For just an afternoon, it seems Wall Street has forgotten about the Delta variant of Covid-19. Although mask, vaccine and virus concerns remain just around the corner, a Senate victory for the $1.2 trillion infrastructure bill has stocks rallying. In fact, the Dow Jones Industrial Average closed out Tuesday at a record high in the wake of the news. So, beyond prepping to pour some concrete, what did the stock market do today?
- The S&P 500 closed up by 0.1%
- The Dow Jones Industrial Average closed up by 0.46%
- The Nasdaq Composite closed down by 0.49%
So what else did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? Pop Popcorn.
AMC Entertainment (NYSE:AMC) wowed its retail investor fans yesterday when it shared a narrower-than-expected loss and estimate-beating revenue. It seems that, although Delta variant fears are lingering, the movie theater chain has survived Covid-19 and is eager to thrive in a new world.
Perhaps more importantly, AMC also took some big steps during its shareholder call to tell the Apes just how special they really are to the company. Ahead of time, CEO Adam Aron announced that AMC would solicit questions from individual investors for the first time ever. To do so, AMC worked with Say Technologies, and solicited questions around its dividend and potential future partnerships. Aron also directly talked about retail investors — and his Twitter followers — on the call.
But the biggest news came in two key announcements that marry AMC with topics retail investors love. The first is that Aron said the movie theater chain is working on a partnership with GameStop (NYSE:GME), such as for in-theater gaming events. What better way to appeal to r/WallStreetBets than to tie-up two of their favorite stocks? The second announcement is that by the end of the year, AMC will have the tech needed to accept Bitcoin (CCC:BTC-USD) as a form of payment. With cryptocurrencies once again picking up steam, it seems this is news investors will really like.
However, not everything is smooth sailing for AMC. Today, famous short-seller Jim Chanos announced he had a small short position in AMC stock. He also said that despite the hype, its fundamentals left him wanting more.
All Things Electric
One side effect of senators passing the $1.2 trillion infrastructure plan is that electric vehicle makers are in focus. Ford (NYSE:F), General Motors (NYSE:GM) and Stellantis (NYSE:STLA) have all been making steady progress on their EV goals — and they are in cahoots with the White House. However, there are a handful of EV-first car companies hoping to cash in on historic spending. That list includes Tesla (NASDAQ:TSLA), as well as startups like Fisker (NYSE:FSR) and Lucid Motors (NASDAQ:LCID).
Right now, it is not entirely clear how the cookie will crumble… or who will take leading market share. But that is not stopping automakers from gaining on the back of good infrastructure news.
We saw that at play in the stock market today, but there were a few other noteworthy catalysts. Fisker saw itself rallying on a glowing review from Morgan Stanley analyst Adam Jonas. In his latest report, Jonas said that Fisker may be one of the only startups to launch on time in 2022. He also likes that Fisker is choosing to split up responsibility with companies like Magna International (NYSE:MGA), its manufacturing partner. (Read more about the Fisker note here).
Another noteworthy catalyst came from none other than Warren Buffett himself. It turns out the Oracle of Omaha also wants to electrify his fleet… his Forest River just struck a deal with Lightning eMotors (NYSE:ZEV). The new deal will see Lightning eMotors supply electric drivetrains for thousands of shuttle buses.
Just like with crypto, it seems investors are getting back on board all things electric. Companies like Fisker, Lucid and Lightning are working to take advantage of that.
What Else We’re Watching
- Senators voted to pass the $1.2 trillion infrastructure package today, paving the way for unprecedented spending. However, investors should note they failed to pass a key crypto compromise. As a result, and without further clarification, validators like miners and stakers will be considered “brokers” for tax purposes. Bitcoin (CCC:BTC-USD) appears relatively unfazed by this news, down just 1.5% over the last 24 hours.
- So what comes next? The infrastructure bill will make its way to the House of Representatives where it may face greater contention. But at the same time, investors will have a big reason to keep watching the Senate. There, lawmakers will be voting on a $3.5 trillion budget plan that could usher in spending on childcare, education and climate initiatives.
- Investors are also closely watching the cannabis space. Leafly, a popular online cannabis marketplace, just announced it will come public through Merida Merger (NASDAQ:MCMJ). The SPAC deal will leave Leafly with proceeds of more than $160 million.
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 InvestorPlace.com Publishing Guidelines.
Sarah Smith is the Editor of Today’s Market with InvestorPlace.com.