Dow Jones Futures: Pelosi Makes Key Infrastructure Decision; Tesla,

Dow Jones futures were little changed Monday night, along with S&P 500 futures and Nasdaq futures. House Speaker Nancy Pelosi told her Democratic caucus late Monday that she is no longer linking the bipartisan $1 trillion infrastructure bill to passage of a much-larger reconciliation package. That also comes as Senate Republicans blocked a bill to raise the debt limit and extend government financing.

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The stock market rally had a mixed Monday, with the Dow Jones and small-cap Russell 2000 rallying while the S&P 500 and Nasdaq composite retreated.

Tesla stock extended Friday’s breakout and hit yet another key level on Monday. That comes as Tesla (TSLA) plans to open FSD Beta to tens of thousands of Full Self-Driving owners or subscribers starting as soon as Oct. 1.

Advanced Micro Devices (AMD) rebounded bullishly from its 50-day and a trendline, both offering early buy signals.

Energy stocks powered higher on strong gains for crude oil prices and surging natural gas futures. Whiting Petroleum (WLL) and Targa Resources (TRGP) broke out of bases.

MGM Resorts (MGM) moved higher in a buy range while Hilton Worldwide (HLT) broke out. Travel stocks did well overall, with Covid cases continuing to trend lower. Airline stocks and cruise lines are rebounding after sliding for months.

Finally, rising Treasury yields continued to buoy financials. JPMorgan Chase (JPM) broke out of a cup-with-handle base on Monday.

Tesla stock and AMD are on IBD Leaderboard. AMD stock also is on SwingTrader and was Monday’s IBD Stock Of The Day.

The video embedded in this article reviews Monday’s market action and analyzes TRGP stock, AMD and PerkinElmer (PKI).

Pelosi Infrastructure Bill Decision

Speaker Pelosi, after months of trying to link the $1 trillion infrastructure bill to a much-larger, partisan spending, said she is no longer pursuing that plan. That’s a victory for centrist Democrats, who believe the bipartisan infrastructure package, with some $550 billion in extra funding, was being held hostage. With a 3-seat Democratic majority in the House, Pelosi has little room to maneuver. It’s unclear if left-wing Democrats will vote for the infrastructure deal, which will likely get only a handful of GOP House votes, without some sort of assurances on the reconciliation package. Pelosi has recently signaled the reconciliation bill will be smaller than the long-targeted $3.5 trillion, with Sen. Joe Manchin, D-W.V., pushing for $1 trillion to $1.5 trillion.

The infrastructure bill vote is currently set for Thursday. If the bill doesn’t pass, then existing highway spending authorization runs out as well.

Meanwhile, Senate Republicans rejected a measure to avoid a partial government shutdown after Sept. 30. Republicans object to raising the debt limit as well, saying Democrats should do it themselves.

Dow Jones Futures Today

Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures were flat and Nasdaq 100 futures fell 0.1%.

Remember that overnight action in