Mid-Morning Market Update: Markets Open Lower; Target Profit Beats Estimates

Following the market opening Wednesday, the Dow traded down 1.47% to 33,559.29 while the NASDAQ fell 1.29% to 13,131.99. The S&P also fell, dropping 1.42% to 4,069.40.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 32,997,870 cases with around 587,220 deaths. India confirmed a total of at least 25,496,330 cases and 283,240 deaths, while Brazil reported over 15,732,830 COVID-19 cases with 439,050 deaths. In total, there were at least 164,284,760 cases of COVID-19 worldwide with more than 3,406,260 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Consumer staples shares slipped by just 0.8% on Wednesday. Meanwhile, top gainers in the sector included BRF S.A. BRFS, up 3%, and Coca-Cola Consolidated, Inc. COKE, up 2%.

In trading on Wednesday, energy shares dipped 3.3%.

Top Headline

Target Corporation WMT reported stronger-than-expected results for its first quarter.

Target reported quarterly adjusted earnings of $3.69 per share, beating analysts’ estimates of $2.25 per share. The company’s quarterly sales came in at $24.20 billion, exceeding market views of $21.81 billion. Target’s store comparable sales surged 18% last quarter.

Target said it sees Q2 comparable sales growth in mid-to-high single digits.

Equities Trading UP

MoSys, Inc. MOSY shares shot up 40% to $5.29.

Shares of Reata Pharmaceuticals, Inc. RETA got a boost, shooting 18% to $98.02. Reata Pharmaceuticals announced that it received a communication from the Division of Neurology Products 1 of the FDA, stating that, after a preliminary review of briefing materials for an upcoming Type C meeting, a pre-NDA meeting is the most appropriate format for a discussion of the development program for omaveloxolone in Friedreich's ataxia.

LightPath Technologies, Inc. LPTH shares were also up, gaining 12% to $2.6295 after the company announced NASA's JPL recently confirmed that optical elements manufactured by its subsidiary is supporting the Mars Curiosity Rover's efforts in the NASA Science Exploration Program.

Check out these big movers of the day

Equities Trading DOWN

BIT Mining Limited BTCM shares tumbled 19% to $11.06. BIT Mining said it entered into binding investment term sheet with Bitdeer's Dory creek to invest $25.74 million in a crypto mining data center in Texas.

Shares of Iovance Biotherapeutics, Inc. IOVA were down 18% to $22.24. Iovance Biotherapeutics received regulatory feedback from the FDA on its potency assays for lifileucel. Following FDA feedback, Iovance will have to submit additional assay data and meet with the FDA in the second half of 2021.

InnSuites Hospitality Trust IHT was down, falling 14% to $5.08. The company recently reported 2021 sales of $4.20 million versus $6.57 million year over year.

Commodities

In commodity news, oil traded down 1.7% to $64.36, while gold traded down 0.6% to $1,857.80.

Silver traded down 2% Wednesday to $27.775 while copper fell 2.2% to $4.62.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 declined 1.1%, the Spanish Ibex Index fell 0.4% and the German DAX 30 dropped 1.3%. Meanwhile, the London’s FTSE 100 dropped 1.1%, French CAC 40 dipped 1.1% and Italy’s FTSE MIB tumbled 1%.

The Eurozone’s consumer price inflation rate was confirmed at 1.6% year-over-year in April, while new car registrations in the European Union jumped 218.6% year-over-year in April.

Producer prices in the UK increased 3.9% year-over-year in April, while UK’s annual inflation rate rose to 1.5% in April from 0.7% in March.

Economics

The Energy Information Administration’s weekly report on petroleum inventories is scheduled for release at 10:30 a.m. ET.

The Treasury is set to auction 20-year bonds at 1:00 p.m. ET.

The Federal Open Market Committee will issue minutes of its latest meeting at 2:00 p.m. ET.

Check out the full economic calendar here