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Wall Street closes up on infrastructure gains but Tesla weighs

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November 9, 2021

By Stephen Culp

NEW YORK (Reuters) – Wall Street stocks ended slightly higher on Monday, rising early after passage of a U.S. infrastructure spending bill but paring gains late as sliding Tesla shares weighed the indexes down.

Still, the S&P 500 and the Nasdaq extended their run of all-time closing highs to eight straight sessions. The blue-chip Dow notched its second consecutive record closing high.

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“It has become a self-fulfilling prophesy,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

“Why are the indexes going up? Because people are buying,” Nolte added. “Why are they buying? Because the indexes going up.”

Tesla Inc was the heaviest weight on the S&P 500. Its shares fell 4.9% following CEO Elon Musk’s Twitter poll on whether he should sell about 10% of his holdings of stock in the electric automaker company he founded. The poll garnered more than 3.5 million votes, with 57.9% voting “Yes”.

Economically sensitive cyclicals and chips led the charge higher, with the Philadelphia SE Semiconductor index also hitting a record high close.

Industrials and materials got a boost after the U.S. Congress passed President Joe Biden’s $1 trillion infrastructure spending bill on Saturday.

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“Over the weekend we got another trillion dollars thrown at the economy which is already running hot,” Nolte said. “So investors are looking at that as a very good thing for equity markets.”

Caterpillar Inc, Cleveland-Cliffs Inc, Freeport McMoRan and U.S. Steel Corp were among companies riding the wave to solid gains, between 2.7% and 6.5%.

Lawmakers now turn to Biden’s social spending bill, with the House of Representatives expected to vote on the measure next week, according to White House economic adviser Brian Deese.

The Dow Jones Industrial Average rose 104.27 points, or 0.29%, to 36,432.22, the S&P 500 gained 4.17 points, or 0.09%, to 4,701.7 and the Nasdaq Composite added 10.77 points, or 0.07%, to 15,982.36.

Among the 11 major sectors in the S&P 500, materials gained the most at 1.2% while utilities suffered the session’s largest percentage loss.

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The third-quarter reporting season has reached the final stretch, with 445 of the companies in the S&P 500 having reported as of Friday. Of those, 81% have come in above analyst expectations, according to Refinitiv.

Cryptocurrency and blockchain-related stocks, including those of Coinbase Global, Riot Blockchain, Marathon Digital Holdings and MicroStrategy Inc rose between 5% and 18%, as ether scaled new peaks and bitcoin neared a record high.

Shares of cosmetics maker Coty Inc surged 15.1% after the company hiked annual organic sales forecast.

Nextdoor Holdings Inc jumped 17.0% in its volatile debut after the neighborhood network platform was brought public in a deal with Khosla Ventures Acquisition Co II, a special purpose acquisition company (SPAC).

Advancing issues outnumbered declining ones on the NYSE by a 1.37-to-1 ratio; on Nasdaq, a 1.21-to-1 ratio favored advancers.

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The S&P 500 posted 50 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 208 new highs and 54 new lows.

Volume on U.S. exchanges was 11.00 billion shares, compared with the 10.66 billion average over the last 20 trading days.

(Reporting by Stephen Culp; additional reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by David Gregorio)

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Canada’s Shopify records Black Friday sales up 21%

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November 27, 2021

(Reuters) – Canadian e-commerce company Shopify Inc recorded worldwide sales of nearly $2.9 billion on Black Friday, an increase of about 21% in comparison to last year, the company said Saturday.

New York, London and Los Angeles were among the top-selling cities, the company said, while apparel and accessories was the top-selling product category.

Shopify also said it funded 23,000+ tonnes of carbon removal to counteract emissions from the delivery of every order placed on its platform on Black Friday.

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(Reporting by Aakriti Bhalla in Bengaluru; Editing by Nick Zieminski)

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Xiaomi to open car plant in Beijing with annual output of 300,000 vehicles – Beijing govt

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November 27, 2021

SHANGHAI (Reuters) – Chinese smartphone giant Xiaomi Corp will build a plant that can produce 300,000 vehicles annually in Beijing for its electric vehicle unit, authorities in the capital said on Saturday.

The plant will be constructed in two phases and Xiaomi will also built its auto unit’s headquarters, sales and research offices in the Beijing Economic and Technological Development Zone, the government-backed economic development agency Beijing E-Town said on its official WeChat account.

Beijing E-Town said it anticipated the plant reaching mass production in 2024, a goal announced by Xiaomi’s Chief Executive Lei Jun in October.

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In March, Xiaomi said it would commit to investing $10 billion in a new electric car division over 10 years. The company completed the business registration of its EV unit in late August.

The company has been opening thousands of stores to spur domestic sales growth for its smartphone business but eventually intends to use these shops as a channel for its plans to sell electric vehicles.

(Reporting by Brenda Goh; Editing by William Mallard)

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Eni sells Snam 49.9% stake in Algeria gas pipelines for 385 million euros

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November 27, 2021

MILAN (Reuters) -Italian energy group Eni has agreed to sell gas group Snam 49.9% of its stake in strategic pipelines carrying Algerian gas into Italy for 385 million euros ($436 million), the two companies said on Saturday.

The pipelines will be jointly controlled by the two companies, they said in a joint statement.

Italy imports more than 90% of its overall gas needs and Algerian gas currently accounts for around 30% of flows.

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“This transaction allows us to free up new resources to be used on our energy transition path,” Eni Chief Executive Claudio Descalzi said.

Eni is working on spinning off a series of oil and gas operations into new joint ventures to help reduce debt and fund its shift to low-carbon energy.

Snam, which owns a 20% stake in the TAP pipeline that carries Azeri gas into Italy, makes most of its money from managing Italy’s gas transport grid.

It has pledged to spend more on new green business lines such as hydrogen and, like other gas grid operators in Europe, is upgrading its gas network to be hydrogen ready.

“In the future, North Africa could also become a hub for producing solar energy and green hydrogen,” Snam CEO Marco Alvera said.

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The pipeline companies involved in the deal posted net income of around 90 million euros in 2020.

($1 = 0.8836 euros)

(Reporting by Stephen Jewkes, editing by Giselda Vagnoni)

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