As Tuesday trading wraps up, what did the stock market do today?
To start, the major indices once again ended the day in the red. The S&P 500 shed 0.68%, while the Dow Jones Industrial Average shed 0.75%. The tech-heavy Nasdaq Composite suffered despite the #AppleEvent hype, losing 0.92%.
So what did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? Sell Off.
As Christine Idzelis wrote for MarketWatch today, signs point to stock market sentiment shifting. Following record highs for the major indices and a host of other equities, outflows are starting to increase. Monday and Tuesday trading highlighted this shift, with the S&P 500 shedding 0.68%.
One reason for the decline is a worsening Covid-19 situation. On Tuesday, the World Health Organization reported that new cases are accelerating. Just last week, countries around the world reported a total of 5.2 million new cases, a pandemic high. This comes as vaccine makers like Johnson & Johnson (NYSE:JNJ) and AstraZeneca (NASDAQ:AZN) hit stumbling blocks. Several countries have also reported vaccine shortages and other supply chain demands.
Because of the current Covid-19 situation, we are seeing investor confidence in the reopening rally tremble. Airline stocks fell today following a worse-than-expected earnings report from United Airlines (NASDAQ:UAL). Peers American Airlines (NASDAQ:AAL) and Delta Air Lines (NYSE:DAL) fell in sympathy, as investors processed that airlines are still far from pre-pandemic status. Cruise stocks also suffered, following confirmation that the Centers for Disease Control and Prevention are not rushing to lift the conditional sailing order.
So where do things from here? Bank of America analysts are cautioning that this market weakness could continue in the near term.
Will Dogecoin Disappear If the Crypto Bubble Bursts?
That is the top question that one Wall Street insider was asking today, on what many crypto fanatics dubbed #DogeDay or #DogeDay420. The holiday of sorts for Dogecoin (CCC:DOGE-USD) follows up a meteoric rise to an all-time high, and the cryptocurrency-boosting Coinbase (NASDAQ:COIN) debut. Dogecoin fans were hoping to see #DogeDay take the meme coin to new highs, but at the time of writing, Dogecoin prices were actually down nearly 20% to the 31-cent threshold.
What caused the selloff? As InvestorPlace contributor Chris MacDonald wrote today, there is no clear reason for the decline in Dogecoin prices. However, a few fundamental issues with the crypto like its infinite supply could be shaking bullish sentiment. Factor in reports of crypto regulation and a mining outage in China, and there are a variety of downside catalysts at play.
More interesting than a single-day selloff to investors may be reports that Dogecoin could outright disappear. That opinion comes from Key Advisors Group Managing Partner Eddie Ghabour. Comparing cryptocurrencies to the tech bubble of the 1990s, Ghabour is quick to say that there is long-term value in several top tokens. However, he worries that because of its joke status, a crypto bubble burst would make Dogecoin disappear.
If the latest slide in Dogecoin prices has you eyeing your portfolio, here are some tips on when to sell Dogecoin.
Wait… Maybe the Reopening Rally Continues On
Although airline stocks and cruise stocks stumbled today, Netflix (NASDAQ:NFLX) may be evidence enough that the reopening trade continues on.
On Tuesday, the streaming giant reported first-quarter earnings, and an update on its subscriber growth disappointed investors. In fact, NFLX stock dipped about 1% on the day and is lower by almost 11% in after-hours trading.
Behind the dip is the fact that Netflix added just 4 million subscribers in Q1, missing its own estimate of 6 million new subscribers. These gains also come in significantly lower than the 15.8 million subscribers it added in Q1 2020. Netflix said that there are two reasons for this drop. The first reason, according to the company, is the current state of pandemic recovery. Restrictions have eased in many states and localities, and many consumers are resuming pre-pandemic hobbies. The second reason stems from Covid-19 production delays. With less new content on the Netflix platform, there may be less appeal for potential subscribers.
According to the Wall Street Journal, the dip could be a bigger sign of what is to come after the pandemic. Will the streaming trend stall out as consumers rush into the great outdoors? And what could this possibly mean for beloved brick-and-mortar theater operators like AMC (NYSE:AMC)? Keep this story on your radar.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
