S&P 500 closes lower as investors brush off better-than-expected earnings result

Moomoo Recap US wrote a column · Jul 15, 2021 19:14

S&P 500 closes lower as investors brush off better-than-expected earnings result

Hey moomooers, Here is the latest Market Recap for you.
Stocks initially struggled to find direction after a round of mostly upbeat economic data, including a fall in new applications for unemployment benefits to a new pandemic low.
Stocks to watch: $Block(SQ.US)$, $Alcoa(AA.US)$, $Moderna(MRNA.US)$, $American Outdoor Brands(AOUT.US)$, and $Valero Energy(VLO.US)$

Market Snapshot

The $S&P 500 Index(.SPX.US)$ dipped on Thursday even as second-quarter earnings results continued to beat expectations.

The broad index shed 0.33% to close at 4,360.03. The $Nasdaq Composite Index(.IXIC.US)$ fell 0.7% to 14,543.13. The $Dow Jones Industrial Average(.DJI.US)$ bucked the trend and added 53.79 points, or 0.15%, to close at 34,987.02.

Morgan Stanley's second-quarter earnings report topped analysts' expectations Thursday morning, yet its shares closed just 0.18% higher. The bank's stock was up 35% this year going into the results.

What to drove the market?

Stocks initially struggled to find direction after a round of mostly upbeat economic data, including a fall in new applications for unemployment benefits to a new pandemic low.

Initial jobless claims fell by 26,000 to 360,000 in the seven days ended July 10, matching the forecast of economists polled by The Wall Street Journal.

Global economic data was also in focus, with China's economy growing at a still-robust 7.9% over a year earlier in the second quarter.

Powell, in an appearance before the Senate Banking Committee, repeated his message from the previous day when he testified before a House panel, telling lawmakers that inflation has risen significantly and would likely remain high for a few months before moderating.

What stocks to watch

$Block(SQ.US)$ — Shares of Square rose nearly 1% in after-hours trading after CEO Jack Dorsey announced the digital payments company will create an open-source, developer platform focused on bitcoin. Dorsey said the platform will have “the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services.”

$Alcoa(AA.US)$ — The global aluminum producer saw its equity rise 0.9% after reporting better-than-expected second-quarter earnings. Alcoa posted adjusted earnings of $1.49 per share, topping Wall Street's estimate of $1.29 per share, according to FactSet. The company also reported revenue of $2.83 billion versus analysts' $2.65 billion projection.

$Moderna(MRNA.US)$ — The pharmaceutical company’s stock jumped 8% during extended trading after an announcement that it will be added to the S&P 500, replacing $Alexion Pharmaceuticals Inc(ALXN.US)$ . Moderna is joining the index prior to the opening of trade on July 21, according to the S&P Dow Jones Indices. $AstraZeneca(AZN.US)$ is acquiring Alexion, according to the release announcing the index change.

$American Outdoor Brands(AOUT.US)$ — Shares of American Outdoor Brands sunk about 12% after the outdoors equipment supplier reported fiscal fourth-quarter sales below what analysts had expected, according to Factset. Per-share profit topped estimates, however.

$Valero Energy(VLO.US)$ — The energy producer's stock jumped slightly in after-hours trading after the company's board declared a regular quarterly cash dividend of 98 cents a share. Valero, which operates 15 petroleum refineries, has seen its stock climb 18% in 2021 amid pent-up demand for travel and oil.

Source: Dow Jones, CNBC

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