Mid-Morning Market Update: Markets Open Lower; TransDigm Profit Tops Estimates

Following the market opening Tuesday, the Dow traded down 1.68% to 34,157.88 while the NASDAQ fell 1.65% to 13,181.13. The S&P also fell, dropping 1.67% to 4,118.33.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 32,744,400 cases with around 582,160 deaths. India confirmed a total of at least 22,992,510 cases and 249,990 deaths, while Brazil reported over 15,209,990 COVID-19 cases with 423,220 deaths. In total, there were at least 158,988,250 cases of COVID-19 worldwide with more than 3,304,920 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Consumer staples shares slipped by just 0.4% on Tuesday. Meanwhile, top gainers in the sector included Vital Farms, Inc. VITL, up 11%, and Yatsen Holding Limited YSG, up 4%.

In trading on Tuesday, energy shares dipped 2.9%.

Top Headline

TransDigm Group Incorporated TDG reported better-than-expected results for its second quarter.

TransDigm reported quarterly earnings of $2.58 per share, beating analysts’ estimates of $2.51 per share. The company’s quarterly sales came in at $1.19 billion, versus expectations of $1.17 billion.

TransDigm also said its FY21 guidance remains suspended.

 

Equities Trading UP

Ferro Corporation FOE shares shot up 23% to $21.58 after the company agreed to be acquired by Price International Corporation in a $2.1 billion all-cash transaction. The company also reported upbeat quarterly earnings.

Shares of Sequential Brands Group, Inc. SQBG got a boost, shooting 25% to $12.08 after dropping 11% on Monday.

3D Systems Corporation DDD shares were also up, gaining 21% to $21.43 after the company reported better-than-expected Q1 results.

Check out these big movers of the day

Equities Trading DOWN

Alset EHome International Inc. AEI shares tumbled 37% to $3.9893. Alset EHome International priced $32.0 million underwritten public offering of units.

Shares of InnSuites Hospitality Trust IHT were down 26% to $4.755 after jumping over 82% on Monday.

Rekor Systems, Inc. REKR was down, falling 26% to $10.10 after the company reported a wider-than-expected quarterly loss.

Commodities

In commodity news, oil traded down 0.9% to $64.34, while gold traded up 0.2% to $1,841.40.

Silver traded up 0.3% Tuesday to $27.585 while copper rose 1.5% to $4.7855.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 dipped 2.2%, the Spanish Ibex Index fell 1.6% and the German DAX 30 dropped 2.3%. Meanwhile, the London’s FTSE 100 fell 2.3%, French CAC 40 fell 2.1% and Italy’s FTSE MIB declined 2%.

The ZEW Indicator of Economic Sentiment for the Eurozone surged 17.7 points to 84 in May, while German ZEW Indicator of Economic Sentiment climbed 13.7 points to 84.4. Germany’s wholesale prices rose 7.2% year-over-year in April, while industrial production in Italy fell 0.1% in March.

Economics

The NFIB small business optimism index increased by 1.6 points to a reading of 99.8 in April.

The Johnson Redbook Retail Sales Index jumped 13.3% year-over-year during the first week of May.

The number of job openings climbed 597,000 from the prior month to 8.123 million in March.

Federal Reserve Governor Lael Brainard will speak at 12:00 p.m. ET.

Federal Reserve Bank of San Francisco President Mary Daly is set to speak at 1:00 p.m. ET.

The Treasury is set to auction 3-year notes at 1:00 p.m. ET.

Federal Reserve Bank of Atlanta President Raphael Bostic will speak at 1:15 p.m. ET.

Philadelphia Fed President Patrick Harker is set to speak at 2:00 p.m. ET.

Check out the full economic calendar here