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- US equities gain momentum despite a sharp rise in Delta cases across the states
- Futures on Wednesday trade flat, Nasdaq futures up mildly by roughly 0.1%
US Stocks Advance
Stocks on Wall Street moved higher on Tuesday, rebounding from minor losses the previous day. The push to the upside lifted the S&P500 to a new closing high as investors regained their optimism despite a surge in Delta strain cases.
The renewed positive sentiment is supported by a robust earnings season which is fueling hopes the already-strong economic recovery so far in the year will continue. Investors are also betting that the upward momentum will be maintained by the consistent monetary and fiscal stimulus.
As the market mood improved broadly on Tuesday, the Dow Jones Industrial Average added 278.24 points, or 0.80%, to finish the session at 35,116.40. The S&P500 gained 35.99 points, or 0.82%, to a record close of 4,423.15. The Nasdaq Composite edged higher by 80.23 points, or 0.55%, to 14,761.29.
Individual stocks accelerated after corporations released their financial statements for the quarter ended June. Under Armour added $1.59, or 7.5%, to $22.70 after the clothing company reported it delivered a profit in the second quarter. Its net income was boosted by higher-than-expected sales among its golf and running products.
Indeed, the revenue of the company climbed 91% to $1.35bn, beating estimates for $1.21bn. Under Armour raised its outlook for the year and said it anticipated the strong reopening momentum to continue throughout the second half of 2021.
“With the critical mass of our transformation behind us and the continued improvements across product, marketing, and our financial results, I believe this year sets a robust foundation that positions us well for our next chapter of profitable growth,” CEO Patrik Frisk said in the company’s financial report.
Ralph Lauren Beats Expectations
Ralph Lauren also beat analyst expectations for earnings and revenue. The leading apparel and home-products company reported a 182% increase in revenue to $1.4bn, while net income arrived at $172m. Consequently, shares of Ralph Lauren jumped $7.23, or 6.1%, to $125.22 a share.
“Against the backdrop of stronger than expected reopenings across North America and Europe, our teams delivered exceptional performance this quarter,” said Patrice Louvet, President and CEO. “Our timeless brand is resonating strongly with consumers around the world, and the breadth of our lifestyle portfolio is enabling us to deliver products that meet evolving consumer tastes and demand as we progressively emerge from the pandemic,” he added in the earnings statement by the company.
Besides earnings reports coming in above analyst estimates, market participants are hopeful the flurry of positive economic data will continue to buoy the stock market. On the economic updates front, traders and investors will be looking to find out the latest jobs numbers from the July nonfarm payroll report. Scheduled to arrive on Friday, the jobs report will provide a glimpse into the health of the US economy as it would show how many new jobs were created for the month of July.
Meanwhile, rising cases of the Delta strain of Covid-19 are threatening to slow down the economic recovery both in the US and on a global scale. The US reported nearly 150,000 new cases on Tuesday.
Optimism in European Markets
In Europe today, the market kicked off on an optimistic note. Major European bourses hover in the green in the early hours of the trading session. Stocks in Europe today continue their upward swing from earlier in the week as Stoxx 600 Europe floats in record territory.
Bitcoin and cryptos are trading sideways on Wednesday after a couple of weak days that sent Bitcoin lower to levels around $38,000 per coin. Ether is keeping steady today, trading flat around $2,500.
US futures markets on Wednesday hover above and under the flatline with Nasdaq futures positive by about 0.1%.
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