Tech stocks rebounded Tuesday from a two-day slump. Bank and materials stocks drove the Dow and S&P 500 to record highs. Fred Katayama reports.
Tech stocks bounced back Tuesday from a steep two-day slump. Bank stocks continued to gain ground one day ahead of an expected interest rate hike by the Federal Reserve. Financial and materials stocks helped drive the Dow and S&P 500 to record highs. First Standard Financial's Peter Cardillo. SOUNDBITE: PETER CARDILLO, CHIEF MARKET ECONOMIST, FIRST STANDARD FINANCIAL, (ENGLISH) SAYING: "For a long time, the market was basically relying on a handful of stocks in the Nasdaq arena. And that basically propelled the rest of the market. But we really haven't had a broadening out of the market. And I think this could be the beginning of it." Tesla shares sped higher. Berenberg upgraded the electric vehicle maker's shares to "buy" from "hold." Sears shares fell. The retailer is cutting 400 jobs as part of its plan to save more than $1 billion annually in costs. Cheesecake Factory's stock dropped sharply. The restaurant chain operator warned same-store sales would decline in the current quarter. Oil prices rose Tuesday. But the steep decline in energy costs kept U.S. producer prices unchanged in May, suggesting a moderation in inflation. Tech stocks also powered European markets higher. But Britain's FTSE closed slightly down.