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U.S. equity markets reversed a two-day losing streak and spiked higher on strong corporate earnings and a positive report on the services sector (more below). 

All but five stocks in the Dow were higher, led by Disney (DIS) and Apple (AAPL), with shares up about 4%. Shares of the other FAAMG companies gained 2% or more. Moderna (MRNA) and PayPal (PYPL) were the top-performing stocks in the S&P 500 as both firms posted better-than-expected quarterly results and announced share repurchase plans. NortonLifeLock (NLOK) shares also jumped after U.K. regulators gave provisional approval to the online security firm’s purchase of British rival, Avast. CVS Health (CVS) shares gained as the drugstore chain surpassed earnings estimates and raised its full-year guidance. Ford (F) reported a big increase in sales, and its shares rose.

Worse-than-expected earnings news from solar power equipment maker Solaredge Technologies (SEDG) and online dating platform Match Group (MTCH) sent their shares plummeting.

Oil futures fell as U.S. stockpiles increased and members of OPEC+ agreed to an increase of 100,000 barrels per day in its production target starting next month. That dragged down shares of fossil fuel providers, with Chevron (CVX) the biggest laggard on the Dow. 

Interest Rate Hikes

The yield on the 10-year Treasury note initially rose as St. Louis Federal Reserve Bank President James Bullard added to comments from other Fed officials that interest rates may still need to be raised much higher to fight inflation. However, it faded in the afternoon and turned lower. The U.S. dollar advanced against the pound and yen.

Bitcoin and most other major cryptocurrencies advanced, but Solana traded lower as almost 8,000 Solana digital wallets were hacked by thieves who took millions of dollars worth of customer assets.. 

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Moderna Revenue Jumps on COVID-19 Vaccine Sales

Moderna (MRNA) was the best-performing stock in the S&P 500 as the drugmaker reported better-than-expected profit and sales, and announced a new share repurchase program.

Moderna posted second quarter revenue of $4.75 billion, a gain of 9%, with earnings per share (EPS) of $5.24. Both were well above analysts’ forecasts. The company said the revenue gain came primarily from increased sales of its COVID-19 vaccine.

CEO Stéphane Bancel indicated that “given our strong financial position and commercial momentum,” the board agreed to a $3 billion stock buyback. He explained that “we continue to see significant scientific and business momentum," noting “we have never been as optimistic about Moderna’s future.”

Higher Sales in Q4

The company anticipates sales in the fourth quarter will be higher than the current quarter because of the timing for approval of its updated COVID-19 shot, and the ramp-up of related manufacturing of new products. Moderna announced last week the U.S. government agreed to purchase 66 million doses of its updated vaccine for the omicron BA.4 and BA.5 variants of the virus for $1.74 billion. The deal includes an option to purchase 234 million more doses.  The company noted that is part of the $21 billion in advance purchase agreement sales it expects for 2022. 

Moderna shares shot up 16% today, but even with that jump they’re down 26% this year. 

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