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Tue, June 6 at 7:00PM ET

What Did the Stock Market Do Today? 3 Big Stories to Catch Up On.

Investors are working for the weekend it seems, as the third quarter kicked off with a bang. In the first day of the new quarter, the S&P 500 set a new record higher. The initial public offering market just hit a new record of its own, and Baby Doge Coin (CCC:BABYDOGE-USD) went racing. So what else did the stock market do today?

Street sign for Wall Street pictured in front of several American flags representing american stocks

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  • The S&P 500 gained 0.52%
  • The Dow Jones Industrial Average gained 0.38%
  • The Nasdaq Composite gained 0.13%

So what else did the stock market do today? Here are some of the top stories.

What Did the Stock Market Do Today? Talk Robinhood

Finally. After months and months of waiting, Robinhood filed for its initial public offering. Investors are already eagerly diving into the details.

  • The company plans to list its shares on the Nasdaq Exchange under ticker HOOD.
  • It will reserve 20%-35% of its shares for sale to company customers, who are largely retail investors.
  • According to Axios, one reason investors have had to wait so long for this filing is that Robinhood has faced delays from the U.S. Securities and Exchange Commission.
  • These delays are largely the result of a growing cryptocurrency trading business.
  • For the first three months of 2021, Robinhood reported $522 million in revenue.
  • It also reported a $1.44 billion net loss.
  • However, as Axios also clarified, that loss is entirely the result of a fair market adjustment on its convertible note financing.

So what else do you need to know before diving in? The first big takeaway is that Robinhood, a company eager for retail investor support, is doing something highly unusual with its IPO. That is, the decision to reserve as much as 35% of its shares for retail investors stands out. It also could change the game for how other companies decide to navigate the process of coming public.

The second big takeaway is that the regulatory road for Robinhood is not clear. Although a FINRA decision from 2020 trading halts is now in the rear-view mirror, the company faces class-action lawsuits and the entire GameStop (NYSE:GME) saga. Plus, regulators still are not so sure about its cryptocurrency business.

Should You Take a Bite Out of Krispy Kreme?

A yummy initial public offering hit Wall Street today, and investors seemed to like their first bite.

Krispy Kreme (NASDAQ:DNUT), the newly public company in question, saw its shares gain more than 23% on Thursday. This comes after the donut chain priced its IPO at $17, below its initial $21-$24 range. As InvestorPlace contributor Robert Lakin wrote this morning, Krispy Kreme raised about $500 million as a result of this debut.

So what else do you need to know? Importantly, Krispy Kreme is not new to Wall Street… at least not really. The company has previously been publicly traded, although it went private in 2016. Along the way, it filed for Chapter 11 bankruptcy protections and struggled with its finances.

Now, with Krispy Kreme once again public, investors are paying close attention. As Lakin also highlighted, the company faces competition big firms like Starbucks (NASDAQ:SBUX). It also must compete with a growing public interest in health-conscious food and beverages. The Covid-19 pandemic, which saw many consumers turn to comfort foods, is fueling this trend.

But Krispy Kreme looks tasty despite these headwinds. Its revenue jumped 23% to $321.8 million in the last quarter and its losses narrowed. Plus, as a brick-and-mortar retailer, Covid-19 reopening and the return to morning commutes should benefit the company.

Granted, not everyone is convinced. As InvestorPlace contributor Chris MacDonald wrote, some on r/WallStreetBets are betting against DNUT stock. Despite its retail-friendly approach, many Redditors think the company is far from a moonshot. They argue that valuation concerns along with its bittersweet past make the Krispy Kreme IPO a little stale.

You can read more about the case for and against DNUT stock here.

What Else We’re Watching

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Sarah Smith is the Editor of Today’s Market with

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