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Stock Market Today: Dow Jones, S&P 500 Rebounds After Lowest Closing Since March 2021; Upstart Tumbles After Cutting Outlook

Markets opened higher today after breaking a three-session losing streak.

Stock Market Today Mid-Morning Updates

On Tuesday, the Dow Jones Industrial Average is up by 350 points after retreating for the last 3 sessions. All major indexes were green today despite continued fears of rising inflation. Also, rising interest rates continue to weigh in on investors. Vladimir Putin has reportedly lost his 40th colonel. Earlier, President Joe Biden said he is concerned that Putin no longer has an exit strategy from his war in Ukraine after the Russian president led Victory Day celebrations in Moscow.

Biohaven Pharmaceutical (NYSE: BHVN) is up by over 70% today after the company agreed to be acquired by Pfizer (NYSE: PFE). The deal will be worth approximately $11.6 billion and Biohaven shareholders will receive $148.50 per share in cash. Shares of Novavax (NASDAQ: NVAX) are down by over 12% today after the company missed both top and bottom-line estimates in its latest quarter. The miss comes as Novavax shipped just 31 million coronavirus vaccine doses during the quarter, well off its projected 2 billion shots for 2022.

Among the Dow Jones leaders, shares of Apple are up by 2.81% today while Microsoft (NASDAQ: MSFT) is also up by 3.27%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading higher on Tuesday. Among the Dow financial leaders, Visa (NYSE: V) is up by 0.81% while JPMorgan Chase (NYSE: JPM) is also up by 0.08%.

Shares of EV leader Tesla (NASDAQ: TSLA) are up by 2.95% on Tuesday. Rival EV companies like Rivian (NASDAQ: RIVN) are also up by 2.94%. Lucid Group (NASDAQ: LCID) is also up by 2.48% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading higher today. 

Dow Jones Today: U.S. Treasury Yields and Oil Prices Drop

Following the stock market opening on Tuesday, the S&P 500, Dow, and Nasdaq are trading higher at 1.41%, 0.96%, and 2.12%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is up by 2.30% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also up by 1.40%. 

The benchmark 10-year U.S. Treasury yield dropped below 3% today after rising over the last week to new pandemic-era highs as bond traders bet that the Federal Reserve will not be able to get inflation under control. Investors will also be able to look forward to two key inflation reports that will be out on Wednesday and Thursday. Joe Biden will also deliver remarks on inflation today.

Bitcoin Sees Slight Rebound After Sliding Below $30,000; El Salvador Doubles Down On Bitcoin Investments

Bitcoin (BTC) is in the news more today thanks to more bouts of volatility. Notably, this is likely the result of the cryptocurrency diving under the $30,000 per coin mark late on Monday. While moves such as this are common for Bitcoin, it would mark an alarming point for crypto traders. This would be the case seeing as it is the leading crypto component in the digital currency space today. By dipping past the $30,000 point, Bitcoin was at lows last seen in July 2021. For some perspective, this is over 55% since its all-time high back in November 2021. After taking all this into consideration, it would be all that surprising to see Bitcoin making the rounds in today’s news cycle.

Regardless, as with most dips in significant markets, there are some who see a buying opportunity. In the case of Bitcoin, this would be the country of El Salvador. Namely, the country has added an additional 500 bitcoins to its national balance sheet, marking its largest purchase to date. This news comes directly from El Salvador President Nayib Bukele via a post on his Twitter (NYSE: TWTR) account. With this purchase, the country’s total Bitcoin reserve now stands at 2,301. In detail, this translates to total assets worth about $71.7 million. 

[Read More] Top Stock Market News For Today May 10, 2022 

Upstart Stock Nosedives After Company Issues Downbeat Quarterly And Full-Year Revenue Guidance

Upstart (NASDAQ: UPST) seems to be standing out amongst the most active stocks in the stock market today. This would be for negative reasons, however, as the artificial intelligence (AI) powered digital lending firm is seeing massive losses at today’s opening bell. To be precise, UPST stock is now down by over 50% today. By and large, this is likely a result of the company’s latest outlooks for the current quarter and fiscal year. Before getting into that, let’s take a look at Upstart’s latest quarterly financials.

Going into the specifics, Upstart is looking at earnings of $0.61 per share on revenue of $310 million. This would top consensus Wall Street estimates of $0.53 and $300 million respectively. Also, the company also facilitated 465,537 loans across its platform totaling $4.5 billion. This would be in comparison to the 495,205 loans adding up to $4.1 billion across its platform in the previous quarter. It seems that Upstart is seeing an increase in loan values albeit with a decrease in total loan count. 

More importantly, investors are likely focusing on Upstart’s latest quarterly and full-year revenue outlooks. For starters, the company is expecting revenue of between $295 million to $305 million. This would fall short of consensus analyst projections of $334.8 million. Additionally, Upstart’s full-year guidance of about $1.25 billion is also short of Wall Street estimates of $1.40 billion. Despite all this, CEO Dave Girouard notes, “While this year is shaping up to be a challenging one for the economy, we know the drill and are confident that we can navigate whatever 2022 and beyond might hold.” Safe to say, there will be no shortage of coverage on UPST stock today.

Source: TradingView

[Read More] Best Stocks To Invest In 2022? 4 Software Stocks For Your List

Peloton Stock Slides Following Wider-Than-Expected Losses And Revenue Miss

Similar to Upstart, Peloton (NASDAQ: PTON) appears to be another casualty during this rocky earnings season. For the most part, a combination of growing warehouse inventory and diminishing consumer demand appears to be weighing on the firm. After all, as we transition towards learning to live with the pandemic, more people are out and about than ever. Accordingly, this would lead to fewer people needing to rely on Peloton’s exercise bikes to get in their daily exercise. In fact, even existing Peloton members would see less reason behind paying for their subscriptions. With all this in mind, it is no wonder that PTON stock is looking at losses of over 14% at today’s opening bell. 

Overall, Peloton is looking at a loss per share of $2.27 on revenue of $964.3 million. For reference, this is versus Wall Street projections of an $0.83 per share loss and $972.9 million in revenue. Upon missing these marks, it is increasingly apparent that Peloton is under pressure. To better navigate its current business conditions, Peloton is borrowing $750 million via a five-year term debt from JPMorgan (NYSE: JPM) and Goldman Sachs (NYSE: GS). According to CEO Barry McCarthy, this capital infusion will serve to help Peloton to free cash flow positive by fiscal 2023. While time will tell if it can pull this off, PTON stock remains in the hot spot today.

Source: TradingView

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By Adam Lawrence

Adam Lawrence is a serial entrepreneur and financial writer for StockMarket.com. He calls Miami, Florida his home but has a love for travel. He started his first digital marketing and website design business, in 2006 at the age of 23. He has worked with and consulted for hundreds of publicly traded companies. His vast knowledge of the public markets has allowed him to gain real-world experience in corporate communications. No matter what is going on in the stock market today, Adam is at the front of the line to track new trends and present them to readers.

As an active contributor to other financial sites like GuruFocus and Benzinga, Adam has gained prominence for reporting on several topics. These include biotech stocks, technology stocks, gold stocks, as well as marijuana stocks. These active stock market sectors have presented investors with some of the biggest opportunities in the stock market today. Adam's goal is to present readers with easily digestible content that is both informative and actionable.

Adam's years of experience in digital marketing have helped give him an edge above other financial writers. His ability to pick up on stock market trends before they hit Main Street is one of the things that has afforded him the opportunity to interact with and engage public companies. Reporting on current events is one thing but being able to dissect them and translate them for readers is of the utmost importance. In doing so, Adam has set a personal standard to deliver timely information that dives deeper than simple headlines and goes into the fine details of what's driving stock market trends. He also stays on top of the most current social media trends among top influencers.

With the emerging landscape surrounding new media, Adam takes an active approach to learn what drives interest in different social media and finds ways to tap into whatever is trending at that time then apply it to his approach to the stock market. In his free time, he enjoys being with his family and working on his house. He's also an avid car enthusiast.

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