Stock Market Today Mid-Morning Updates
On Tuesday, the Dow Jones Industrial Average surged 400 points as global markets recovered from Monday’s steep losses. Investors also weighed in on the news of the White House stepping in to help fight the Omicron variant with the deployment of military personnel to hospitals.
Furthermore, all three major U.S. stock market indexes were in the green at the start of trading. This could reflect a rebound from declines in the previous session ignited by renewed fears that swelling Omicron case numbers could worsen inflationary pressures and also hinder economic recovery.
“We’re seeing broad-based sell-off in risk assets, but ultimately if we think about the longer arc of time, I’m not sure these are going to meaningfully change our outlook for 2022 in terms of investing,” Meera Pandit, a global market strategist at JPMorgan Asset Management told Yahoo Finance Live.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are up 1% Tuesday in the stock market today. Both stocks are looking to reverse three-day declines. Home Depot (NYSE: HD) rose to extend a rebound from support.
EV companies like Rivian (NASDAQ: RIVN) were up by around 4% while Lucid Group (NASDAQ: LCID) gained around 2%. Shares of EV leader Tesla (NASDAQ: TSLA) were also up nearly 2% Tuesday morning. Also, Chinese EV leaders like Li Auto (NASDAQ: LI) and Xpeng Motors (NYSE: XPEV) posted solid gains of over 4% and 7% respectively.
Dow Jones Today: Markets Steady As Investors Buy Into Post Omicron Sell-Off Momentum
Following the stock market open on Tuesday, the Dow, S&P 500, and Nasdaq Composite are trading higher by 0.80%, 0.39%, and 0.03%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) rallied 1.2% Tuesday, while the SPDR S&P 500 ETF (NYSEARCA:SPY) rose 1%.
In the larger scheme of things, the Omicron Covid variant continues to pressure the current growth in stocks. This seems to be the case with rising global restrictions and cancellations amidst government efforts to stop the spread of the virus. Additionally, the Federal Reserve is looking to accelerate the pullback of its pandemic-era easy-money policies. In other words, this would see a reduction in its share purchase program and boosted estimates for interest rate hikes in 2022.
Not to mention, there is also the matter of Senator Joe Manchin (D., W. Va.) directly hitting President Biden’s social policy bill. Namely, Manchin declared that he would not be supporting Biden’s Build Back Better Act in an interview with Fox News over the weekend. The governor notes that concerns over inflation, current pandemic conditions, and national debt are key factors influencing this decision.
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Nike Soars As Strong North America Sales Figures Bolster Quarterly Earnings
Nike (NYSE: NKE) seems to be the main among the key names to know in the stock market today. After yesterday’s closing bell, the sports apparel retail juggernaut topped analyst estimates across the board. In essence, Nike reported an earnings per share of $0.83 on revenue of $11.36 billion. To compare, Wall Street’s estimates were $0.63 and $11.25 billion respectively. Impressively, the firm is raking in these figures despite ongoing supply chain pressures. As a result, NKE stock is currently looking at gains of 5.68% as of 10:36 a.m. ET.
Commenting on all this is CEO John Donahoe. For the most part, Donahoe notes that Nike is in a “much stronger competitive position” than it was pre-pandemic. Accordingly, the company cites growing sales in the North American market, its biggest market, as a key growth driver for the quarter. Additionally, CFO Matt Friend highlights that Nike’s Vietnamese factories are back to about 80% of pre-closure levels. Given the company’s current momentum, investor hype around NKE stock is not unwarranted.
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Micron Stock Jumps After Earnings Beat
Another firm to consider in the stock market today is Micron (NASDAQ: MU). The memory chip tech company posted an earnings per share of $2.16 on revenue of $7.69 billion. Respectively, this marks solid year-over-year gains of over 176% and 33%. Accordingly, MU stock is now up by 8.71% as of 10:43 a.m. ET.
By and large, CEO Sanjay Mehrotra cites Micron’s “strong product portfolio momentum” as a key growth driver. He also adds that Micron continues to ship its industry-leading DRAM and NAND tech across major end markets. This includes the 5G, artificial intelligence, and electric vehicle fields. According to Mehrotra, these sectors are riding “powerful secular trends”, further establishing growth opportunities for Micron moving forward. As such, MU stock’s gains in the stock market today are understandable.
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