On Wall Street Stocks Extend 8-week Rally

Barry Adams
12 Aug, 2022
New York City

Optimism reigned on Wall Street on the hopes that the recent continued decline in crude oil prices will be reflected in the inflation data for August. 

The inflation peaking theory is taking hold among investors and may are betting that the interest rate hike at the next Fed's policy meeting may be lower than 75 basis points. 

The S&P 500 index futures are indicating 0.5% increase and the Nasdaq Composite index are showing 0.4% rise at the opening.  

For the week, the S&P 500 index is up 0.4% and the Nasdaq Composite index is higher 0.5%. 

The market rally since mid-June has extended the S&P 500 index by 14.7% and the Nasdaq Composite index by 20.0%. 

The S&P 500 index is set to close higher for the fifth week in a row, the longest winning stretch since April 2021. 

 

Movers: Illumina, Poshmark, LegalZoom 

Illumina, Inc plunged 20% after the gene-sequencing technology company said second quarter revenues increased 3% to $1.26 billion from $1.13 billion a year ago. 

The company swung to a net loss of $535 million from $185 million a year ago. 

The current quarter included $609 million in legal contingencies for the potential fine that the European Commission may impose of up to 10% of our consolidated annual revenues and an estimated accrual of $156 million related to the settlement of litigation with the U.K.-based BGI Group in July 2022. 

In the quarter, the diluted loss per share was $3.40 compared to a profit of $1.26 a year ago.  

The company also lowered its 2022 revenue growth outlook to between 4% and 5% and GAAP diluted earnings per share loss between $2.93 and $2.78.  

The company earlier guided in May at the time of the release of the first quarter results consolidated revenue growth in the range of 14% to 16% and GAAP earnings per diluted share of $2.33 to $2.53.

LegalZoom.com Inc jumped 2.2% after the online legal content forms and support provider said revenues in the second quarter increased 9% to $163.8 million from $150.4 million a year ago. 

Net loss in the quarter shrank to $13.8 million or 7 cents a diluted share from $38.4 million or 31 cents a diluted share a year ago. 

Average order value increased 5% to 296 from $282 a year ago and subscription revenues increased to $91.3 million from $69.4 million a year ago. 

The company guided third quarter revenues between $149 million and $151 million. 

The company lowered its full-year 2022 revenues estimate in the range of $612 million to $616 million from the previous estimate between $650 million and $660 million.

Poshmark Inc fell 2% after the social fashion marketplace operator said second quarter revenues increased 9% to $89.1 million and gross merchandise value increased 8% to $483.5 million from $449.6 million a year ago. 

Active buyers in the twelve months ending in 12 months to the second quarter increased 14% to 8 million from 7 million a year ago. 

Second quarter loss jumped to $22.9 million from $2.5 million a year ago and diluted loss per share rose to 29 cents from 3 cents. 

Poshmark guided third quarter revenues between $85 million and $87 million and adjusted operating loss between $9 million and $11 million.