Mid-Afternoon Market Update: Nasdaq Down 200 Points; Dutch Bros Shares Plunge

U.S. stocks traded lower toward the end of trading, with the Nasdaq Composite dropping more than 200 points on Thursday.

The Dow traded down 1.68% to 31,299.91 while the NASDAQ fell 1.88% to 11,150.53. The S&P also fell, dropping, 1.70% to 3,868.37.

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Leading and Lagging Sectors

Health care shares rose by 0.3% on Thursday. Meanwhile, top gainers in the sector included Compass Therapeutics, Inc. CMPX, up 28% and Cullinan Oncology, Inc. CGEM up 26%.

In trading on Thursday, information technology shares dipped 2.7%.

Top Headline

U.S. producer prices rose 0.5% month-over-month in April following a revised 1.6% increase in March.

 

Equities Trading UP

AppLovin Corporation APP shares shot up 36% to $37.17 after the company reported better-than-expected Q1 sales results and announced a $750 million share buyback.

Shares of Squarespace, Inc. SQSP got a boost, shooting 39% to $20.11 after the company reported better-than-expected Q1 sales results and issued Q2 and FY22 sales guidance above analyst estimates. The company also announced a buyback program of up to $200 million.

Lordstown Motors Corp. RIDE shares were also up, gaining 43% to $2.1650. The company said on Wednesday it has closed a $230 million deal to sell its Ohio factory to Taiwan’s Hon Hai Technology, better known as Foxconn

Equities Trading DOWN

Dutch Bros Inc. BROS shares tumbled 29% to $24.51 after the company reported worse-than-expected Q1 EPS results and issued FY22 revenue guidance below analyst estimates.

Shares of Atento S.A. ATTO were down 35% to $15.25 after reporting Q1 results.

Outbrain Inc. OB was down, falling 21% to $6.24 after reporting Q1 results.

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Commodities

In commodity news, oil traded down 0.2% to $105.52, while gold traded down 1.7% to $1,822.10.

Silver traded down 4.5% to $20.615 on Thursday while copper fell 2.9% to $4.0875.

Euro zone

European shares closed lower today. The eurozone’s STOXX 600 fell 0.75%, London’s FTSE 100 dipped 1.56% and Spain’s IBEX 35 Index fell 1.35%. The German DAX dropped 0.64%, French CAC 40 fell 1.01% and Italy’s FTSE MIB Index declined 0.67%.

The British economy grew 8.7% year-over-year in the first quarter, compared to 6.6% growth in the previous quarter. Construction output in the UK increased by 4.7% year-over-year in March, while industrial production eased 0.2% from a month ago in March. The UK trade deficit widened to GBP 11.5 billion in March from a revised GBP 9.2 billion gap in the prior month.

Economics

U.S. initial jobless claims rose by 1 thousand to 203 thousand in the week ended May 7th, versus a revised 202 thousand in the prior period.

Producer prices rose 0.5% month-over-month in April following a revised 1.6% increase in March.

Federal Reserve Bank of San Francisco President Mary Daly will speak at 4:00 p.m. ET.

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COVID-19 Update

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 83,953,370 cases with around 1,025,760 deaths. India confirmed a total of at least 43,113,410 cases and 524,180 deaths, while Brazil reported over 30,617,780 COVID-19 cases with 664,560 deaths. In total, there were at least 519,244,720 cases of COVID-19 worldwide with more than 6,282,530 deaths.