Stock Futures Dip After Record-Setting Session On Monday
On Tuesday morning, U.S. stock futures edged lower after record-sessions across the broader stock market. After initial drops over geopolitical concerns in Afghanistan, both the S&P 500 and Dow eked out new all-time highs. Today, stock futures indicate that the major indexes could be easing off from their five-day hot streak. Given the current market conditions, investors could be carefully eyeing the market today. Accordingly, this would be thanks to new updates on the retail and manufacturing sectors set for release.
Moving forward, Jon Adams, senior investment strategist at BMO Global Asset Management said, “if you look at a medium-term perspective, we think that we’re pretty constructive on the outlook … Earnings season’s been exceptional, the economy remains strong … We’ll get a lot more clarity in the fall around policy and around the virus. We think that it’s still a time to remain overweight on equities and with a bias toward U.S. equities.“
Overall, some are bullish on the economic recovery, while others are taking the cautious road. Regardless of where you land on this spectrum, there is likely a stock to suit your investment strategy now. As of 6:12 a.m. ET, the S&P 500, Dow, and Nasdaq futures are on the dip, moving 0.44%, 0.54%, and 0.36% lower respectively.
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Sea Limited To Report Earnings Before The Opening Bell
Southeast Asian retail giant Sea Limited (NYSE: SE) will be reporting its second-quarter fiscal today. Precisely, the company is set to do so at 7:30 a.m. ET. Before we go into details, newer investors may need a short introduction to the company. Namely, Sea Limited is a leading global consumer internet company that is based in Singapore. The company operates via a wide array of consumer services. This ranges from its Shopee e-commerce shopping app and Garena gaming divisions to its SeaMoney fintech offerings.
According to Wall Street’s estimates, the company could be looking at a loss per share of $0.53 on revenue of $1.94 billion for the quarter. This would suggest that Sea Limited could continue to narrow its losses while posting a 50% year-over-year increase in revenue. Supporting this, Sea Limited continues to grow its top-line figures. For instance, we could take a look at its previous quarter fiscal to get a clearer picture of this. In it, the company raked in a total revenue of $1.76 billion for the quarter, marking a whopping 146% year-over-year jump.
Particularly, Sea Limited saw year-over-year surges of 117% and 250% in its gaming and e-commerce divisions respectively. Moreover, its mobile wallet service recorded a total payment volume of over $3.4 billion, more than tripling year-over-year. All in all, as pandemic conditions remain mostly unchanged in its core markets, demand for Sea Limited’s offerings could persist. With the recent dip in SE stock earlier this week, some investors could see an opportunity in Sea Limited now.
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Crypto Market On The Rebound This Week
Over the weekend, the total market cap of all cryptocurrencies exceeded the $2 trillion mark. This would be its highest level since May 2021. For the most part, this is thanks to the value of Bitcoin rising above the $48,000 mark at the same time. Fast forward to Tuesday morning and the digital currency is taking a breather at the $45,000 mark. Overall, some would argue that these are positive signs for the crypto trade as investor interest continues to grow. This seems to be the case despite recent regulatory pressures over in China.
Commenting on all this, Jehan Chu, founder of cryptocurrency-focused venture capital and trading firm Kenetic Capital said that these “fundamental regulatory roadblocks” have “clipped the market’s wings for the near term”. However, Chu argues that investors could expect Bitcoin to pull back to “sub- $30,000 levels, resetting the stage for a long steady march” till the $100,000 price point in 2022.
Another factor to consider in the broader crypto trade now would be wider adoption. Notably, retail giant Walmart (NYSE: WMT) is now looking to hire a cryptocurrency tech expert. According to the company’s job post, the expert will be developing its “digital currency strategy and product roadmap”. While Walmart’s end goal remains to be seen, it would further bolster hype around digital currencies now.
America’s Car-Mart Set To Drive Home The Quarter
America’s Car-Mart (NASDAQ: CRMT) is set to report its second-quarter figures after today’s closing bell. Given its status as one of the largest automotive retailers in the U.S., CRMT stock could be on investors’ radars today as well. In detail, the company primarily operates in the used car business. Through Car-Mart, consumers have access to quality used vehicles and related financing services. With the company’s shares up by over 54% year-to-date, strong earnings could maintain investor interest in CRMT stock moving forward.
If anything, consensus estimates seem to be pointing towards another solid quarter for the company. As it stands, analysts are expecting an earnings per share of $3.49 on revenue of $249.8 million from Car-Mart today. All in all, this would mark sizable year-over-year increases of 23% and 32% respectively. Not to mention, U.S. consumers would likely have to scrap their long-distance travel plans amidst the current surge in Delta variant cases. In theory, this could see an uptick in demand for Car-Mart’s wares. Could all of this make CRMT stock an attractive buy in the stock market now?
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Other Earnings To Keep An Eye On Today
With July’s retail sales figures set to drop today, all eyes would be on the retail industry. As some of the biggest names are also set to report their earnings, I could see this being the case. From the likes of Target (NYSE: TGT) and Lowe’s (NYSE: LOW) to Estee Lauder (NYSE: EL) and BJ’s (NYSE: BJ), investors are spoilt for choices. With a majority of earnings exceeding expectations for the quarter so far, it makes sense that investors are watching closely.
Companies reporting earnings before today’s opening bell include Walmart, Home Depot (NYSE: HD), and Eagle Point (NYSE: ECC). Alternatively, if you are looking to get in on earnings action after the closing bell, the likes of La-Z-Boy (NYSE: LZB), Amcor (NYSE: AMCR), and Krispy Kreme (NASDAQ: DNUT) are hosting their second-quarter calls. Evidently, there is plenty to consider as we press onwards through another exciting earnings week.
