US Stocks Down; Chegg Crashes After Removing Guidance On ChatGPT Concerns

U.S. stocks traded lower this morning even as the Federal Reserve’s two-day meeting began.

Following the market opening Tuesday, the Dow traded down 0.47% to 33,891.31 while the NASDAQ fell 0.12% to 12,197.84. The S&P 500 also declined, losing 0.37% to 4,152.34.

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Leading and Lagging Sectors

Health care shares jumped by 0.34% on Tuesday. Meanwhile, top gainers in the sector included Immatics N.V. IMTX, up 30.60% and SI-BONE, Inc. SIBN up 9.69%.

In trading on Tuesday, financials shares fell 0.94%.

Top Headline

Uber Technologies, Inc. UBER reported results for its first quarter in-line with expectations.

Uber’s gross bookings met Street expectations at $31.4 billion, representing a 19% year-over-year jump. The company’s Mobility business rose 40% year-over year to $14.9 billion compared to expectations of $14.8 billion.

Equities Trading UP

• Immatics N.V. IMTX shares shot up 14.1% to $8.35 after the company reported interim clinical data from its ongoing Phase 1b Cohort A monotherapy with ACTengine IMA203 TCR-T targeting PRAME.
• Shares of VSE Corporation VSEC got a boost, shooting 21.81% to $52.36. RBC Capital upgraded the stock to Outperform, while raising the price target to $55.
• Terex Corporation TEX shares were also up, gaining 3.81% to $47.75 after the company reported higher-than-expected first quarter earnings and revenue.

Equities Trading DOWN

• Chegg, Inc. CHGG shares tumbled 47.2% to $9.30 after the company removed its full-year guidance and reported a decline in subscribers due to ChatGPT impact.
• Shares of Community Health Systems, Inc. CYH were down 40.1% to $3.73 after the company reported a higher-than-anticipated quarterly loss of 43 cents per share, although revenues of $3.11 billion beat expectations.
• Colliers International Group Inc. CIGI was down, falling 9.98% to $94.79 after the company reported worse-than-expected Q1 EPS and sales results.

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Commodities

In commodity news, oil traded down 3.62% to $72.92, while gold traded up 058% to $2003.70.

Silver traded down 0.69% Tuesday to $25.055 while copper fell 1.54% to $3.8735.

Euro zone

European shares traded down today. The eurozone’s STOXX 600 fell 0.85%, London’s FTSE 100 declined 0.80%, while Spain’s IBEX 35 Index dropped 1.15%. The German DAX was down 0.77%, French CAC 40 fell 1.17% and Italy’s FTSE MIB Index declined 0.84%.

Consumer price inflation rate in the Euro Area rose slightly to 7% in April 2023, after a 13-month low of 6.9% in March.

Economics

US Redbook Index rose 1.30% in the week ending April 29, 2023, compared to the same week in 2022.

The number of job openings in the U.S. dropped to 9.6 million in March 2023, the lowest since April 2021 and below market expectations of 9.775 million.