Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stock Market Today: Dow Delivers Swashbuckling Gains as Earnings Shine

Stock Markets Aug 03, 2022 04:12PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com -- The Dow jumped Wednesday, as better-than-expected economic data and mostly positive quarterly results stoked bullish bets on stocks.

The Dow Jones Industrial Average gained 1.3%, or 416 points, the Nasdaq was up 2.6%, and the S&P 500 rose 1.5%.

Consumer stocks were the biggest gainers on the day, led by a surge in retail and travel stocks as investors digested data showing improving U.S. services activity and signs that inflation pressures are dissipating.

The services ISM climbed to 56.7 in July from 55.3 the prior month, topping economists’ forecasts for a reading of 53.5.

Beyond the headline number, the data also showed that the prices paid index fell to 72.3 from 80.1, hitting the lowest level since February 2021, Jefferies said, indicating that “the pace of increases is edging lower.“

Royal Caribbean Cruises (NYSE:RCL), Bath & Body Works (NYSE:BBWI), Ross Stores (NASDAQ:ROST) and Starbucks Corporation (NASDAQ:SBUX) led the move higher in consumer stocks, with the latter jumping more than 4% following quarterly results that topped Wall Street estimates.

Starbucks reported a better-than-expected EPS of $0.84 in the second quarter, as strong growth in the U.S. helped offset the impact of lockdowns in China.

Under Armour (NYSE:UAA) cut its full-year earnings guidance, but reported in-line quarterly earnings, and revenue that topped Wall Street estimates, sending its shares more than 1% higher.

Big tech also played a role in the rally, shrugging off an ongoing climb in U.S. Treasury yields.

Google-parent Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) were up more than 2%, while Facebook (NASDAQ:FB) rose about 5% and Apple (NASDAQ:AAPL) closed nearly 4% higher.

Semiconductor stocks were flat following a 1% dip in Advanced Micro Devices (NASDAQ:AMD) as the chipmaker’s softer guidance offset quarterly results that topped analysts estimates on both the top and bottom lines.

PayPal (NASDAQ:PYPL) was one of the top gainers on the day, rallying more than 9% after reporting better-than-expected results and announcing a $15 billion share buyback program.

The fintech giant also said Elliott Investment Management had invested $2 billion in the company as the activist shareholder looks to encourage PayPal to explore plans to return capital to shareholders.

In healthcare, Moderna (NASDAQ:MRNA) soared nearly 16% after delivering better-than-expected second-quarter results, driven by better-than-expected Covid-19 vaccine sales and revealing plans for a $3 billion stock buyback.

Gilead Sciences (NASDAQ:GILD), meanwhile, also topped Wall Street estimates and forecast a stronger than expected year ahead, sending its shares more than 4% higher.

Energy stocks bucked the broader trend lower as oil prices plunged following an unexpected jump in weekly U.S. crude stockpiles and a decision from major oil producers to lift production by a mere 100,000 barrels per day.  

Stock Market Today: Dow Delivers Swashbuckling Gains as Earnings Shine
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (15)
Kerry Ditto
Kerry Ditto Aug 03, 2022 9:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
market forgot good news is bad news. stagFlation is coming, the worst of the kind
Ola Bode
Ola Bode Aug 03, 2022 9:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
all trade is very active
Mike Sim
Mike Sim Aug 03, 2022 7:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
These articles are literally meant for the causual news reader that thinks the DOW is the “stock market.”
Dave Jones
Dave Jones Aug 03, 2022 7:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Soon the only companies that matter will be a small handful of megacaps. Apple Google Microsoft Amazon. Basically just look at every managed fund to see that.
Stan Smith
Stan Smith Aug 03, 2022 6:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sooo..Doesn't matter if the estimates are in the toilet so long as you meet them.
Jamie An
Jamie An Aug 03, 2022 6:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A true and honest Ala warrior get to wallstreet with bomb jacket. Judge their guilty of manipulate market.
Mike Wellons
Mike Wellons Aug 03, 2022 6:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Keep in mind, last year the GDP froth was 5.7%!. Even a recession of -3% just puts us back into normal territory. That's why Unemployment is still only 3.6%. Companies can continue positive earnings even with a minor corrective recession. This is simply a bull whip effect ... -3.6% GDP 2020, +5.7% GDP 2021, -2%? GDP 2022, +2%? GDP 2023 as the whip stabilizes
JIM VETTER
JIM VETTER Aug 03, 2022 6:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the reason why the unemployment rate is 3.6% is because more people stopped working or looking for a job. The labor participation rate is the lowest its been since the 1970s. That is a more significant number to gauge the labor situation.
G D
G D Aug 03, 2022 6:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And the inflation? QT? Europe situation? The extreme outstanding debt that has to be repaid? Poorer countries defaulting because they can't keep up with everything going on?
Chady Morra
Chady Morra Aug 03, 2022 5:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what a joke, it doesn't matter what the media is saying, the consumer is broke! meanwhile people are being bullish and celebrating rallies just because they think the FED implied to no more raising rates.. get out of your bubble, the problem is not being fixed.. it's being delayed..
David Stocks
David Stocks Aug 03, 2022 5:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
go long week to week the analyst news agencies and major istitutioal investors are working together. I like PLUG doubling in 2 years when PFE comes.out with pan vaccine it will go to the moon
G D
G D Aug 03, 2022 5:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They literally downgraded some big tech estimates HOURS before earnings for the previous week lol. What a joke
Mario tragik
Mario tragik Aug 03, 2022 5:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hard to miss when they lowered the estimates big time, omg what a joke this is.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email