Stock Market Today (8/3/22): Stocks Resume Rally on Strong Earnings, Economic Data – Kiplinger’s Personal Finance

The major market indexes ran higher right from the start on Wednesday – and never looked back. 

Helping boost investor sentiment were a pair of economic reports that indicated the U.S. economy is still growing. Data from the Institute for Supply Management this morning showed business activity in the services sector hit a three-month high of 56.7% in July.

“The ISM services index not only defied the consensus expectation for a decline, but rose by the most in five months in July,” says Wells Fargo senior economist Tim Quinlan. “A jump in new orders bodes well for coming demand, and an array of measures suggests supply chain pressures continue to ease.”

A separate report showed factory orders were up 2% month-over-month in June, more than economists were expecting.

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A heavy dose of well-received corporate earnings reports added to the bullish buzz. Among the day’s big post-earnings winners were drugmaker Moderna (MRNA, +16.0%) and fintechs PayPal Holdings (PYPL, +9.3%) and SoFi Technologies (SOFI, +28.4%).

Technology was the best-performing sector today, surging 2.7%. As such, the tech-heavy Nasdaq Composite outpaced its peers, rising 2.6% to 12,668. Still, the S&P 500 Index (+1.6% at 4,155) and Dow Jones Industrial Average (+1.3% at 32,812) posted solid gains. It was the first win this week for all three indexes.

Other news in the stock market today:

  • The small-cap Russell 2000 spiked 1.4% to 1,908.
  • U.S. crude futures plummeted 4% to finish at $90.66 per barrel after the Energy Information Administration posted a surprise rise in U.S. crude and gasoline inventories. 
  • Gold futures snapped their five-day winning streak, shedding 0.7% to end at $1,776.40 an ounce.
  • Bitcoin rose 2.2% to $23,462.92. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
  • Robinhood Markets (HOOD) jumped 11.7% today after the financial services platform said it was slashing its global workforce by roughly 23%, with most of the layoffs occurring in the operations, marketing and program management divisions. CEO Vlad Tenev said the cuts come amid a “deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash.” The company also reported a slimmer-than-expected per-share loss of 34 cents in its second quarter, while revenue of $318 million came in above the consensus estimate. While the layoffs are the headline of the report, says Mizuho Securities analyst Dan Dolev (Buy), the fundamentals show more positives than negatives – including higher quarter-over-quarter sales and average revenue per user. “We believe that once the market digests the …….

    Source: https://www.kiplinger.com/investing/stocks/605025/stock-market-today-080322-stocks-resume-rally-on-strong-earnings-economic

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