Dow Dips Over 100 Points; Bank of America Earnings Beat Estimates

U.S. stocks traded lower midway through trading, with the Dow Jones dropping over 100 points on Tuesday.

The Dow traded down 0.42% to 33,842.93 while the NASDAQ fell 0.10% to 12,146.16. The S&P 500, also fell, dropping, 0.14% to 4,145.37.

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Leading and Lagging Sectors

• Information technology shares rose by 0.4% on Tuesday. Meanwhile, top gainers in the sector included TeraWulf Inc. WULF, up 10%, and CleanSpark, Inc. CLSK, up 13%.
• In trading on Tuesday, health care fell by 0.6%.

Top Headline

Bank of America Corporation BAC reported better-than-expected Q1 results.

Revenue increased 13% Y/Y to $26.3 billion, beating the consensus of $25.13 billion. EPS for the quarter was $0.94, compared to $0.80 in 1Q22, beating the consensus of 0.82.

Equities Trading UP

• BELLUS Health Inc. BLU shares shot up 99% to $14.41 after GSK announced it will acquire the company for $14.75 per share in cash, representing an approximate total equity value of $2 billion.
• Shares of SAB Biotherapeutics, Inc. SABS got a boost, shooting 64% to $1.26. The FDA granted Breakthrough Therapy Designation (BTD) to SAB Biotherapeutics SAB-176, an investigational therapy for post-exposure prophylaxis for Type A and Type B influenza illness in high-risk patients, including antiviral resistant strains.
• Glory Star New Media Group Holdings Limited GSMG shares were also up, gaining 60% to $0.77 after the company announced the signing of a $60 million strategic investment with two institutional investors at $2.48 per share.

Equities Trading DOWN

• China Jo-Jo Drugstores, Inc. CJJD shares dropped 72% to $1.32 after the company announced a $7 million registered direct offering.
• Shares of Digital Brands Group, Inc. DBGI were down 16% to $1.2411 following Q4 results. Digital Brands Group posted a Q4 loss of $20.46 per share..
• Telefonaktiebolaget LM Ericsson ERIC was down, falling 7% to $5.49 after the company reported Q1 financial results. The company also announced CFO Carl Mellander will step down at the end of the Q1 2024.

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Commodities

In commodity news, oil traded up 0.1% to $80.89 while gold traded up 0.8% at $2,022.70.

Silver traded up 1% to $25.335 on Tuesday while copper rose 0.6% to $4.0915.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 gained 0.33%, London’s FTSE 100 rose 0.3% while Spain’s IBEX 35 Index rose 0.49%. The German DAX rose 0.47%, French CAC 40 rose 0.48% and Italy’s FTSE MIB Index gained 0.61%.

The ZEW Indicator of Economic Sentiment for the Eurozone declined by 3.6 points to 6.4 in April, while ZEW Indicator of Economic Sentiment for Germany fell for a second month to a reading of 4.1 in April. Italy recorded a trade surplus of EUR 2.1 billion in February, versus a year-ago gap of EUR 1.5 billion.

The unemployment rate in the UK rose by 0.1 percentage points on the quarter to 3.8% in December to February, while average weekly earnings, including bonuses, climbed 5.9% year-over-year to GBP 638 during the three months to February.

Asia Pacific Markets

Asian markets closed mixed on Tuesday, with Japan’s Nikkei 225 gaining 0.51%, Hong Kong’s Hang Seng Index falling 0.63% and China’s Shanghai Composite Index gaining 0.23%. India’s S&P BSE Sensex dropped 0.3%.

Chinese retail sales rose by 10.6% from the previous year in March, while the country’s economy expanded by 2.2% during the three months to March. China's industrial production rose by 3.9% year-over-year in March.

Economics

Housing starts in the US fell 0.8% month-over-month to an annualized rate of 1.42 million in March, while building permits dipped 8.8% to an annual rate of 1.413 million.

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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 106,475,030 cases with around 1,158,250 deaths. India confirmed a total of at least 44,834,850 cases and 531,150 deaths, while France reported over 39,903,410 COVID-19 cases with 166,020 deaths. In total, there were at least 685,740,980 cases of COVID-19 worldwide with more than 6,842,940 deaths.