Dow, S&P 500 Rack Up Record Closes During Data-Heavy Week

The passing of a $1 trillion bipartisan infrastructure bill boosted investor sentiment

Digital Content Manager
Aug 13, 2021 at 3:25 PM
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Notable pullbacks and a streak of record closes made for an eventful week on Wall Street. On Monday, the Dow shed triple digits as investors grew wary over the impact rising Covid-19 cases could have on economic growth. They also largely brushed off a record jump in U.S. jobs openings. The passing of a $1 trillion bipartisan infrastructure package in the U.S. Senate came to appease them on Tuesday, with both the Dow and S&P 500 notching record closes. The blue chip benchmark kept surging on Wednesday, notching yet another all-time high alongside the S&P 500, on the heels of cooler-than-expected inflation data. Meanwhile, the tech-heavy Nasdaq chopped lower still, as FAANG names dragged it.

Despite Thursday's muted trading session, both the Dow and S&P 500 scraped together their third-straight record closes, climbing to session highs in the final minutes of trading. This time around, encouraging jobless claims data gave investor sentiment a boost. By Friday, the two major indexes were pacing for their fourth-straight record settlements, with a strong earnings report from Walt Disney (DIS) keeping markets afloat despite a disappointing sentiment report from the University of Michigan. At last check, the Dow and S&P 500 paced for sizeable weekly wins, while the Nasdaq was eyeing a modest loss.

Big Names Step into Earnings Confessional

Though earnings season is on the back nine, plenty of major names stepped into the confessional this week. Among them is Tyson Foods (TSN), which kicked off the week with a beat-and-raise as restaurants reopen. Reddit darling AMC Entertainment (AMC) also beat analysts' expectations amid easing Covid-19 restrictions. The same was not true for Casper Sleep (CSPR), though, which dropped to its lowest level since January after a downbeat second-quarter report. Chesapeake Energy (CHK) had far more positive news, announcing the acquisition of sector peer Vine Energy (VE), in addition to a strong second-quarter earnings report and full-year production forecast.

To follow, Wall Street newbie Bumble (BMBL) fell short of analysts' earnings estimates, despite its quarterly revenue win. Options traders blasted Palantir Technologies (PLTR) after the software concern raised its full-year adjusted free cash flow outlook to more than $300 million. Sonos (SONO) also came to impress, gapping to a three-month high after the company raised its full-year revenue outlook after a third-quarter earnings beat. Another tech name that enjoyed earnings tailwinds is CyberArk Software (CYBR), with is year-over-year revenue growth easily topping Wall Street's estimates. Lastly, Airbnb (ABNB) warned of the threat the Covid-19 delta variant poses, brushing off slimmer-than-expected second-quarter losses.

Tech Movers and Shakers

Several tech companies were busy with earnings this week, though a handful of others made headlines for different reasons. Options bears rushed chip name Western Digital (WDC), for instance, after Morgan Stanley downgraded Micron Technology (MU), citing future weakness in the semiconductor sector. Software concern Zscaler (ZS) flashed a historically bullish signal, on the other hand, indicating it may be poised for more highs. The start of the show was Golden Nugget Online Gaming (GNOG), though, after the company announced an all-stock deal worth $1.56 billion to acquire DraftKings (DKNG). 

August Charges Forward with Retail Earnings, Data

The month of August is charging forward, with a few earnings reports and plenty of economic data for investors to unpack next week. Earnings from BJ's Wholesale (BJ), Cisco (CSCO), Deere (DE), Foot Locker (FL), Home Depot (HD), Kohl's (KSS), Lowe's (LOW), Macy's (M), Robinhood Markets (HOOD), Target (TGT), Tencent Music (TME), and Walmart (WMT) are on tap. Plus, minutes from the Federal Open Market Committee (FOMC) meeting are due out, in addition to retail sales data. Prepare for what is ahead by tuning into the bond market, and find out which sectors to target as a contrarian.

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