Stocks bounced back in a big way on Tuesday.
After enduring a couple of touchy weeks, investors were back in rally mode on the week’s second day with the Dow gaining 196 points, or 0.9%, the S&P 500 adding 24 points, or just about 1%, and the tech-heavy Nasdaq gaining 84 points, or 1.3%.
Some outlets attributed Tuesday’s rally to hopes for tax reform being rekindled after a story from Politico on Tuesday morning indicated members of the Trump administration were making progress on a tax reform plan. Later in the afternoon, however, The New York Times reported that President Donald Trump and Senate Majority Leader Mitch McConnell haven’t spoken in weeks.
Though as we’ve noted time and again, markets seem to have largely discounted any major action from the Trump administration changing the calculus for U.S. corporates, and the lack of a tax plan — on of Trump’s signature campaign items — seems unlikely to be a major concern for markets at this juncture.
On Tuesday, the FAANG stocks — comprised of Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Google (GOOGL) — were market leaders, with each of these stocks adding at least 1.1% and Google gaining ore than 2.1%. Other notable tech gainers were Nvidia (NVDA), up 2.2%, and Snap Inc. (SNAP), up 7%.
On Wednesday, investors will turn their attention in the tech space to an older stalwart of the sector, HP Inc. (HPQ), which is set to report after the market close. Wall Street analysts are looking for the company, which houses the printer and computer unit of the company that was split earlier this year, to report a loss of $0.22 per share on revenue of $483.8 million. HP Enterprise (HPE), is home to the remainder of the company’s business.
Shares of HP are up 28% this year while HP Enterprise has seen shares slide 23% since the start of the year.
Also on the earnings docket on Wednesday will be results from home improvement retailer Lowe’s (LOW), which is expected to report earnings per share of $1.16 on revenue of $19.5 billion in its second quarter, according to estimates from Bloomberg. Analysts are also looking for same-store sales to rise 4.4%.
On Tuesday, Yahoo Finance’s Nicole Sinclair noted that Home Depot (HD) has been seeing sales growth that far outpaces Lowe’s in recent year, as Home Depot has emphasized its professional customer — general contractors, remodelers, and small business owners — which tends to be a higher spending customer.
The economic calendar on Wednesday is a bit more busy than Tuesday, with new home sales for July expected in the morning as well as a preliminary look at activity in the services sector from Markit Economics.
Also on Wednesday will be the latest Powerball lottery drawing, with the jackpot now up to about $700 million as of Tuesday afternoon. This will be the second-largest drawing for the lottery behind only the $1.5 billion drawing back in January 2016.
Business Insider’s Andy Kiersz did the math on whether it is worth it to buy a ticket considering the odds. Of course, the answer is no, as the after-tax value of the prize is negative — meaning you are literally throwing money away by playing.
But if you are going to play the lottery, we suggest not feeling too bad about “wasting” the $2 or $10 or even $20 you spend on tickets. As a consumer, you do get some utility from this purchase. You get to daydream about what you’d do with the winnings with the knowledge that though it is minuscule, you do actually have a chance to win.
Additionally, saving money isn’t really about skipping the $2 lottery ticket or $3 cup of coffee. It is about not buying a house or car you can’t afford and ensuring you live within your means, save diligently, and stick to your financial plan.
So good luck. We’ll be playing, too.
Myles Udland is a writer at Yahoo Finance. Follow him on Twitter @MylesUdland
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