Tesla Drives Nasdaq to Record Closing High; Dow Gains More Than 400 Points

The Nasdaq closes at an all-time high and the Dow rises more than 400 points as stocks continue their rally from last week's sharp selloff.
Author:
Updated:
Original:
  1. The Nasdaq closed at an all-time high and the Dow Jones Industrial Average soared Tuesday as stocks continued their rally from last week's sharp selloff.
  2. Alphabet is Real Money's Stock of the Day. The parent of Google posted mixed fourth-quarter earnings and surprisingly broke out detailed information about several of its important businesses.
  3. Tesla shares topped $900 for the first time on Tuesday before ending at $887.

The Nasdaq closed at an all-time high as stocks finished sharply higher Tuesday for a second consecutive session on investor bets that global growth won't be dented as much as once feared by the coronavirus.

China's National Health Commission has confirmed 427 deaths linked to the coronavirus, as well as more than 20,600 global cases, most of which remain within the boundaries of Huebi province, home to Wuhan, the city that is ground zero for the outbreak. But the spread of the virus outside China's boundaries has slowed from late last week.

The Nasdaq gained 2.10% to 9,467.97, an all-time closing high as shares of Tesla (TSLA) - Get Report soared. The Dow Jones Industrial Average finished up 408 points, or 1.44%, to 28,807.63. The S&P 500 ended up 1.50% to 3,297.59.

Leading the Dow higher were Caterpillar (CAT) - Get Report, Microsoft (MSFT) - Get Report, and Apple AAPL.

U.S. stocks rallied Monday as stocks rallied from Friday's sharp selloff on the strength of stronger-than-expected manufacturing activity data for January and a decline in oil prices.

President Donald Trump will make his "State of the Union" address at 9 p.m. ET on Tuesday, one day after the inconclusive Iowa caucuses and the day before his impeachment trial is expected to end in the Senate with an acquittal.

Shares of Alphabet (GOOGL) - Get Report fell Tuesday after the parent of Google posted mixed fourth-quarter earnings and surprisingly revealed detailed information about several of its important businesses.

Alphabet reported fourth-quarter earnings of $15.35 a share, well ahead of analysts' forecasts, but revenue of $46.08 billion, an increase of 17.3% from a year earlier, that came in below estimates of $46.9 billion.

The company also provided details on two of its key business units - YouTube and cloud - for the first time, with both showing solid revenue growth rates that, however, still disappointed investors.

Tesla (TSLA) - Get Report topped $900 for the first time. The stock ended the day up 14% at $887.06. On Monday, the stock posted its biggest single-session advance in six years. The electric vehicle company was closing in on Toyota (TM) - Get Report for the title of world's most valuable carmaker.

Tesla surged nearly 20% on Monday, boosting its market value to just under $141 billion, well ahead of domestic rivals Ford (F) - Get Report and General Motors (GM) - Get Report.

Tesla's move Monday came after earlier-than-expected profitability at Panasonic Corp.  (PCRFY) , which makes batteries for Tesla at a jointly-owned plant in Nevada, and a pair of analyst upgrades that had retail investors pouring into the stock. 

Macy's (M) - Get Report told the Wall Street Journal that it would close 125 stores over the next three years, a move the paper said reflected shoppers' decision to buy online and not to go to the malls. The Cincinnati retailing giant also plans to cut about 2,000, or 10%, of its corporate and support staffers.

BP (BP) - Get Report reported reported fourth-quarter underlying replacement cost profit of $2.57 billion, ahead of analyst' estimates, and the oil giant boosted its dividend by 2.4% despite lower oil and gas prices.

Clorox (CLX) - Get Report reported fiscal second-quarter earnings that beat analysts’ forecasts as it continued to orchestrate a turnaround in its previously suffering household products segment, specifically sales of bags and wraps and charcoal.

Earnings reports are expected after the closing bell Tuesday from Walt Disney (DIS) - Get Report, Ford and Snap (SNAP) - Get Report.

Alphabet, BP, Clorox and Walt Disney are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.