Stocks experienced a bit of a rollercoaster this week, starting off with some selling on Monday and Tuesday before rallying on Wednesday and into Thursday morning. That ended with news of President Biden's "American Family Plan," to be funded mainly by increasing the capital gains tax and the top income tax rate. Markets sold off on the news, then rebounded today (Friday).
At the time of this writing (3pm on Friday), the Dow Industrials (DJI) was down about 0.3% for the week, with the Nasdaq Composite (COMP.IND) off about 0.1%. The S&P 500 (SP500) is effectively flat week-over-week. The Russell 2000 (RTY) was the lone winner among major indexes, climbing about 0.9%.
It was a bad week for cryptocurrencies, with bitcoin (BTC-USD) dropping by about 8% WoW and 25% since setting an all-time high. Coinbase (NASDAQ:COIN) also fell in its second week as a public company, tracking bitcoin to give up 9%, before rebounding a bit today.
Winners & LosersEarnings mostly determined winners and losers.
Airlines were one big loser, with the JETS ETF (NYSEARCA:JETS) down almost 5% after several names reported earnings that came up short of analyst estimates. Shares of American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) were off about 9% each. Southwest Airlines (NYSE:LUV) managed to beat on EPS but missed on revenue and saw its stock decline about 3% for the week.
Netflix (NASDAQ:NFLX) was another big loser, dropping about 7% this week after disappointing subscriber results and guidance.
Winners included Equifax (NYSE:EFX), which gained almost 18% for the week after beating earnings estimates and providing strong guidance. Edwards Lifesciences (NYSE:EW)(+9% WoW) hit an all-time high after its quarterly results beat estimates across the board. Intuitive Surgical (NASDAQ:ISRG) added 7% after beating earnings estimates and receiving an upgrade from Baird.
Kansas City Southern (NYSE:KSU) shares added almost 15% as the company was caught in a bidding war between Canadian National (NYSE:CNI) and Canadian Pacific (NYSE:CP), with the former likely emerging as the winner late in the week.
What Caught Our Attention This WeekKim: European Super League fiasco;
Brad: Rising COVID cases in India;
Stephen: SA's capital gains tax coverage;
Nat: Bitcoin sell-off.
Learn more about your ad choices. Visit megaphone.fm/adchoices