Companies went above and beyond on their earnings reports, and Chinese stocks slid as the Chinese Communist Party cracks down. So what did the stock market do today?
- The S&P 500 closed up 1.01%
- The Dow Jones Industrial Average closed up 0.68%
- The Nasdaq Composite closed up 1.04%
So what else did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? Chinese Stocks Tumbled on the U.S. Market.
Today saw lots of trending stocks from China, but unfortunately, they were seeing interest for the wrong reason. A whole host of stocks from the Asian nation were trading in the red today. It appears the Chinese government’s crackdown on monopolization and listing on U.S. markets is finally catching up to stocks.
Fines are being handed out by the Chinese government to companies like Alibaba (NYSE:BABA) to crack down on monopolization. Likewise, the government is halting initial public offerings (IPOs) for companies that the Chinese Communist Party is not seeing eye to eye with, like Jack Ma’s Ant Group.
InvestorPlace’s Chris MacDonald is reporting on Chinese education stocks in particular. This class of assets is lagging today because the Chinese Communist Party is considering forcing for-profit educational tools to become non-profits. This move, like the new three child policy, is meant to spur long-term economic growth. By removing the cost obstacles associated with for-profit tutoring, the country can ensure more children are educated.
Some of the biggest losers from this crackdown are companies like TAL Education (NYSE:TAL), New Oriental Education NYSE:EDU) and Gaotu Techedu (NYSE:GOTU). TAL stock dropped 71%, EDU dropped 58% and GOTU lost 63%.
Earnings Blew Investors Away
Today continues a busy week of earnings, and most companies who are reporting today are nothing short of impressive. Snap Inc. (NYSE:SNAP), the company behind Snapchat, posted some very good numbers. In Q2, they reeled in revenue of over $982 million, a year-over-year increase of 116%. As a result, SNAP stock is seeing a 24% boost for its stock on the day’s session.
Also letting the good times roll is Socket Mobile (NASDAQ:SCKT), who is flexing revenue of nearly $6 million in Q2. That’s a year-over-year increase of 119% for the barcode reader. It also is showing diluted earnings per share of 27 cents, up vastly from last quarter’s losses per share of 13 cents. The report translates to a successful day of trading for SCKT stock, up 44% thanks to the optimistic earnings.
Investors are scrutinizing over earnings seemingly more than ever in the last quarter. With much of the economy coming out of recovery, Q2 is the first quarter of relative normalcy since the coronavirus pandemic set in early last year. These positive earnings are leading to great upticks, but those failing to report satisfying numbers are being punished to a similar degree. For example, Intel (NASDAQ:INTC) reported its earnings today as well. The company actually beat earnings estimates. However, they are forecasting declining profits in the months to come in the report. As a result, the stock is trading down by over 5%.
With Q2 earnings season still in full effect, what do investors have to look forward to next? Well, Tesla (NASDAQ:TSLA) is going to be sharing their earnings on Monday, and the event is highly anticipated. Experts expect revenue to the tune of $11.4 billion coming from the company.
What Else We’re Watching
- Huawei Technologies is hiring Democratic lobbyist Tony Podesta, in an effort to help broaden the company’s reach in the United States.
- A pro-Trump cryptocurrency known as MAGACOIN launched today and was met with an immediate data breach that leaked investors’ email addresses, IP addresses and passwords.
- The MLB’s Cleveland Indians are announcing today that after the 2021 season, the team is changing their name to ‘Cleveland Guardians.’ The switch will be the first name change for the franchise since taking on the current name in 1915.
On the date of publication, Brenden Rearick 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 InvestorPlace.com Publishing Guidelines.