The Dow Jones Industrial Average closed at 35,116.40 on Tuesday with a gain of 278.24 points or 0.80%. The S&P 500 closed at 4,423.15 for a gain of 35.99 points or 0.82%. The Nasdaq Composite closed at 14,761.29 for a gain of 80.23 points or 0.55%. The VIX Volatility Index was lower at 17.76 for a loss of 1.70 points or -8.74%.
Tuesday’s Market Movers
The major U.S. indexes ended with gains Tuesday. The S&P 500 closed at a new record high, led by energy and industrials. Stocks rebounded from worries over increased Covid restrictions and the spreading of the new Delta variant, which has caused selling pressure over the last few days.
Investors were watching earnings reports, with approximately 25% of S&P 500 companies reporting this week. FactSet data through Friday has shown 88% of S&P 500 earnings reports with a positive surprise. On Tuesday’s calendar:
- DuPont (DD, Financial): Revenue of $4.14 billion increased 25.8% year over year and beat estimates by $150 million. Q2 GAAP EPS of $1.04 beat estimates by $0.26 and non-GAAP EPS of $1.06 beat estimates by $0.11.
- Eli Lilly (LLY, Financial): Revenue of $6.74 billion increased 22.5% year over year and beat estimates by $150 million. Q2 GAAP EPS of $1.53 missed estimates by $0.13 and non-GAAP EPS of $1.87 missed estimates by $0.02.
- Alibaba (BABA, Financial): Revenue of 205.74 billion Renminbi ($31.80 billion) increased 33.8% year over year and missed estimates by RMB2.93 billion. Q1 GAAP EPS was RMB16.38. Non-GAAP EPS of RMB16.60 beat estimates by RMB2.31.
In other news:
- The $1 trillion infrastructure bill still appears on track for a possible passing in the U.S. Senate this week.
- U.S. average daily Coronavirus cases are up to 80,000, topping numbers from last summer. Cases are rising despite the news that approximately 70% of Americans have been vaccinated.
- Factory orders increased 1.5% in June following an increase of 2.3%. Factory orders excluding transportation increased 1.4% following an increase of 1%.
- The Treasury held auctions for 42-day bills at a rate of 0.04%.
Across the board:
- Pepsi (PEP, Financial) gained 0.22% after announcing the sale of several juice brands.
- Towerstream Corporation (TWER, Financial) +51.42%
- Exela Technologies (XELA, Financial) +13.38%
- Moderna (MRNA, Financial) +11.51%
- iShares Biotechnology ETF (IBB, Financial) +2.14%
- iShares Global Clean Energy ETF (ICLN, Financial) +1.94%
- Energy Select Sector SPDR Fund (XLE, Financial) +1.71%
- The 10-year Treasury ended with a yield of +1.174%
In small-caps, the Russell 2000 closed at 2,223.58 for a gain of 8.08 points or 0.36%. The S&P 600 closed at 1,345.17 for a gain of 10.22 points or 0.77%. The Dow Jones U.S. Small-Cap Growth Index closed at 14,952.74 for a gain of 27.99 points or 0.19%. The Dow Jones U.S. Small-Cap Value Index closed at 11,001.02 for a gain of 90.68 points or 0.83%.
Other Notable Indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 2,708.88 for a gain of 16.87 points or 0.63%; the S&P 100 at 2,024.33 for a gain of 15.62 points or 0.78%; the Nasdaq 100 at 15,061.42 for a gain of 97.80 points or 0.65%; the Russell 3000 at 2,626.23 for a gain of 18.83 points or 0.72%; the Russell 1000 at 2,483.93 for a gain of 18.41 points or 0.75%; the Wilshire 5000 at 45,991.77 for a gain of 331.37 points or 0.73%; and the Dow Jones US Select Dividend Index at 835.03 for a gain of 8.91 points or 1.08%.