* Tesla‘s China-made car sales up 29% in May from April
* FAANGs up slightly after G7 tax plan
* Meme stocks gain as short squeeze continues
* Indexes: Dow down 0.08%, S&P up 0.15%, Nasdaq up 0.69% (Updates to market open)
By Ambar Warrick and Shashank Nayar
June 8 (Reuters) – Apple was the top boost to the Nasdaq on Tuesday after a report said it was in talks with battery suppliers over its electric vehicle, while the S&P 500 and the Dow Jones indexes were muted as investors awaited key inflation data this week.
Shares of the iPhone maker rose 1.9% after sources told Reuters the firm was in early-stage talks with China’s CATL and BYD about the supply of batteries for its planned electric vehicle.
Major technology stocks were trading higher, with Alphabet , Amazon and Netflix rising between 0.4% to 1.2% as investors digested the possible impact of a global plan to increase taxes on major multinational firms.
Still, Wall Street appeared to have fallen into a lull this week, having moved little on Monday after surging to record highs through a strong earnings season in May.
Investors are now awaiting further cues on policy tapering from the Federal Reserve after what is expected to be a strong inflation reading on Thursday.
“It’s a very good and healthy pause the markets have taken right now and I would expect it to remain range-bound for now until any data that comes as a surprise,” said Sean O’Hara, president of Pacer ETFs in Malvern, Pennsylvania.
“Investors, however, are still a little jittery about inflation as they try to figure out if it is still a supply side issue or a more systemic one.”
The U.S. economy is set for a sharp bounceback from a COVID-induced slump, with recent inflation data indicating as much. But the labor market- a key factor for the Fed to consider tapering policy – has stalled in its recovery.
At 9:47 a.m. ET, the Dow Jones Industrial Average was down 28.13 points, or 0.08%, at 34,602.11 and the S&P 500 was up 6.25 points, or 0.15%, at 4,232.77. The Nasdaq Composite was up 95.89 points, or 0.69%, at 13,977.61.
Planemaker Boeing rose 0.2% after Southwest Airlines said it will add 34 737 MAX 7 aircraft to its 2022 orders.
Shares of Clover Health Investments Corp and other “meme stocks” surged as small-time individual investors piled into some of the most heavily shorted U.S. stocks.
The S&P index recorded 25 new 52-week highs and one new lows, while the Nasdaq recorded 72 new highs and five new lows. (Reporting by Ambar Warrick and Shashank Nayar in Bengaluru; Editing by Maju Samuel)