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Tesla, Nvidia, tech stocks bounce early in week

Posted on by darion

Key conclusions

  • The S&P 500 rose 1.1% on Monday, July 22, as technology companies recovered losses from the previous week and investors analyzed political events and corporate earnings.
  • Clinical research company IQVIA Holdings led the index, while technology companies ON Semiconductor, Lam Research, Applied Materials and Nvidia also rose.
  • Tesla shares rose as investors awaited the company’s earnings report tomorrow.
  • Cybersecurity solutions provider CrowdStrike has seen a further decline following a technical outage last week.
  • Weak Verizon revenues sent the company’s value tumbling, while AT&T and T-Mobile saw further declines.

Major U.S. stock indexes rose on Monday, recouping losses from last week’s tech sector sell-off, although the effects of last week’s disruptions in the technology sector were still being felt.

Investors closely followed political events, which helped some tech stocks rise. Anticipation of a wave of corporate earnings reports this week also lifted stocks.

The S&P 500 rose 1.1%, while the technology-heavy Nasdaq gained 1.6%. The Dow Jones Industrial Average rose 0.3%, returning to a record high set last week.

Clinical research firm IQVIA Holdings (IQV) led the S&P 500, rising 9.2% after its earnings showed better-than-expected revenue and income. The company also raised its full-year earnings per share guidance.

Technology stocks rebounded from last week’s sell-off as investors analyzed U.S. political developments related to President Joe Biden’s withdrawal from the presidential race and its implications for trade and industrial policy. ON Semiconductor (ON), Lam Research (LRCX) and Applied Materials (AMAT) rose more than 6%, while NXP Semiconductors (NXPI) rose 5.4%.

Nvidia (NVDA) shares rose 4.8% as the chipmaker recovered from a more than 9% decline last week, helped by a price target increase to $140 from analysts at Piper Sandler.

Tesla (TSLA) shares rose nearly 5% ahead of its earnings report tomorrow after markets close, when CEO Elon Musk is expected to update investors on the company’s projects, including a robotaxi system and other autonomous driving technologies.

CrowdStrike (CRWD) continued its slide, shedding 13% as customer businesses continued to work through disruptions caused by last week’s technical outage, prompting analysts to point to an opportunity for some of the cybersecurity provider’s competitors. Delta Air Lines (DAL) shares fell 3.5% as the airline was forced to cancel 36% of its flights on Sunday due to a technical outage.

Verizon (VZ) shares fell 6.1% after investors reacted to a second-quarter earnings report that showed year-over-year revenue growth of less than 1%, falling short of analysts’ estimates even after adding internet and mobile subscribers. AT&T (T) shares fell 3% ahead of the report Wednesday, while T-Mobile (TMUS) shares fell 2.3%.

Starbucks (SBUX) shares fell more than 3%, giving up some of the previous week’s gains that came on reports that investor Elliott Investment Management had acquired a stake in the global coffee chain.

Air Products and Chemicals (APD) shares fell 5.5% after COO Samir Serhan resigned.