Gamestop Keeps Rising, Dow Up 100 Points As ‘Terrific’ Earnings Boost S&P, Nasdaq To New Highs
Stocks are still tacking on to record highs as earnings continue to show businesses are doing well despite the pandemic’s ongoing toll on the broader economy–and the biggest fourth-quarter earnings reports are just around the corner.
Shortly after the market open, the Dow Jones industrial average climbed 83 points, or 0.3%, while the S&P 500 and tech-heavy Nasdaq–which both closed at record highs Monday–ticked up 0.2% and 0.1%, respectively.
Earnings “remain terrific” despite softening in the last few days, says Vital Knowledge Media Founder Adam Crisafulli, with shares of legacy conglomerate General Electric, up 9%, heading up S&P gains Tuesday after a report that slightly missed on earnings but showed very strong orders and cash flow.
Meanwhile, Johnson & Johnson, which says its coronavirus vaccine candidate results will be released by early next week, reported earnings and revenue that both beat expectations, nabbing $1.7 billion and $22.5 billion, respectively; shares are up 2%.
Others reporting Tuesday morning include Verizon, down 2% after beating earnings expectations but falling short on wireless subscriptions, aircraft company Raytheon Technologies, up 3% after beating estimates across the board, and American Express, which met sales expectations and outperformed on earnings but is still suffering from spending declines.
On the economic data front, U.S. home prices posted one of the biggest year-over-year increases on record in November, according to a new release from S&P Case-Shiller, as red-hot consumer demand continues to be met with a low housing supply across the country.
Global markets are mixed Tuesday, with Japan’s Nikkei 225 ending the day down 1%, while the United Kingdom’s FTSE 100 climbs 0.8% and France’s CAC 40 falls 1.6%.
Gamestop shares climbed 19% Monday after popping as much as 110% in early afternoon trading. They’re up 16% Tuesday morning.
“Stocks are mixed this morning with red across the board in Asia, where wires are citing a China liquidity withdrawal and bubble warnings from a People’s Bank of China advisor, while Europe rallies and U.S. stocks experience mild pressure,” Crisafulli said Tuesday morning. He notes that there’s still plenty of “Gamestop-like nonsense” occurring in the market, pointing to Etsy’s near-10% gain Tuesday morning.
What To Watch For
Nearly one-third of S&P 500 firms are reporting earnings this week, with huge names still to come. Starbucks and Microsoft are among firms reporting after the close Tuesday. AT&T and Boeing report before Wednesday’s open, while Apple, Facebook and Tesla post after the close.
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