Today’s Market Wrap Up and a Glimpse Into Wednesday
Retail sales for the month of July fell 1.1% vs. June’s results, which is an indication that consumers are playing it cautious due to the spread of the delta variant. Shares of Home Depot weighed on the Dow on the heels of weaker than expected same-store sales.
In addition, the heightened geopolitical unrest as civilians and allies attempt to escape Kabul has added to the uncertain environment.
Stock index futures extended their declines on Tuesday evening in after-hours trading. The Dow, S&P and Nasdaq futures were all down modestly.
Stocks to Watch
- AMC Entertainment gained 4% on the day. Retail investors are watching as the stock inches closer to the USD 40 level once again, which it last touched on in late July.
- Shares of Tencent Music Entertainment Group, which is the streaming business of China-based tech company Tencent, plummeted 12% on Tuesday. The company reported better-than-expected profits but failed to meet revenue estimates. China is in the midst of a regulatory crackdown on technology stocks.
- Walmart’s stock was up fractionally on the day after the U.S. retailer’s Q2 results beat Wall Street estimates. The retailer has been selling more grocery items and is also seeing more consumers return for back-to-school shopping.
- Popular video game platform Roblox saw its shares tumble, but the stock ended off of its worst levels of the session. Roblox’s Q2 bookings, which are an indication of sales, were not as strong as Wall Street analysts were looking for. Now that the lockdowns are over, kids are not spending as many hours playing video games as a year ago.
- Shares of cannabis stock Tilray are rising in after-hours trading. The Canada-based company revealed it has struck a deal with U.S.-based MedMen to acquire a majority stake in the cannabis retailer’s senior secured convertible notes. Tilray stands to benefit more if marijuana is legalized by the U.S. government.
The retail earnings parade will continue on Wednesday, with companies such as Lowe’s, Target and TJX on tap to report their quarterly results. If Home Depot’s performance was any indication, Lowe’s stock could be in for a bumpy ride.