Dow Surges More Than 300 Points After Producer Prices Increase Less Than Expected

U.S. stocks traded higher this morning, with the Dow Jones gaining more than 300 points on Tuesday.

Following the market opening Tuesday, the Dow traded up 0.91% to 33,841.32 while the NASDAQ rose 2.05% to 11,425.38. The S&P 500 also rose, gaining, 1.45% to 4,014.65.

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Leading and Lagging Sectors

Communication services shares jumped 2.3% on Tuesday. Leading the sector was strength from Sea Limited SE and TrueCar, Inc. TRUE.

In trading on Tuesday, energy shares rose by just 0.5%.

Top Headline

 

The Producer Price Index for final demand increased 0.2% month-over-month in October, compared to a revised 0.2% rise in the previous month. Analysts, meanwhile, were expecting for a 0.4% increase.

 

Equities Trading UP

 

• Pineapple Energy Inc. PEGY shares shot up 48% to $3.48 after the company reported Q3 financial results.
• Shares of 4D Molecular Therapeutics, Inc. FDMT got a boost, shooting 31% to $17.72  after Goldman Sachs upgraded the stock from Neutral to Buy and announced a $68 price target.
• Sea Limited SE shares were also up, gaining 27% to $58.11 after the company reported better-than-expected Q3 results.

 

Equities Trading DOWN

• AMMO, Inc. POWW shares tumbled 27% to $2.2888 after the company reported worse-than-expected Q2 sales and issued FY23 guidance below estimates.
• Shares of Clearmind Medicine Inc. CMND were down 26% to $5.88.
• Daxor Corporation DXR was down, falling 17% to $9.35 after the company announced pricing of a $2 million underwritten public offering.

 

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Commodities

In commodity news, oil traded down 1.2% to $84.82 while gold traded down 0.1% at $1,774.40.

Silver traded down 1.3% to $21.825 on Tuesday while copper fell 0.6% to $3.8115.

Euro zone

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

The ZEW Indicator of Economic Sentiment for the Eurozone rose to -38.7 in November from – 59.7 in the previous month. The Eurozone recorded a trade deficit of EUR 34.4 billion in September, its third highest on record. The Eurozone economy grew by 0.2% on quarter during the three months to September.

The ZEW Indicator of Economic Sentiment for Germany climbed by 22.5 points to a reading of -36.7 in November. The annual inflation rate in France accelerated to 6.2% in October from 5.6% gain in September, while annual inflation rate in Spain declined to 7.3% in October. Wholesale price inflation in Germany fell to 17.4% in October versus a 19.9% increase in September. The unemployment rate in the UK rose to 3.6% during the three months to September, while unemployment rate in France fell to 7.3% in the third quarter.

 

Asia Pacific Markets

Asian markets closed higher on Tuesday, with the Japan’s Nikkei gaining 0.10% and Hong Kong’s Hang Seng Index gaining 4.1%. China’s Shanghai Composite Index gained 1.64%.

Indian trade deficit increased to $26.91 billion in October from $25.71 billion in the prior month. Industrial production in Japan fell by 1.7% month-over-month during September, while the country’s economy contracted 1.2% on an annualized basis in the third quarter. China's retail trade fell by 0.5% year-over-year in October, while industrial production rose 5.0% year-over-year in October.

Economics

 

• The Producer Price Index for final demand increased 0.2% month-over-month in October, compared to a revised 0.2% rise in the previous month. Analysts, meanwhile, were expecting for a 0.4% increase.
• The NY Empire State Manufacturing Index rose 13.6 points to 4.5 in November versus market estimates of -5.0.

 

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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 99,935,040 cases with around 1,100,290 deaths. India confirmed a total of at least 44,667,250 cases and 530,530 deaths, while France reported over 37,133,190 COVID-19 cases with 157,820 deaths. In total, there were at least 640,785,630 cases of COVID-19 worldwide with more than 6,616,830 deaths.