Why U.S. Stocks Are Trading Lower; Tesla Shares Drop After Price Target Cut At JPMorgan

U.S. stocks traded sharply lower this morning, after the major indices closed another losing week. The Dow Jones gained around 200 points on Friday.

Following the market opening Tuesday, the Dow traded down 1.93% to 30,498.06 while the NASDAQ fell 1.11% to 11,004.09. The S&P also fell, dropping, 1.85% to 3,754.60.

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Leading and Lagging Sectors

Information technology shares fell by just 1.1% on Tuesday. Meanwhile, top gainers in the sector included OneConnect Financial Technology Co., Ltd. OCFT, up 9% and Avaya Holdings Corp. AVYA up 11%.

In trading on Tuesday, materials shares dipped by 3.6%.

Top Headline

JPMorgan analyst Ryan Brinkman maintained Tesla Inc TSLA with an Underweight rating and lowered the price target from $395 to $385, citing weaker-than-expected deliveries.

Tesla shares dropped 3.7% to trade at $656.37 on Tuesday.

 

Equities Trading UP

Rubicon Technology, Inc. RBCN shares shot up 63% to $14.75 after the company announced that it entered into a definitive stock purchase and sale agreement with Janel Corporation.

Shares of Alpha Tau Medical Ltd. DRTS got a boost, shooting 33% to $10.08 after dropping 16% on Friday.

Cowen Inc. COWN shares were also up, gaining 22% to $29.24.

Equities Trading DOWN

Kalera Public Limited Company KAL shares tumbled 26% to $2.6850 after tumbling 39% on Friday.

Shares of Usio, Inc. USIO were down 25% to $1.80. Usio’s CEO provided a business update today.

Anebulo Pharmaceuticals, Inc. ANEB was down, falling 15% to $4.57. Anebulo Pharmaceuticals announced positive topline data from Part A of an ongoing Phase 2 clinical trial of its drug candidate ANEB-001 for patients with acute cannabinoid intoxication (ACI).

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Commodities

In commodity news, oil traded down 4.3% to $103.75, while gold traded down 1.5% to $1,774.50.

Silver traded down 1.8% to $19.31 on Tuesday while copper fell 4.6% to $3.4395.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 1.7%, London’s FTSE 100 fell 2.5% while Spain’s IBEX 35 Index fell 1.9%. The German DAX dropped 2.2%, French CAC 40 fell 2.3% and Italy’s FTSE MIB Index fell 2.1%.

The S&P Global/CIPS UK services PMI was revised higher to 54.3 in June versus a preliminary reading of 53.4, while new car registrations declined 24.3% year-over-year to 140,958 units in June.

The S&P Global Eurozone services PMI was revised higher to 53 in June compared to a preliminary level of 52.8, while German services PMI was confirmed at 52.4 in June. The S&P Global Spain services PMI declined to 54 in June from 56.5 in May, while French services PMI dropped to 53.9 in June from 58.3 in May.

Economics

U.S. factory orders surged 1.6% month-over-month in May, following a revised 0.7% increase in April.

The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.

The Investor Movement Index for June is scheduled for release at 12:30 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 89,567,320 cases with around 1,043,370 deaths. India confirmed a total of at least 43,532,780 cases and 525,240 deaths, while Brazil reported over 32,536,300 COVID-19 cases with 672,100 deaths. In total, there were at least 552,339,000 cases of COVID-19 worldwide with more than 6,362,670 deaths.