Mid-Morning Market Update: Markets Open Lower; United Natural Foods Tops Q3 Views

U.S. stocks traded lower this morning, with the Dow Jones dropping more than 100 points on Tuesday.

Following the market opening Tuesday, the Dow traded down 0.44% to 32,770.84 while the NASDAQ fell 0.41% to 12,011.39. The S&P also fell, dropping, 0.38% to 4,105.77.

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Leading and Lagging Sectors

Energy shares jumped by 1.6% on Tuesday. Meanwhile, top gainers in the sector included Peabody Energy Corporation BTU, up 11% and Arch Resources, Inc. ARCH up 7%.

In trading on Tuesday, consumer discretionary shares fell 1.6%.

Top Headline

United Natural Foods Inc UNFI reported upbeat results for its third quarter.

United Natural Foods reported third-quarter FY22 sales growth of 9.2% year-on-year to $7.24 billion, beating the consensus of $7.10 billion. Adjusted EPS of $1.10 beat the analyst consensus of $0.97.

United Natural Foods sees FY22 sales of $28.8 billion - $29.1 billion (prior view $28.2 billion - $28.7 billion), against the consensus of $28.66 billion. It currently expects FY22 adjusted EPS of $4.65 - $4.90 (prior view $3.90 - $4.20) versus the consensus of $4.16.

Equities Trading UP

JanOne Inc. JAN shares shot up 47% to $3.67 after the company announced that a patent was issued that covers a method of improving nerve function using JAN101.

Shares of Mirati Therapeutics, Inc. MRTX got a boost, shooting 26% to $54.49 after JMP Securities upgraded the stock from Market Perform to Market Outperform and announced a $72 price target.

Houston American Energy Corp. HUSA shares were also up, gaining 20% to $5.87.

Equities Trading DOWN

Boxed, Inc. BOXD shares tumbled 22% to $4.29. Boxed announced addition to the Russell 2000 index.

Shares of REV Group, Inc. REVG were down 19% to $9.85 after the company reported downbeat Q2 results and lowered FY22 guidance

AeroClean Technologies, Inc. AERC was down, falling 17% to $3.9350. AeroClean Technologies shares jumped 100% on Monday after the FDA granted clearance for the company's pūrgo technology, classifying it as a class II medical device.

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Commodities

In commodity news, oil traded down 0.3% to $118.19, while gold traded up 0.3% to $1,849.60.

Silver traded down 0.5% to $21.99 on Tuesday while copper fell 1.2% to $4.3805.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 0.5%, London’s FTSE 100 slipped 0.1% while Spain’s IBEX 35 Index fell 0.2%. The German DAX dropped 0.9%, French CAC 40 fell 0.7% and Italy’s FTSE MIB Index declined 0.9%.

The S&P Global Eurozone construction PMI declined to 49.2 in May from 50.4 in April, while the S&P Global/CIPS UK services PMI rose to 53.4 in May from a preliminary reading of 51.8. Italy’s construction PMI dropped to 54.3 in May from 59 a month ago, while Germany’s construction PMI fell to 45.4 in May from 46.0 in April. France’s construction PMI climbed to 50.9 in May from 50.6 in the previous month.

 

Economics

The trade deficit shrank to a four-month low of $87.1 billion in April from a record level of $107.7 billion in March. Exports from the US increased by 3.5%, while imports dropped by 3.7% in April.

The Logistics Manager’s Index dropped to 67.1 in May, recording the lowest level since December 2020.

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

Data on consumer credit for April will be released at 3:00 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 86,637,480 cases with around 1,033,830 deaths. India confirmed a total of at least 43,185,040 cases and 524,700 deaths, while Brazil reported over 31,195,110 COVID-19 cases with 667,100 deaths. In total, there were at least 536,026,890 cases of COVID-19 worldwide with more than 6,321,790 deaths.