Crude Oil Moves Lower; Advance Auto Parts Shares Fall After Q1 Results

U.S. stocks traded lower midway through trading, with the Dow Jones index falling more than 350 points on Wednesday.

The Dow traded down 0.92% to 38,494.43 while the NASDAQ fell 0.43% to 16,946.37. The S&P 500 also fell, dropping, 0.63% to 5,272.54  .

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Leading and Lagging Sectors

Communication services shares fell by just 0.1% on Wednesday.

In trading on Wednesday, energy shares dipped by 1.6%.

Top Headline

Shares of Advance Auto Parts Inc. AAP fell over 6% on Wednesday after the company posted results for its first quarter on Wednesday.

The company reported first-quarter earnings per share of 67 cents, beating the street view of 64 cents. Net sales totaled $3.406 billion in the first quarter of 2024, a 0.3% decrease from the prior year's first quarter. Comparable store sales decreased 0.2%. Sales missed the analyst consensus of $3.425 billion.

Equities Trading UP
                       

• ReShape Lifesciences Inc. RSLS shares shot up 44% to $0.3001 after the company announced that it received a notice of allowance for its U.S. patent application 17/572,387 titled “INTRAGASTRIC DEVICE (FOR TREATING OBESITY)”
• Shares of Brand Engagement Network, Inc. BNAI got a boost, surging 79% to $2.2782 after the company announced a $4.95 million private placement and appointed Paul Chang to Co-CEO.
• Innovative Eyewear, Inc. LUCY shares were also up, gaining 149% to $1.02 after the company launched its Eddie Bauer Smart Eyewear collection.

Equities Trading DOWN

• Cue Health Inc. HLTH shares dropped 35% to $0.0594 after the company announced that it filed voluntary petitions under Chapter 7 of the U.S. Bankruptcy Code in the District of Delaware to pursue a wind down of its business.
• Shares of American Airlines Group Inc. AAL were down 15% to $11.42 after the company announced the departure of its executive vice president and lowered guidance for the second quarter.
• Faraday Future Intelligent Electric Inc FFIE was down, falling 44% to $0.6501. Faraday Future's annual report for fiscal year 2023 showed a revenue of $0.8 million, significantly below analyst estimates of $2.59 million. While the net loss narrowed from $602 million in 2022 to $432 million in 2023, it still paints a concerning financial picture.

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Commodities

In commodity news, oil traded down 0.8% to $79.20 while gold traded down 0.5% at $2,344.00.

Silver traded up 0.2% to $32.19 on Wednesday, while copper fell 1.3% to $4.7910.

Euro zone

European shares were lower today. The eurozone's STOXX 600 fell 0.99%, Germany's DAX slipped 0.99% and France's CAC 40 declined 1.35%. Spain's IBEX 35 Index fell 1.01%, while London's FTSE 100 declined 0.81%.

The manufacturing confidence index in Italy climbed to 88.4 in May versus a revised reading of 87.7 in the prior month, while consumer confidence index in Italy rose to 96.4 in May versus 95.2 a month ago.

Bank lending to households in the Eurozone rose by 0.2% year-over-year in April, compared to market estimates of 0.4%. The consumer confidence indicator in France came in unchanged at 90 in May, while German GfK Consumer Climate Indicator climbed to -20.9 heading into June versus a revised reading of -24.0 in the prior period.

Asia Pacific Markets

Asian markets closed mostly lower on Wednesday, with Japan's Nikkei falling 0.77%, China's Composite Index gaining 0.05%, Hong Kong's Hang Seng Index falling 1.83% and India's S&P BSE Sensex falling 0.89%.

The consumer confidence index in Japan declined to 36.2 in May versus 38.3 in the prior month, while Domestic Supply Price Index in Singapore fell 0.1% year-over-year for April.

Economics

• Mortgage applications in the US declined by 5.7% from the prior week during the period ending May 24.
• The Dallas Fed general business activity index for Texas’ service sector declined to -12.1 in May compared to -10.6 a month ago.

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