicles and other projects. The House now turns its attention to Biden‘s social spending plan that Democrats hope to pass via budget reconciliation.
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In stocks, infrastructure-linked names, including Caterpillar Inc., Nucor Corp. and Deere & Co., rallied after Congress passed the long-anticipated infrastructure bill.
Elsewhere, Tesla Inc. shares were sharply lower after CEO Elon Musk polled Twitter users about whether he should sell 10% of his stock. Musk will face a large tax bill once a portion of his stock options is exercised in the coming months.
In earnings, Berkshire Hathaway Inc. reported operating profit jumped 18% last quarter as its energy, utilities and railroad businesses continued to bounce back from the pandemic. The Warren Buffett-led conglomerate finished the quarter with a record $149.2 billion in cash.
Coty Inc. posted quarterly earnings and revenue that exceeded Wall Street estimates and announced a deal to sell a 4.7% stake in hair care company Wella to private equity firm KKR. Once the deal closes, KKR will own 2.4% of Coty.
AMC Entertainment Holdings Inc. and PayPal Holdings Inc. are among the companies scheduled to report their quarterly results after Monday’s closing bell.
In commodities, West Texas Intermediate crude oil jumped 66 cents to $81.93 a barrel and gold edged up $11 to $1,827.40 an ounce.
Overseas trading was choppy.
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In Asia, China’s Shanghai Composite rose 0.2% while Japan’s Nikkei 225 and Hong Kong’s Hang Seng index slid 0.35% and 0.43%, respectively.