Dow Jones rose strongly in morning trade, along with the S&P 500 and Nasdaq composite, signaling a market rebound after the major indexes tumbled last week to their worst levels since late 2020. Treasury yields and crude oil futures rose, while Bitcoin rebounded from a sharp weekend plunge.
Electric-vehicle giant Tesla will cut 10% of its salaried jobs over the next three months, Chief Executive Elon Musk said Tuesday. Meanwhile, Chinese EV rival Li Auto unveiled a new hybrid sport-utility vehicle, the L9. Xpeng (XPEV) signaled a strong recovery in June deliveries, as the recent end of China’s Covid lockdowns and fresh EV subsidies is good news for Xpeng as well as Li Auto, Nio (NIO) and Tesla.
Tesla stock shot up soon after the open, after nearly undercutting its late May lows last week. Li Auto, Xpeng and Nio stock were heading for solid gains, continuing a strong rebound. China EV and battery giant BYD (BYDDF), which hit record vehicle sales in April and May despite’s China Covid restrictions, is not yet trading. But BYD stock has a new handle buy point just below record highs in a deep base.
Kellogg Split Into Three Companies
Kellogg said early Tuesday that it will split into three independent companies, focusing on global snacks, U.S. cereals and plant-based products.
Kellogg stock popped 3% to 69.52, around its 50-day line after briefly bouncing above that key level and breaking a downward-sloping trendline. Kellogg stock has a 75.76 buy point in a flat base that formed just above a double-bottom base.
Snack giant Mondelez (MDLZ) will buy energy bar specialist Clif Bar for $2.9 billion. MDLZ stock was flat.
Dow Jones Today
The Dow Jones jumped 1.8%. The S&P 500 popped 2.5% and Nasdaq surged 3%.
The Dow Jones Industrial Average sank 4.8% in last week’s stock market trading. The S&P 500 index tumbled 5.8%. The Nasdaq composite retreated 4.8%.
The 10-year Treasury yield gained 5 basis points to 3.29%. The benchmark yield climbed 8 basis points to 3.24% last week, but pulled back from an 11-year high of 3.48%.
Crude oil prices climbed 2%, lifting West Texas Intermediate crude futures above $110 a barrel. WTI tumbled more than 9% last week to $109.56 a barrel, sending oil stocks plunging.
Bitcoin moved above $21,000 after crashing to an 18-month low of $17,601.58 on Saturday.
Before the open, Lennar reported better-than-expected earnings and revenue during the second quarter. Per-share earnings leapt 59% with revenue up 30%. That comes as soaring mortgage rates appear to be chilling housing demand. Lennar shares rose 5%.
At 10 a.m. ET, the National Association of Realtors reported May existing-home sales fell 3.4% to an annual rate of 5.41 million, but that was better than expected. Later this week, KB Home (KBH) will report quarterly results with the Commerce Department issuing May new-home sales data on Friday.
JetBlue Ups Spirit Airlines Again
Read More News: Stocks Jump; Tesla Soars, Kellogg Pares Gains