Alphabet Adds $168 Billion on Dow Debut as Indexes Shake Off Volatility
Key Points
Alphabet rose 4% on its first day as a Dow component, adding $168 billion in market cap and leading all three major indexes.
Tesla rose 4.5% on reports of deeper SpaceX collaboration, while Applied Materials surged 9.8% on analyst optimism.
The holiday-shortened week brings consumer confidence data, job reports, and more Supreme Court opinions.
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The Nasdaq Composite (NASDAQINDEX: ^IXIC) rose 1.3% by 11:45 a.m. ET on Monday. The tech-heavy index recovered from a mid-morning sell-off that briefly pushed it down to flat. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) gained 0.7% and the Dow Jones Industrial Average (DJINDICES: ^DJI) added 0.4%.
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^IXIC data by YCharts
Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) made its Dow debut in style, rising 4% and adding $168 billion in market cap. IT replaced Verizon (NYSE: VZ), which fell 7% on the same news. Ironically, Alphabet created more market value today than Verizon is worth overall.
At the same time, Comcast (NASDAQ: CMCSA) jumped 7% on spinoff news. The company will separate its NBCUniversal and Sky operations into a new, publicly traded company by mid-2027. However, the media veteran's big move barely generated a ripple on the cap-weighted indexes.
After all, the company has a total market cap of just $89 billion today -- about half of the cap value Alphabet added today.
Amazon counted the receipts
Amazon (NASDAQ: AMZN) gained 4.7% as the company tallied its Prime Day haul. U.S. shoppers spent $26.4 billion from June 23 through June 26, up 9.3% from last year, according to Adobe Analytics. Electronics, toys and appliances flew off virtual shelves at discounts averaging 20% to 24%. The jump made Amazon the second-largest contributor of S&P 500 and Nasdaq Composite points, behind Alphabet.
Tesla (NASDAQ: TSLA) rose 4.5%, adding $66 billion in market cap, on reports of deepening collaboration with Space Exploration Technologies (NASDAQ: SPCX). The electric vehicle maker is expected to release second-quarter delivery data in the coming days, with potentially market-moving consequences.
Image source: Getty Images.
Applied Materials (NASDAQ: AMAT) surged 9.8% after analysts at KeyBanc said nice things about the chip equipment maker's prospects. That's another fairly large point addition to the cap-weighted stock indexes.
Around 10:00 a.m. ET, the Supreme Court issued several rulings, including one that expands presidential power over federal agencies. The judicial shock didn't last long, and the indexes climbed back quickly, but that's the reason behind the big dip you see in Monday morning's chart.
And I can't do these market overviews without mentioning Iran and the Strait of Hormuz. Negotiations are ongoing but the Strait is almost entirely closed to oil shipments. Oil rose 1.3% over the weekend on this continued uncertainty.
A short week with a lot to process
This week is shortened by the July 4 holiday on Friday, so there are four trading days to either extend Monday's gains or erase them.
Based on the morning's volatility, either seems possible. Investors are watching the Iranian talks with simmering military tension, and the Supreme Court will issue more opinions on Tuesday. In other macroeconomic news, Wall Street is awaiting reports on consumer confidence, job creation, and producer price inflation.
So it's a short week in the quiet gap between two earnings seasons, but investors will have a lot to process anyway.
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Anders Bylund has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Applied Materials, and Tesla. The Motley Fool recommends Comcast and Verizon Communications. The Motley Fool has a disclosure policy.
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