Stock Market Today: Tesla Plans Price Hikes, Pares Store Closures

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Major stock market indexes climbed on Monday despite starting the session in the red on broad concerns of slowing global economic growth. The S&P 500 (SNPINDEX: ^GSPC) rose about 1.5% and the Dow Jones Industrial Average (DJINDICES: ^DJI) delivered a more modest 0.8% gain.

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Tech stocks set the pace, with the Technology Select Sector SPDR Fund (NYSEMKT: XLK) adding 2.2%. Industrial names posted more modest gains, with the Industrial Select Sector SPDR Fund (NYSEMKT: XLI) rising 0.9%.

As for individual stocks, Tesla (NASDAQ: TSLA) enjoyed a good session after announcing price hikes and backtracking on its previous decision to close most of its stores. Meanwhile, Boeing (NYSE: BA) slumped as multiple airlines grounded its planes following a tragic crash yesterday in Ethiopia.

Tesla pumps the brakes on store closures

Shares of Tesla climbed 2.4% after the electric vehicle maker revealed in a Sunday blog post it has "decided to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months."

For perspective, Tesla announced plans last month to wind down the vast majority of its stores as part of a strategic shift toward online-only sales -- a move the company said would enable it to "pass the savings along to our customers."

Given its about-face this weekend, however, Tesla now says it will "need" to increase vehicle prices by roughly 3% on average worldwide.

"In other words, we will only close about half as many stores," the company elaborated, "but the cost savings are therefore only about half."

Tesla was quick to point out its recently launched $35,000 Model 3 sedan will be spared from the price bumps. Instead, the increases will be limited to its Model S, Model X, and more expensive Model 3 versions.

In any case, it seems the market approves of this latest strategic shift.

Boeing stock falls sharply in wake of aircraft tragedy

Shares of Boeing plunged as much as 13.5%, but recouped some of their early losses to close down 5.3% after one of the aircraft specialist's new 737 Max 8 planes crashed near Addis Ababa. There were no survivors among the 157 people on board the Ethiopian Airlines flight.

The crash is the second fatal incident in five months involving Boeing's new single-aisle plane; another 737 Max 8 operated by Lion Air crashed in Indonesia last October, killing all 181 passengers.

On the heels of this weekend's events, countries including Ethiopia, China, and Indonesia have each ordered their respective airlines to ground the planes pending further investigation.

"Safety is our No. 1 priority and we are taking every measure to fully understand all aspects of this incident, working closely with the investigating team and all regulatory authorities involved," Boeing wrote in a statement.

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Steve Symington has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.