Dow Surges 346 Points; Nasdaq Jumps to New Record for Third Straight Day
Here Are 3 Hot Things to Know About Stocks Right Now
- The Nasdaq posted a new record close for the third consecutive day.
- The Nasdaq and S&P 500 rose for a fourth straight day.
- Tesla Inc. (TSLA) jumped 9.7% after CEO Elon Musk says the company can meet its production goals for the Model 3.
Wall Street Overview
Stocks soared on Wednesday, June 6, with the Nasdaq posting more gains after closing at a record high the last two trading sessions.
The Dow Jones Industrial Average finished up 346 points, or 1.4%, to 25,146. The S&P 500 was up 0.86% and the Nasdaq rose 0.67% to 7,689.24. The tech-heavy Nasdaq rose to a record closing high for the second straight day on Tuesday, finishing at 7,637.86.
Tesla Inc. (TSLA) shareholders voted Tuesday to have Elon Musk maintain his roles as chairman and CEO of the electric carmaker despite calls for Musk to be ousted as chairman.
At Tesla’s annual meeting, Musk also claimed that the company would produce 5,000 of the troubled Model 3 electric sedan per week by the end of June. Musk said Tesla already has been able to make 500 Model 3s a day, or 3,500 a week.
Musk also said Tesla wouldn’t need to raise “incremental” equity or debt in 2018.
Tesla shares rose 9.7% on Wednesday.
Facebook Inc. (FB) shares fell 0.83% after the social networking giant said several Chinese companies, including one probed by U.S. security officials, were given preferred access to user data.
Action Alerts PLUS holding Facebook confirmed late Tuesday that Huawei, the world’s third-largest handset maker that was banned from bidding on U.S. government contracts four years ago because of security concerns, was one of the 60 companies revealed to have been granted access to Facebook’s API, or application program interface, under various commercial agreements. The access, first revealed in a New York Times report over the weekend, also was granted to three other China-based groups, raising the ire of U.S. lawmakers.
Twitter Inc. (TWTR) shares rose less than 1% Wednesday after the microblogging website unveiled plans to raise $1 billion through a convertible bond issue following its inclusion into the S&P 500 later this week.
Twitter said the bonds would be “convertible into cash, shares of Twitter’s common stock, or a combination thereof, at Twitter’s election” and priced based on market conditions. It also said it will allow initial buyers to purchase an additional $150 million of the six-year note offering. Twitter will replace Monsanto Co. (MON) in the S&P 500 benchmark after the company’s $63.5 billion merger with German chemicals group Bayer AG closes on Thursday, June 7.
Athenahealth Inc. (ATHN) rose 4% after the company said it has begun exploring “strategic alternatives,” including a sale or merger, and said CEO Executive Jonathan Bush stepped down.
International Paper Co. (IP) walked away from a proposed €9.5 billion ($11.29 billion) offer for Smurfit Kappa Group PLC, blaming a lack of engagement by the Irish packaging materials company. International Paper shares rose 3%.