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Historic September Markets Pervade; AFRM Jumps 17%

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For the fourth straight trading session, the Dow and the S&P 500 have both closed lower than the previous day. The Dow was down -0.43%, back below 35K for the first time since August 19th; the S&P, -0.46% on the day, has dipped beneath 4500 since August 26th. The Nasdaq, down two days in a row, was -0.25%, while the Russell 2000 just lost its gains at the closing bell, dipping -0.03%.

It’s the same story we’ve seen of late: moves are not grand, they’re relatively minimal. Out of calendar Q2 earnings season and past major economic prints of the last couple weeks, we’re not seeing anything notably pushing or pulling stocks, with the possible exception of downward Q3 guidance based on some supply constraints. Stock sellers are not running for the hills, however — they’re more sipping the froth off the carbonated beverage.

All major indexes had traded in the green at some point during the trading day — in some cases for a good chunk of the regular session. Real Estate was the sector with the biggest downside move, around -2%. But these indexes all closed near session lows, indicating investors are perhaps keeping their powder dry, perhaps somewhat trepidatious of what may be to come. After all, it is September in the markets.

One stock rocketing up +17% after hours is Affirm Holdings (AFRM - Free Report) , which reported fiscal Q4 results this afternoon. The “buy now, pay later” company, which creates installment loans for online shoppers, reported revenues of $261.8 million, a 15% positive surprise from the $227.4 million in the Zacks consensus. Affirm missed expectations on its bottom line, -48 cents per share versus the -27 cent estimate, but for young companies like this, it’s all about growth.

Affirm had enjoyed a massive +47% jump the weekend after August 27th, when the company announced a partnership with Amazon (AMZN - Free Report) , and now has zoomed back north of $100 per share since February of this year, roughly a month after its IPO. Gross Merchandise Volume grew +106% year over year, including +412% growth in Active Merchants in the quarter. Active Customers rose +97% to 7.1 million. Guidance for next quarter and fiscal year were raised.

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