The markets advanced during the midday with the Dow soaring 170 points to 20,721. Nasdaq climbed 43 points to 5,884.
Tencent Holdings invested $1.78 billion in Tesla for a 5% stake in the electric car maker. The Chinese investment holding company has already taken stakes in electric vehicle startups Nio based in Shanghai and Future Mobility based in Shenzhen. Tesla will use the infusion of cash to prepare for the launch of its Model 3 later this year.
The Office of the Comptroller of the Currency downgraded the Community Reinvestment Act (CRA) rating of Wells Fargo from Outstanding to Needs to Improve. The CRA Performance Evaluation measures how well a bank meets the needs of low and moderate income communities. Wells Fargo is still recovering from a fake accounts scandal that lead to the firing of 5,300 employees.
Ford Motor will invest $1.2 billion to upgrade three facilities in Michigan. The Michigan Assembly Plant will receive $850 million in upgrades and modifications in order to build the Ford Ranger midsize pickup and the Ford Bronco SUV. $150 million will be spent on the Romeo Engine Plant to make engine components. Ford will spend $200 million to build an advanced data center at its Flat Rock assembly plant.
In the broad market, advancing issues outpaced decliners by a margin of more than 5 to 2 on the NYSE and by 5 to 3 on Nasdaq. The broader S&P 500 index soared 20 points to 2,362. Bitcoin held steady at $1040.
