After setting record highs on Friday, the major indices cooled off to start the week. It seems the ongoing infrastructure debates in Washington and renewed Covid-19 fears just have everyone on edge. So with that in mind, what did the stock market do today?
- The S&P 500 closed down 0.09%
- The Dow Jones Industrial Average closed down 0.3%
- The Nasdaq Composite closed down 0.16%
So what did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? Compromise.
Congress has been getting a crypto crash course these last few days, as a group of senators tied up the $1 trillion infrastructure deal due to concerns around a crypto tax proposal. More specifically, lawmakers hope to raise $28 billion over the next 10 years through levying new taxes on crypto transactions. However, who actually has to pay those taxes has become quite controversial.
After debating two amendments, a bipartisan group introduced a compromise on Monday. As CoinDesk reported, Sen. Cynthia Lummis and Sen. Pat Toomey shared a compromise exempting certain parties as “brokers.” This is relevant because brokers will be required to report transaction information for tax purposes.
The compromise excludes software developers, node operators and validators from the “broker” definition. Importantly, cryptocurrency miners and stakers are validators.
So what is the bottom line? Right now, this compromise is merely a proposal, and the path forward is unclear. As Bloomberg emphasizes, amending the initial $1 trillion bill will require all 100 senators to get on board. Regardless though, Bitcoin (CCC:BTC-USD) and cryptocurrency stocks like Coinbase (NASDAQ:COIN) and SOS (NYSE:SOS) gained on the day.
There is also one more thing to watch. Alongside the $1 trillion infrastructure bill, Democratic senators introduced a $3.5 trillion budget plan. One component of this would lower the Medicare eligibility age, triggering a rally in Clover Health (NASDAQ:CLOV) today.
Brand-New VSCO Stock Is Ready for the Catwalk
Last week, Victoria’s Secret (NYSE:VSCO) strutted itself out of parent company L Brands and started a new, independent life. Investors should also note that L Brands is now trading as Bath & Body Works (NYSE:BBWI) under the ticker BBWI.
Investors are likely familiar with the fact that the intimates retailer has been struggling. Concerns over its brick-and-mortar sales network hurt during the pandemic, as did concerns over a shrinking customer base. With a growing interest in Lululemon (NASDAQ:LULU) and lingerie startups, the legacy of the Victoria’s Secret Angels became less relatable.
But in a recovering world, Victoria’s Secret is looking for a new life. VSCO stock closed higher on Monday by nearly 20%.
As Jinjoo Lee wrote for the Wall Street Journal, this is the result of a couple of key moves. The company revamped its board, bringing in a majority of women directors. It also overhauled the Angels program, replacing supermodels with activists like Megan Rapinoe and Priyanka Chopra Jonas. This new VS Collective aims to communicate that Victoria’s Secret is embracing inclusion and diversity.
According to Lee, so far these initiatives are working. Victoria’s Secret sold more in the fiscal first quarter of 2021 than it did in 2019. Given its sizeable budget and big brand name, Lee thinks the new-and-improved retailer will be able to once again dominate in the intimates market.
After Monday’s performance, this is a compelling argument. Keep a close eye on VSCO stock.
What Else We’re Watching
- Phillip Morris (NYSE:PM), the tobacco giant, is working to position itself for a world with a lot less smokers. To do so, Phillip Morris is eyeing the pharmaceutical space, after previously embracing the vaping market. The company announced its bid for Vectura, an asthma drug maker, as well as its acquisition of OtiTopic, a respiratory drug development company.
- The Pentagon announced on Monday that all members of the military must get the Covid-19 vaccine by Sept. 15. This comes amid renewed virus fears and a quickly approaching goal for full vaccine approval. Moderna (NASDAQ:MRNA), BioNTech (NASDAQ:BNTX) and Pfizer (NYSE:PFE) all gained on the news.
- Watch out DraftKings (NASDAQ:DKNG), Dave Portnoy is coming. The New York Post reported that Barstool Sports and Major League Baseball are negotiating around broadcasting mid-week games on the Barstool platform. For those unfamiliar, Penn National Gaming (NASDAQ:PENN) has a significant stake in Barstool.
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.