Dow Surges Over 500 Points; Western Digital Announces Plan To Split Into Two Companies

U.S. stocks traded higher toward the end of trading, with the Dow Jones index gaining more than 500 points on Monday.

The Dow traded up 1.67% to 32,959.68 while the NASDAQ rose 1.25% to 12,800.95. The S&P 500 also rose, gaining, 1.23% to 4,167.91.

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Leading and Lagging Sectors

 

Communication services shares jumped by 2.3% on Monday.

In trading on Monday, energy shares fell by 0.1%.

 

Top Headline

 

Western Digital Corp WDC reported upbeat first-quarter results and announced a plan to separate its HDD and Flash businesses.

Western Digital reported a first-quarter FY23 revenue decline of 26% year-on-year to $2.75 billion, beating the consensus of $2.65 billion. The company clocked an adjusted EPS loss of $(1.76), beating the consensus loss of $(1.90).

The company’s board unanimously approved a plan to separate its HDD and Flash businesses.

 

Equities Trading UP

 

Miromatrix Medical Inc. MIRO shares shot up 225% to $3.2858 after United Therapeutics agreed to acquire the company for $3.25 per share in cash.

Shares of VYNE Therapeutics Inc. VYNE got a boost, shooting 25% to $2.81 after the company announced a private placement of $88 million and data from its Phase 1b trial evaluating once-daily dosing of VYN201 in patients with nonsegmental vitiligo.

Eargo, Inc. EAR shares were also up, gaining 52% to $2.56 after the company announced it will be taken private by Patient Square Capital.

 

Equities Trading DOWN

 

CommScope Holding Company, Inc. COMM shares dropped 41% to $1.4250 after the company reported preliminary third-quarter financial results.

Shares of Alzamend Neuro, Inc. ALZN were down 21% to $0.1369 after the company announced a reverse stock split.

LumiraDx Limited LMDX was down, falling 29% to $0.0855. On Oct. 24, LumiraDx announced receipt of Nasdaq delisting determination.

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Commodities

 

In commodity news, oil traded down 3.6% to $82.43 while gold traded up 0.5% at $2,008.60.

Silver traded up 2.6% to $23.475 on Monday while copper rose 0.2% to $3.6540.

 

Euro zone

 

European shares closed higher today. The eurozone’s STOXX 600 gained 0.36%, London’s FTSE 100 rose 0.50% while Spain’s IBEX 35 Index climbed 1.07% The German DAX gained 0.20% French CAC 40 climbed 0.44%, while Italy’s FTSE MIB Index jumped 0.19%.

The German economy shrank by 0.1% in the third quarter compared to the revised 0.1% growth recorded in the prior three-month period. Spain's consumer price inflation rate came in unchanged at 3.5% for October. Consumer credit in the UK increased by £1.391 billion in September slowing from the revised £1.681 billion in the prior month.

 

Asia Pacific Markets

 

Asian markets closed mixed on Monday, with Japan’s Nikkei 225 falling 0.95%, Hong Kong’s Hang Seng Index gaining 0.04% and China’s Shanghai Composite Index gaining 0.12%. India’s S&P BSE Sensex, meanwhile, gained around 0.5%.

Retail sales in Australia increased by 0.9% month-over-month in September versus a revised 0.3% rise in August.

 

Economics

 

The Dallas Fed Texas manufacturing output index fell to 5.2 in October from 7.9 in September.

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