Dow Surges 100 Points; US Inflation Rate Drops In May

U.S. stocks traded higher this morning, with Dow Jones gaining over 100 points on Tuesday.

Following the market opening Tuesday, the Dow traded up 0.32% to 34,173.85 while the NASDAQ rose 0.72% to 13,559.01. The S&P 500, also rose, gaining, 0.49% to 4,360.39.

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Leading and Lagging Sectors

• Energy shares jumped by 1.5% on Tuesday. Meanwhile, top gainers in the sector included Nine Energy Service, Inc. NINE, up 9%, and ProFrac Holding Corp. ACDC, up 7%.
• In trading on Tuesday, utilities shares fell by 0.3%.

Top Headline

The consumer price inflation in the U.S. eased to 4.0% in May, recording the lowest level since March 2021 and compared to market estimates of 4.1%. On a monthly basis, consumer prices rose 0.1% in May after increasing 0.4% in the previous month.

Equities Trading UP

• IperionX Limited IPX shares shot up 74% to $11.44. IperionX agreed a Scope of Work for the supply of titanium metal components for Ford Motor Company using IperionX's unique 100% recycled, low-carbon titanium metal.
• Shares of Allego N.V. ALLG got a boost, shooting 20% to $3.37.
• Motorcar Parts of America, Inc. MPAA shares were also up, gaining 14% to $6.02 after reporting a profit for the fourth quarter.

Equities Trading DOWN

• Biora Therapeutics, Inc. BIOR shares dropped 21% to $4.91. Biora Therapeutics reported an $8 million registered direct offering priced at-the-market under Nasdaq rules.
• Shares of Advanced Health Intelligence Ltd. AHI were down 20% to $1.9102. Advanced Health Intelligence said it will undertake AUD$5 million private placement.
• Methode Electronics, Inc. MEI was down, falling 17% to $37.31 after the company reported worse-than-expected preliminary fourth-quarter results. The company's outlook for FY24 lagged consensus.

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Commodities

In commodity news, oil traded up 3% to $69.16 while gold traded up 0.4% at $1,978.30.

Silver traded up 0.8% to $24.26 on Tuesday while copper rose 2.4% to $3.8410.

Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.4%, London’s FTSE 100 rose 0.3% while Spain’s IBEX 35 Index fell 0.4% The German DAX gained 0.5% French CAC 40 rose 0.5% and Italy’s FTSE MIB Index rose 0.5%.

Spanish annual consumer price inflation fell to 3.2% in May from 4.1% in the previous month, while annual inflation rate in Germany fell to a 14-month low level of 6.1% in May.

Average weekly earnings, including bonuses in the UK, increased by 6.5% year-over-year to GBP 648 during the three months to April, while number of people in work rose by 250 thousand during the period. The unemployment rate in the UK rose 0.1 percentage points on the quarter to 3.8% during February to April.

Asia Pacific Markets

Asian markets closed mostly higher on Tuesday, with Japan’s Nikkei 225 gaining 1.8%, Hong Kong’s Hang Seng Index gaining 0.6% and China’s Shanghai Composite Index gaining 0.15%. India’s S&P BSE Sensex rose 0.5%.

China's total social financing increased to CNY 1.56 trillion in May from CNY 1.22 trillion in the prior month. The business survey index of large manufacturing firms in Japan improved to -0.4% for the second quarter versus -10.5% in the prior quarter.

Economics

• The NFIB Small Business Optimism Index rose to 89.4 in May from 89.0 in the previous month.
• The consumer price inflation in the U.S. eased to 4.0% in May, recording the lowest level since March 2021 and compared to market estimates of 4.1%. On a monthly basis, consumer prices rose 0.1% in May after increasing 0.4% in the previous month.

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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 107,188,880 cases with around 1,166,710 deaths. India confirmed a total of at least 44,992,780 cases and 531,890 deaths, while France reported over 40,113,910 COVID-19 cases with 167,480 deaths. In total, there were at least 690,295,150 cases of COVID-19 worldwide with more than 6,890,590 deaths.