Mid-Morning Market Update: Markets Open Higher; US Producer Prices Increase 0.8% In May

U.S. stocks traded higher this morning, with the Dow Jones gaining by more than 100 points on Tuesday.

Following the market opening Tuesday, the Dow traded up 0.45% to 30,653.98 while the NASDAQ rose 0.52% to 10,865.65. The S&P also rose, gaining, 0.59% to 3,771.92.

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Leading and Lagging Sectors

Energy shares jumped by 2.8% on Tuesday. Meanwhile, top gainers in the sector included Continental Resources, Inc. CLR, up 15% and Dynagas LNG Partners LP DLNG up 6%.

In trading on Tuesday, real estate shares fell by 0.4%.

Top Headline

US producer prices rose 0.8% month-over-month in May, following a 0.4% increase in the previous month. Analysts were also expecting for a 0.8% increase in prices.

Equities Trading UP

Houston American Energy Corp. HUSA shares shot up 24% to $7.78.

Shares of New Oriental Education & Technology Group Inc. EDU got a boost, shooting 20% to $20.45. JP Morgan, on Monday, upgraded the stock from Neutral to Overweight and raised its price target from $14 to $24.

Indonesia Energy Corporation Limited INDO shares were also up, gaining 19% to $9.21.

Equities Trading DOWN

Outset Medical, Inc. OM shares tumbled 31% to $14.14. Outset Medical implemented a shipment hold on the distribution of its Tablo Hemodialysis System for home use pending the FDA review and clearance of a 510(k).

Shares of Redbox Entertainment Inc. RDBX were down 21% to $12.09 after surging more than 15% on Monday.

HeartCore Enterprises, Inc. HTCR was down, falling 15% to $1.80.

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Commodities

In commodity news, oil traded up 2% to $123.32, while gold traded down 0.8% to $1,817.20.

Silver traded down 0.8% to $21.09 on Tuesday while copper fell 0.4% to $4.1965.

Euro zone

European shares were mixed today. The eurozone’s STOXX 600 fell 0.4%, London’s FTSE 100 gained 0.3% while Spain’s IBEX 35 Index fell 0.2%. The German DAX gained 0.1%, French CAC 40 fell 0.2% and Italy’s FTSE MIB Index rose 0.7%.

Wholesale prices in Germany climbed 22.9% year-over-year in May following a record 23.8% surge in the prior month, while annual inflation rate in the country was confirmed at 7.9% in May.

Average weekly earnings including bonuses in the UK rose by 6.8% year-over-year to GBP 604 during the three months to April, while jobless rate rose to 3.8% in the three months to April from 3.7% in the three months to March.

Economics

The Federal Open Market Committee begins its two-day policy meeting today.

The NFIB small business optimism index fell to 93.1 in May from 93.2 in April.

US producer prices rose 0.8% month-over-month in May, following a 0.4% increase in the previous month. Analysts were also expecting for a 0.8% increase in prices.

The Treasury is set to auction 52-week bills at 11:30 a.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 87,424,840 cases with around 1,036,080 deaths. India confirmed a total of at least 43,236,690 cases and 524,770 deaths, while Brazil reported over 31,497,030 COVID-19 cases with 668,230 deaths. In total, there were at least 541,111,130 cases of COVID-19 worldwide with more than 6,332,610 deaths.