The Dow Jones Industrial Average closed at 34,511.99 on Tuesday with a gain of 549.95 points or 1.62%. The S&P 500 closed at 4,323.06 for a gain of 64.57 points or 1.52%. The Nasdaq Composite closed at 14,498.88 for a gain of 223.89 points or 1.57%. The VIX Volatility Index was lower at 19.73 for a loss of 2.77 points or -12.31%.
Tuesday’s market movers
U.S. stocks rebounded from a selloff Monday to close higher for the day on Tuesday. Investors have been watching new Covid variants as well as closely monitoring economic data for potential peak growth levels.
For the second quarter, analysts are optimistic on earnings growth, projecting a 70% increase in profits year over year for the S&P 500 companies. However, analysts are also skeptical about earnings growth for the second half of the year.
Tuesday’s top sector gainers included:
- Industrial Select Sector SPDR Fund (XLI, Financial) rose 2.80%.
- KraneShares Electric Vehicles and Future Mobility (KARS, Financial) gained 2.66%.
- Financial Select Sector SPDR Fund (XLF, Financial) was up 2.48%.
- Consumer Discretionary Select Sector SPDR Fund (XLY, Financial) increased 1.85%.
In other news:
- Building permits decreased 5.1% in June following a decrease of 2.9%. Year over year, building permits decreased to a seasonally adjusted annual rate of 1.598 million, down from 1.683 million.
- Housing starts increased 6.3% in June following an increase of 2.1%. Year over year, housing starts increased to a seasonally adjusted annual rate of 1.643 million, up from 1.546 million.
- The Treasury held an auction for 42-day bills at a rate of 0.045%.
- Jeff Bezos launched on Blue Origin’s first passenger spaceflight.
Across the board:
- Neurometrix (NURO, Financial) climbed 207.98%.
- Apple (AAPL, Financial) rose 2.60%.
- Groupon (GRPN, Financial) gained 7.17%.
- Upwork (UPWK, Financial) increased 7.40%.
- GameStop (GME, Financial) was up 10.24%.
- IBM (IBM, Financial) gained 1.49% after yesterday’s after-market earnings release. Revenue of $18.7 billion increased 3.2% year over year and beat estimates by $400 million. Second-quarter GAAP earnings of $1.47 per share missed estimates by 40 cents and non-GAAP earnings of $2.33 beat estimates by 4 cents.
- Travelers (TRV, Financial) was down 0.11% with its earnings report. Earned premiums of $7.62 billion increased 9.5% year over year and beat estimates by $90 million. Second-quarter GAAP earnings of $3.66 beat estimates by $1.29 and non-GAAP earnings of $3.45 beat estimates by $1.07.
- Netflix (NFLX, Financial) was down 0.23% with its earnings report. Revenue of $7.34 billion increased 19.3% year over year and beat estimates by $20 million. Second-quarter GAAP earnings of $2.97 per share missed estimates by 19 cents.
- AMC Entertainment (AMC, Financial) gained 24.47% with news it is reopening two of its top theaters in the Los Angeles areas.
- Bitcoin fell below $30,000.
- S&P 500 Energy Select Sector SPDR Fund (XLE, Financial) gained 1.34% with news that OPEC+ will increase production levels. This includes increased production levels for five controversial countries: Iraq, Kuwait, Russia, Saudi Arabia and the United Arab Emirates. OPEC+ is also reported to be taking steps to return to pre-pandemic production.
- The 10-year Treasury yield ended at 1.222%.
Small-cap stocks
In small caps, the Russell 2000 closed at 2,194.30 for a gain of 63.62 points or 2.99%. The S&P 600 closed at 1,310.38 for a gain of 37.38 points or 2.94%. The Dow Jones U.S. Small-Cap Growth Index closed at 14,744.57 for a gain of 444.20 points or 3.11%. The Dow Jones U.S. Small-Cap Value Index closed at 10,755.83 for a gain of 315.22 points or 3.02%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 2,642.18 for a gain of 71.15 points or 2.77%; the S&P 100 at 1,988.66 for a gain of 25.75 points or 1.31%; the Nasdaq 100 at 14,728.21 for a gain of 179.12 points or 1.23%; the Russell 3000 at 2,570.17 for a gain of 43.60 points or 1.73%; the Russell 1000 at 2,429.52 for a gain of 39.20 points or 1.64%; the Wilshire 5000 at 45,045.23 for a gain of 752.21 points or 1.70%; and the Dow Jones U.S. Select Dividend Index at 816.26 for a gain of 11.86 points or 1.47%.
