Mid-Day Market Update: Dow Drops Over 200 Points; CynergisTek Shares Jump

U.S. stocks traded lower midway through trading, with the Dow Jones dropping more than 200 points on Tuesday.

The Dow traded down 0.63% to 31,678.15while the NASDAQ fell 2.42% to 11,256.60. The S&P also fell, dropping, 1.42% to 3,917.14.

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Leading and Lagging Sectors

Consumer staples shares rose by 0.2% on Tuesday. Meanwhile, top gainers in the sector included NaturalShrimp Incorporated SHMP, up 4% and Sprouts Farmers Market, Inc. SFM up 2%.

In trading on Tuesday, communication services shares dipped 5.5%.

Top Headline

Best Buy Co., Inc. BBY reported mixed results for its first quarter and lowered guidance for FY23.

Best Buy posted quarterly adjusted earnings of $1.57 per share, missing analysts’ estimates of $1.63 per share. The company’s sales came in at $10.65 billion, versus expectations of $10.43 billion.

Best Buy lowered FY23 adjusted EPS guidance from $8.85-$9.15 to $8.40-$9.00. The company also reduced sales guidance from $49.3 billion-$50.8 billion to $48.3 billion-$49.9 billion.

 

Equities Trading UP

America's Car-Mart, Inc. CRMT shares shot up 24% to $94.69 after reporting better-than-expected Q4 results.

Shares of SciSparc Ltd. SPRC got a boost, shooting 46% to $3.3307. SciSparc reported positive safety profile results from its joint pre-clinical trial with Clearmind Medicine Inc.

CynergisTek, Inc. CTEK shares were also up, gaining 100% to $1.1779 after the company entered into a definitive agreement to be acquired by Clearwater Compliance for roughly $17.7 million.

Equities Trading DOWN

MSP Recovery Inc. MSPR shares tumbled 64% to $3.89. MSP Recovery’s Class A Common Stock and warrants started trading today.

Shares of Snap Inc. SNAP were down 41% to $13.31. The parent company of Snapchat filed a form 8-K with the U.S. Securities and Exchange Commission to lower its previously-issued guidance for the second quarter. When Snap originally issued its guidance for the quarter on April 21, the company forecast second-quarter revenues to come in 20% to 25% above the same period the year prior.

Genocea Biosciences, Inc. GNCA was down, falling 67% to $0.0742 after the company announced it is winding down operations and delisting from NASDAQ.

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Commodities

In commodity news, oil traded up 0.1% to $110.42, while gold traded up 0.8% to $1,863.00.

Silver traded up 1.4% to $22.035 on Tuesday while copper fell 1.3% to $4.29.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 1.08%, London’s FTSE 100 fell 0.31% and Spain’s IBEX 35 Index fell 0.11%. The German DAX dropped 1.58%, French CAC 40 dipped 1.49% and Italy’s FTSE MIB Index fell 1.01%.

The S&P Global Flash Eurozone services PMI declined to 56.3 in May from 57.7 in April, while manufacturing PMI slipped to 54.4 from 55.5. UK’s services PMI fell to 51.8 in May from 58.9 in April, while manufacturing PMI dropped to a 16-month low of 54.6 in May.

French composite PMI slipped to 57.1 in May from April's 51-month high of 57.6, while German composite PMI rose to 54.6 from 54.3.

Economics

The S&P Global US services PMI declined to 53.5 in May from 55.6 in the earlier month, while manufacturing PMI dropped to 57.5 from 59.2.

US new home sales dropped 16.6% to an annual rate of 591,000 in April.

The Richmond Fed manufacturing index dipped to -9 in May from 14 in the prior month.

The Treasury is set to auction 2-year notes at 1:00 p.m. ET.

Data on money supply for April will be released at 1:00 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 85,113,960 cases with around 1,029,120 deaths. India confirmed a total of at least 43,140,060 cases and 524,490 deaths, while Brazil reported over 30,803,990 COVID-19 cases with 665,720 deaths. In total, there were at least 528,395,430 cases of COVID-19 worldwide with more than 6,302,050 deaths.