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Possibility of a coronavirus rescue program and positive expectations about tech earnings helped benchmarks close higher on Monday. Investors now brace for a momentous tech earnings week, with reports due from Facebook, Amazon, Alphabet and Apple to name a few.
The Dow Jones Industrial Average (DJI) rose 114.88 points or 0.4%, to close at 26,584.77 and the S&P 500 rose 23.78 points or 0.7% to close at of 3,239.41. The Nasdaq Composite Index closed at 10,536.27, gaining 173.09 points or 1.7%. The fear-gauge CBOE Volatility Index (VIX) decreased 4.3%, to close at 24.74. Advancing issues outnumbered declining ones for 1.48-to-1 ratio on the NYSE and a 1.23-to-1 ratio on the Nasdaq favored advancers.
How Did the Benchmarks Perform?
Of the 11 major sectors of the S&P 500, nine ended in the positive territory, with technology, materials and real estate sectors leading the rally, closing at least 1.1% higher for the session. The healthcare sector got a boost after the U.S. government allocated an additional $472 million towards Moderna, Inc.’s (MRNA - Free Report) coronavirus vaccine research. Moderna’s shares ended 9.2% higher on Jul 27.
Overall, the S&P 500 posted 16 new 52-week highs and no new lows, while the Nasdaq Composite recorded 56 new highs and 26 new lows.
Coronavirus Stimulus Package in Negotiation
Negotiations towards a coronavirus rescue package continue on Monday. The U.S. Senate Republicans are expected to unveil a $1 trillion coronavirus aid proposal which needs to be negotiated with Democrats. The package plays a crucial role as the provision that provides an additional $600 a week in unemployment benefits to more than 32 million unemployed Americans expires at the end of this month.
Mixed Q2 Earnings Report
As of Jul 24, total 128 members of the S&P 500 have reported Q2 earnings, which is down 41.9% from the same period last year on 7.1% lower revenues. Of the 25.6% of the broader index’s total membership, 74.2% has beat EPS estimates and 64.1% beat revenue estimates. (Read More: The Technology Sector Shows its Earnings Power Amid Coronavirus)
On Monday, Hasbro, Inc. (HAS - Free Report) reported second-quarter 2020 earnings of 2 cents per share, missing the Zacks Consensus Estimate of 19 cents. Additionally, Hasbro’s net revenues were $860.3 million, which lagged the Zacks Consensus Estimate of $983 million. The segment’s growth was hurt by coronavirus-induced store closure, product shortages and lower retail inventories. (Read More)
Shares of SAP SE (SAP - Free Report) closed 3.9% higher on Monday after the company reported second-quarter 2020 earnings of $1.29 per share, surpassing the Zacks Consensus Estimate by 0.8%. The company reported total revenues of $7.42 billion which surpassed the Zacks Consensus Estimate at $7.296 billion. Cloud revenues — related to Software as a Service (SaaS)/Platform as a Service (PaaS) surged 17%. (Read More)
On the same day, Legg Mason, Inc. reported first-quarter fiscal 2021 earnings of 71 cents per share, in line with the Zacks Consensus Estimate. The company reported net income of $49.4 million compared with the net income of $45.4 million recorded in the year-ago period. Results were supported by decline in expenses, however, lower revenues resulting from a fall in investment advisory fees impacted the company’s performance. (Read More)
F5 Networks Inc. (FFIV) reported third-quarter fiscal 2020 non-GAAP earnings per share of $2.18, beating the Zacks Consensus Estimate of $2.05. Moreover, the company’s quarterly earnings came in significantly higher than its guidance of $1.91-$2.13 per share. (Read More)
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Shutterstock
Stock Market News for Jul 28, 2020
Possibility of a coronavirus rescue program and positive expectations about tech earnings helped benchmarks close higher on Monday. Investors now brace for a momentous tech earnings week, with reports due from Facebook, Amazon, Alphabet and Apple to name a few.
The Dow Jones Industrial Average (DJI) rose 114.88 points or 0.4%, to close at 26,584.77 and the S&P 500 rose 23.78 points or 0.7% to close at of 3,239.41. The Nasdaq Composite Index closed at 10,536.27, gaining 173.09 points or 1.7%. The fear-gauge CBOE Volatility Index (VIX) decreased 4.3%, to close at 24.74. Advancing issues outnumbered declining ones for 1.48-to-1 ratio on the NYSE and a 1.23-to-1 ratio on the Nasdaq favored advancers.
How Did the Benchmarks Perform?
Of the 11 major sectors of the S&P 500, nine ended in the positive territory, with technology, materials and real estate sectors leading the rally, closing at least 1.1% higher for the session. The healthcare sector got a boost after the U.S. government allocated an additional $472 million towards Moderna, Inc.’s (MRNA - Free Report) coronavirus vaccine research. Moderna’s shares ended 9.2% higher on Jul 27.
Overall, the S&P 500 posted 16 new 52-week highs and no new lows, while the Nasdaq Composite recorded 56 new highs and 26 new lows.
Coronavirus Stimulus Package in Negotiation
Negotiations towards a coronavirus rescue package continue on Monday. The U.S. Senate Republicans are expected to unveil a $1 trillion coronavirus aid proposal which needs to be negotiated with Democrats. The package plays a crucial role as the provision that provides an additional $600 a week in unemployment benefits to more than 32 million unemployed Americans expires at the end of this month.
Mixed Q2 Earnings Report
As of Jul 24, total 128 members of the S&P 500 have reported Q2 earnings, which is down 41.9% from the same period last year on 7.1% lower revenues. Of the 25.6% of the broader index’s total membership, 74.2% has beat EPS estimates and 64.1% beat revenue estimates. (Read More: The Technology Sector Shows its Earnings Power Amid Coronavirus)
On Monday, Hasbro, Inc. (HAS - Free Report) reported second-quarter 2020 earnings of 2 cents per share, missing the Zacks Consensus Estimate of 19 cents. Additionally, Hasbro’s net revenues were $860.3 million, which lagged the Zacks Consensus Estimate of $983 million. The segment’s growth was hurt by coronavirus-induced store closure, product shortages and lower retail inventories. (Read More)
Shares of Hasbro that carries a Zacks Rank #3 (Hold) ended 7.4% lower on Jul 27. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of SAP SE (SAP - Free Report) closed 3.9% higher on Monday after the company reported second-quarter 2020 earnings of $1.29 per share, surpassing the Zacks Consensus Estimate by 0.8%. The company reported total revenues of $7.42 billion which surpassed the Zacks Consensus Estimate at $7.296 billion. Cloud revenues — related to Software as a Service (SaaS)/Platform as a Service (PaaS) surged 17%. (Read More)
On the same day, Legg Mason, Inc. reported first-quarter fiscal 2021 earnings of 71 cents per share, in line with the Zacks Consensus Estimate. The company reported net income of $49.4 million compared with the net income of $45.4 million recorded in the year-ago period. Results were supported by decline in expenses, however, lower revenues resulting from a fall in investment advisory fees impacted the company’s performance. (Read More)
Stocks that Made Headline
F5 Networks Q3 Earnings Beat, Q4 Outlook Encouraging
F5 Networks Inc. (FFIV) reported third-quarter fiscal 2020 non-GAAP earnings per share of $2.18, beating the Zacks Consensus Estimate of $2.05. Moreover, the company’s quarterly earnings came in significantly higher than its guidance of $1.91-$2.13 per share. (Read More)
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>