Key Takeaways
The S&P 500 rose 1.1% on Monday, July 22, as technology companies recovered from last week’s losses and investors digested the political climate and corporate earnings. Clinical researcher IQVIA Holdings led the benchmark index higher, with technology companies ON Semiconductor, Lam Research, Applied Materials and Nvidia also rising. Tesla shares surged as investors anticipated its earnings report tomorrow. Cybersecurity provider CrowdStrike continued to plummet following last week’s technology outage. Verizon fell after earnings fell short of expectations, and AT&T and T-Mobile also fell.
Major U.S. stock indexes rose on Monday, recovering from last week’s sell-off in tech stocks, but the effects of last week’s tech turmoil are still being felt.
Investors were closely monitoring the political situation, which helped lift some tech stocks, and expectations of a flurry of corporate earnings reports this week also boosted shares.
The S&P 500 rose 1.1%, while the tech-heavy Nasdaq added 1.6%, and the Dow Jones Industrial Average rose 0.3%, recovering toward the record high recorded last week.
Clinical research company IQVIA Holdings (IQV) rose 9.2%, leading the S&P 500 higher after reporting better-than-expected earnings and revenue. The company also raised its full-year earnings per share outlook.
Tech stocks rebounded from last week’s selloff as investors digested the U.S. political situation regarding President Joe Biden’s withdrawal from the presidential election and its impact on trade and industrial policy. ON Semiconductor (ON), Lam Research (LRCX), and Applied Materials (AMAT) each rose more than 6%, while NXP Semiconductors (NXPI) rose 5.4%.
Shares of chipmaker Nvidia (NVDA) recovered from a more than 9% drop last week to rise 4.8% after analysts at Piper Sandler raised their price target to $140.
Tesla (TSLA) shares rose nearly 5% ahead of tomorrow’s after-market earnings report, when CEO Elon Musk is expected to update investors on the company’s projects, including its robotaxi system and other self-driving technology.
CrowdStrike (CRWD) extended its decline, dropping 13% as clients continue to deal with disruptions from last week’s technology outage, with analysts pointing to opportunities for some of the cybersecurity provider’s competitors. Delta Air Lines (DAL) shares fell 3.5% after a technology outage forced the airline to cancel 36% of its flights on Sunday.
Verizon (VZ) shares fell 6.1% as investors reacted to the company’s second-quarter earnings report, which showed annual revenue growth of less than 1%, below analysts’ expectations, despite adding internet and mobile phone subscribers. AT&T (T) shares fell 3% ahead of its earnings release on Wednesday, and T-Mobile (TMUS) shares fell 2.3%.
Starbucks (SBUX) fell more than 3%, shedding some of the gains it had made last week after reports that activist investor Elliott Investment Management had taken a stake in the global coffee chain.
Air Products and Chemicals (APD) shares fell 5.5% after Chief Operating Officer Samir Serhan resigned.
