Dow Tumbles 200 Points; McDonald's Posts Downbeat Earnings

U.S. stocks traded lower this morning, with the Dow Jones index falling more than 200 points on Tuesday.

Following the market opening Tuesday, the Dow traded down 0.59% to 38,159.97 while the NASDAQ fell 0.23% to 15,945.74. The S&P 500 also fell, dropping, 0.23% to 5,104.26.

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Leading and Lagging Sectors

Health care shares rose by 0.5% on Tuesday.

In trading on Tuesday, materials shares fell by 0.7%.

Top Headline

McDonald's Corp MCD reported mixed first-quarter results on Tuesday.

McDonald's reported first-quarter FY24 sales growth of 4.6% year-on-year to $6.17 billion, beating the analyst consensus estimate of $6.155 billion. Adjusted EPS of $2.70 missed the consensus estimate of $2.72.

Equities Trading UP
                       

• Akili, Inc. AKLI shares shot up 64% to $0.3849 after the company announced Shionogi has canceled and forgiven a $5.0 million long-term debt obligation and agreed to make certain payments for SDT-001.
• Shares of AGBA Group Holding Limited AGBA got a boost, surging 61% to $3.78 after the company highlighted plans for its previously-announced merger with Triller.
• Global Mofy Metaverse Limited GMM shares were also up, gaining 58% to $1.4650 after the company’s Gauss AI teamed with Heartdub to develop the Gausspeed generative AI platform.

Equities Trading DOWN

• Lichen China Limited LICN shares dropped 27% to $1.4902.
• Shares of Vince Holding Corp. VNCE were down 24% to $1.6090 after the company posted fourth-quarter results.
• Medifast, Inc. MED was down, falling 22% to $27.71 after the company reported mixed first-quarter financial results.

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Commodities

In commodity news, oil traded up 0.3% to $82.91 while gold traded down 1.4% at $2,324.20.

Silver traded down 2.8% to $26.62 on Tuesday, while copper fell 1.3% to $4.6155.

Euro zone

European shares were mostly lower today. The eurozone's STOXX 600 slipped 0.1%, London's FTSE 100 rose 0.5% while Spain's IBEX 35 Index fell 1.7% The German DAX fell 0.5% French CAC 40 fell 0.2% while Italy's FTSE MIB Index fell 0.5%.

The annual inflation rate in the eurozone remained at 2.4% in April, in line with market estimates, while annual inflation rate in Italy slowed to 0.9% in April from 1.2% in the prior month. The annual inflation rate in France slowed to 2.2% in April from 2.3% in March, while producer prices in France declined 0.2% month-over-month in March. The French economy expanded by 0.2% quarter-over-quarter in the first quarter.

Consumer credit in the UK increased by £1.577 billion in March versus a revised £1.429 billion in the previous month. German economy grew by 0.2% in the first quarter following a 0.5% contraction in the prior period, while jobless rate in Germany remained at 5.9%for the fifth straight month in April. German retail sales rose by 1.8% month-over-month during March.

Asia Pacific Markets

Asian markets closed mixed on Tuesday, with Japan's Nikkei 225 adding 1.24%, Hong Kong's Hang Seng Index gaining 0.09%, China's Shanghai Composite falling 0.26% and India's S&P BSE Sensex falling 0.25%.

Japan’s housing starts fell by 12.8% year-over-year in March following an 8.2% decline in the previous month. Retail sales in Japan climbed 1.2% year-over-year in March, while industrial production in rose 3.8% month-over-month in March.

The Caixin China General Manufacturing PMI rose to 51.4 in April versus 51.1 a month ago, while official NBS Manufacturing PMI declined to 50.4 in April from 50.8 in March.

Economics

• The Chicago Business Barometer fell to 37.9 in April from 41.4 in the previous month.
• The FHFA house price index rose 1.2% in February.
• The S&P CoreLogic Case-Shiller 20-city home price index rose by 7.3% year-over-year in February.
• Compensation costs for civilian workers climbed by 1.2% during the first quarter.

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