Stocks continued on a volatile path Thursday, with all three major U.S. indices finishing firmly in the red. The markets had begun the day with modest gains but sold off heavily throughout the trading session.
One potential factor contributing to the ramp-up in pessimism was a failed stimulus vote on Capitol Hill. A $300 billion relief package failed in the U.S. Senate, on a largely partisan 52-47 vote, not meeting the 60 needed to break the Democratic filibuster. Democrats claimed the bill had no chance of passing the House and was an insufficient remedy for everyday Americans hit by the pandemic.
The expectation for another round of relief has been one of the central narratives behind the stock market’s run-up since March. The Dow Jones Industrial Average lost 405 points, or 1.45%, to finish at 27,534 on Thursday.
Restoration Hardware jumps. RH (ticker: RH), formerly known as Restoration Hardware, saw shares soar 20% on the day after an earnings report revealed stronger-than-expected demand for its luxury home goods.
Earnings per share jumped 30% from the same quarter a year ago, as the company reaps the rewards of a strong housing market and a trend to move from urban to suburban areas.
Peloton surges on first profit. Home workout equipment maker Peloton ( PTON) saw its stock move higher in after-hours trading on Thursday, as demand for its stationary bike and treadmill soared amid the pandemic.
Revenue jumped 172% and the company swung to a $89.1 million profit — its first quarterly profit and a far cry from the $47.4 million loss in the same quarter a year ago.
Unlike more traditional fitness machines, Peloton models are high-tech, outfitted with a screen where users can subscribe to remote workout classes. This provides the opportunity for recurring subscription revenue and higher margins. Connected fitness subscribers, who pay for workout classes to stream through their equipment rather than a separate device, rocketed 113% to 1.09 million.
The company has often been mentioned as a buyout target for Apple ( AAPL); Peloton could stimulate its growth prospects, improve subscription revenue and help the tech giant become more firmly ingrained in consumer homes.
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