Today’s Market Wrap Up and a Glimpse Into WednesdayTravel-related stocks as well as the financial sector and industrials took back lost ground.
Investors couldn’t stay away from stocks long after yesterday’s meltdown. All three major market indices finished the day in the green with gains of more than 1%. The Dow Jones Industrial Average tacked on nearly 550 points, while the S&P 500 and Nasdaq each gained 1.5% on the day. Travel-related stocks as well as the financial sector and industrials all took back lost ground.
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Investors had fled stocks on Monday on fears of the Delta variant, but cooler heads prevailed today. Apple was among the stocks that redeemed itself after sharp losses on Monday. The tech giant advanced almost 3% on the day. Apple reportedly postponed employees’ return to the offices until the fall due to the spread of the COVID-19 variant.
The oil price similarly found its footing, with Brent crude climbing 1.1% higher on the heels of yesterday’s sell-off of nearly 7%. Investors appeared to have had lumped oil in with their Delta variant-related fears, but it was just a blip on the radar.
Stocks to Watch
Netflix shares were under pressure in extended-hours trading after the streaming giant fell short of subscriber growth expectations. The company added 1.5 million subscribers vs. estimates for 1.75 million, as per Factset. Netflix also missed on the bottom line while beating on the top line.
Netflix blamed the pandemic for its uneven subscriber growth, and management is eyeing 3.5 million new members in Q3, which is weaker than expected. Chief executive Reed Hastings also made it official — Netflix is making a push into gaming.
Restaurant stock Chipotle Mexican Grill had a strong Q2 as customers flocked back to its locations after last year’s lockdowns kept them away. Revenue and earnings beat Wall Street estimates, and Chipotle expects the momentum to continue into Q3, as evidenced by an outlook for same-store sales growth in the double-digit percentage range. Chipotle shares are up 4% in after-hours trading.
AMC Entertainment saw its value balloon by nearly 25% in the session, sending the stock back above USD 40 per share.
Investors will be looking to see if the stock market can extend today’s rally. On the earnings front, Coca-Cola is set to report its quarterly results ahead of the opening bell, as is Johnson & Johnson. Energy company Kinder Morgan’s earnings come out after the closing bell.