The stock market rebounded after yesterday’s devastating session, and meme stocks found new life. Meanwhile, initial public offerings (IPOs) stay a hot topic as Robinhood looks to become public very soon. So what did the stock market do today?
- The S&P 500 closed up 1.52%
- The Dow Jones Industrial Average closed up 1.62%
- The Nasdaq Composite closed up 1.57%
So what else did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? It Finally Heard Details of the Robinhood IPO.
E-trading platform Robinhood is set to be one of the hottest IPOs in a year full of them. The company, often mired in controversy, yet admired for expertly guiding amateur investors through the stock-picking process, is going public as early as in the next couple of weeks. July 29 is the date set for the IPO, according to CNN. Obviously, that date is not set in stone, but this is the first set date investors have had to look forward too since the company began flirting with the idea of coming public.
There are a few things we can say for certain about this assuredly popular public offering. For example, we know Robinhood filed its S-1 with the Securities and Exchange Commission (SEC) on July 1, thereby formally initiating the IPO process. We also know the company will be coming to the Nasdaq Exchange upon approval from the SEC, and that its ticker symbol is going to be ‘HOOD.’
Today saw detailing about the coming Robinhood IPO Roadshow as well. This weekend, on July 24, those looking to invest in Robinhood will be able to learn further detailing about the company’s public offering. The Roadshow, streamed live and hosted by CEO Vlad Tenev, will be a one-time-only event; there will be no recordings available online afterward. This makes it a crucial event for potential stockholders. You certainly won’t want to miss out.
The company is seeking out an ambitious $35 billion valuation from the coming public offering. That might seem like a lofty goal, considering its valuation in September of 2020 was just $11.7 billion, but the platform’s extreme popularity in the wake of the GameStop (NYSE:GME) and AMC (NYSE:AMC) trading madness is not to be understated.
Market Rebounds After Rough Last Day
The stock market has had some terrible trading sessions over the last few weeks. None, however, were as bad as yesterday’s session. A combination of factors damaged the market, ranging from delta variant fears, inflation worries, OPEC’s deal to ramp up oil production and sinking yield bonds. The major indices showed some serious shakiness; the Dow Jones Industrial Average represented the worst of the dip, losing over 700 points on the day.
Today, though, things are taking a turn for the better. As I mentioned yesterday, the unfavorable market conditions may look like the end of the world to a doomsayer, but for savvy investors, it was simply a fire sale. As such, many bought the dip, and they are reaping the rewards today. Oil prices are beginning to recover quickly from Monday’s sour grapes, and yields are rising once again.
The indices have made a healthy recovery, and most have largely erased the losses of yesterday. The Dow is up 550 points after yesterday’s 700-point tanking, and the Nasdaq and S&P 500 are each up over 1.5%.
Sebastian Galy of Nordea Investment explains the quick turnaround:
“The concerns are cyclical. They are about the spread of the Delta variant, peak momentum, lower oil (higher U.S. inventories), peak earnings growth and the realization that high inflation is starting to impact consumption…”
We’re in a volatile state economically, as stocks seem to ebb and flow according to just how scared investors are in a given day. One must remember that whenever there is a down day, a bullish tear for the market could be just around the corner.
What Else We’re Watching
- A new service called Swimply is being described as “Airbnb (NASDAQ:ABNB) for pools.” Users can book time at private pools to beat the summer heat. Hosts reportedly earn between $5,000 and $10,000 a month. Now that’s passive income.
- AMC stock was buoyed nearly 25% today after signing long-term leases for two of Los Angeles’ highest grossing cinemas.
- Similarly in the realm of meme stocks, investors have been buying up Naked Brands (NASDAQ:NAKD) stock left and right in response to Jim Cramer’s bearish comments on Mad Money. The stock is up nearly 19% on the day.
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.