Today’s Market Wrap Up and a Glimpse Into Tuesday

Stocks reversed early gains to finish the day slightly lower, with the Dow Jones Industrial Average shedding almost 100 points and the S&P 500 down too. The tech-heavy Nasdaq managed to buck the negative trend and close the day slightly higher.

Fears of inflation rearing its head in the economy coupled with the rise of the delta variant had investors feeling on edge. In addition, China’s crackdown on tech companies could lead to more market volatility, which is only exacerbating the situation.

Investors have largely been able to focus on corporate America thanks to better than expected quarterly profits. That optimism wasn’t enough to mask the pandemic-related fears in the regular session.

Stock futures were higher across the board on Monday evening despite the economic uncertainty. As the earnings season begins to wind down, there could be fewer catalysts and investors might be in for a wild ride on Wall Street.

Stocks to Watch

A couple of stocks were able to shine through the uncertainty, including payments company Square, which in addition to strong quarterly results announced over the weekend its plans to acquire Afterpay.

• Tesla’s stock was another winner, gaining 3% on the day. Shares have been volatile of late. Since early July, Tesla is up almost 5%.
• Simon Property shares climbed about 3% higher after the company reported its Q2 results. The company’s earnings beat Wall Street estimates, and management raised its full-year 2021 outlook in addition to increasing the quarterly dividend. The results are an indication that shopping malls are benefiting from the reopening of the economy after the pandemic year.
• Take-Two Interactive shares are trading lower in extended hours. The company’s earnings results were in line with estimates, but management’s Q3 forecast did not impress. Take-Two, which makes the Grand Theft Auto video game, revealed that a couple of its “core titles” would be released later than originally expected.

Look Ahead

The earnings parade continues in earnest this week. On Tuesday, the markets will wait to hear from Under Armour, Activision Blizzard and ride-share company Lyft. Investors will be paying attention to Lyft’s results to gauge what could be ahead for Uber Technologies when the company reports its quarterly results on Wednesday.