We are halfway through the week and the stock market is not slowing down! In fact, continued excitement over large-scale infrastructure spending helped to lift equities once again on Wednesday. So besides dreaming about roads and bridges, what did the stock market do today?
- The S&P 500 closed up 0.25%
- The Dow Jones Industrial Average closed up 0.62%
- The Nasdaq Composite closed down 0.16%
So what else did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? Fret About Earnings.
I am going to bet that you have heard this before, but 2020 was an “unprecedented” year. Consumers shifted their behaviors in historic ways, and companies that responded to meet their needs became quick winners. Zoom (NASDAQ:ZM) became synonymous with a work-from-home world. Coinbase (NASDAQ:COIN) and Robinhood (NASDAQ:HOOD) profited from record trading volumes while consumers were bored at home.
Now, a similarly historic and “unprecedented” shift is happening. Although the delta variant is plaguing the United States, many consumers are pressing forward with reopening. Restaurants and stores are crowded, and many individuals are ready to travel again.
Second-quarter earnings season has captured this shift. Pandemic winners are struggling to maintain hypergrowth forecasts for the rest of 2021. Earnings are starting to disappoint. Consumers shifting back to some level of normalcy means that some Covid-19 winners are cooling off.
Today, we saw a perfect examples of this. Wix.com (NASDAQ:WIX) saw shares sink 16% today after lowering its forecast for the rest of the year. As CEO Avishai Abrahami said, Wix customers do not know what is ahead in regards to the pandemic. In practice, this means less customers are creating websites, such as for online stores. Wix lowered revenue guidance for the full year to a range of $1.255 billion to $1.27 billion, down from a range of $1.28 billion to $1.29 billion.
No Seasonal Colds, No Seasonal Spending
One company learned the hard way just how much of an impact social distancing, mask wearing and enhanced personal hygiene practices could have on cold season. That company is Perrigo (NYSE:PRGO), and it saw shares drop more than 12% after reporting earnings on Wednesday.
For those less familiar, Perrigo is a consumer healthcare company that focuses on over-the-counter medications and wellness solutions. Through its various subsidiaries, it provides OTC treatments for digestive and respiratory health, as well as skincare and personal hygiene. Consumers may recognize its brands like Prevacid 24HR, Steripod and Plackers.
In other words, this is a company all about keeping people in the best shape… and helping them recover when they are sick. But what happens when consumers are not struggling with common health problems like colds?
For Perrigo, the answer to that question is a quarterly loss of $112 million and revenue of $981.1 million. Analysts were hoping for revenue of $1.02 billion, but a “weak” cold and flu season hampered sales. Precautionary measures in response to Covid-19 kept consumers from needing treatments for other transmissible illnesses.
So what is the bottom line? When you think about recovery plays, airlines and cruise ships may be top of mind. But companies like Perrigo that help us recover from a long weekend spent partying are also set to benefit from a reopening world.
What Else We’re Watching
- Lucid Motors (NASDAQ:LCID) and other electric vehicle stocks were on watch today, thanks to Democratic lawmakers. A group of 29 lawmakers published a letter asking for $160 million more for EVs — on top of the $3.5 trillion budget resolution. The thinking goes that more funding equals more opportunity for startups like Lucid and Rivian.
- Who let the dogs out? Dogecoin (CCC:DOGE-USD) was zooming higher on Wednesday, gaining more than 10%. Investors should note though that updates that will lower Dogecoin transaction fees have been delayed, according to an update from founder Billy Markus.
- Moderna (NASDAQ:MRNA) was not benefitting from any immunity today. In fact, Bank of America analyst Geoff Meacham sent shares down more than 15% after releasing a bearish note. Meacham takes issue with its valuation, which he says puts it ahead of more established pharmaceutical plays like Merck (NYSE:MRK).
- Fisker (NYSE:FSR), just a day after winning favor from Morgan Stanley, announced it would offer $600 million in green convertible notes. So what makes them green? The electric vehicle startup says it will use the proceeds to finance or refinance some of its green projects. One such initiative includes its PEAR EV project with Foxconn.
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.