Today’s Market Wrap Up and a Glimpse Into Wednesday
Stocks rallied thanks to more good news out of corporate America. The Dow Jones Industrial Average raced ahead more than 270 points or close to 1%, while the S&P 500 achieved a new high and the Nasdaq gained more ground. Investors appear confident that stocks still have more fuel left in the tank for gains this year as quarterly earnings continue to outperform even the most bullish expectations.
In after-hours trading, stock futures are holding their own and trading slightly in the red. Despite a display of caution, there are several stocks that are being celebrated on the heels of solid earnings reports after Monday’s closing bell.
CNBC’s Jim Cramer suggested that investors use caution amid a stock market that is starting to look a little frothy. The stock expert singled out the S&P 500 and Nasdaq, in particular.
In crypto land, the infrastructure bill proposed by lawmakers in Washington, D.C. takes aim at bitcoin, and market leaders are pushing back. According to bitcoin bull Jack Dorsey, the bill “would put unworkable requirements on bitcoin node runners, developers and miners.”
We support @SenToomey and @RonWyden’s effort to amend the provision. The infrastructure bill’s current tax reporting language would put unworkable requirements on #Bitcoin node runners, developers, and miners. This is the way: https://t.co/n3OWAig0ty
— jack (@jack) August 3, 2021
Stocks to Watch
Lyft reported better-than-expected Q2 revenues of USD 765 million, an increase of 125% YoY and a sign that the economic recovery is humming along. The stock, however, is only up fractionally in after-hours trading. Lyft’s Q3 sales outlook may have taken the wind out of the sails of investors amid a trend of lower trip prices. Meanwhile, Uber Technologies is on tap to report its Q2 results on Wednesday.
Shares of sports apparel maker Under Armour climbed 6% higher in the regular session. The company’s quarterly earnings beat Wall Street estimates, and Under Armour lifted its revenue forecast for 2021. Analysts are eating it up, suggesting that Under Armour’s outlook could be on the “conservative” side.
One rare loser on the day was Zymergen, which is a newly public company. Shares of the biology company shaved more than two-thirds off its value on Tuesday amid a management shakeup and disappointing revenue prospects.
If anything besides earnings could sway the markets, it’s the Fed. Richard H. Clarida, vice-chair of the Federal Reserve, is poised to make comments on Wednesday about monetary policy. Investors are also bracing for the employment report for the month of July, which comes out on Friday.