Dow Jumps 200 Points Following Fed Decision; Pfizer Earnings Top Estimates

U.S. stocks traded higher toward the end of trading, with the Dow Jones index gaining over 200 points on Wednesday. The Federal Reserve opted to keep the federal funds rate unchanged at 5.25% to 5.5%, as widely expected.

The Dow traded up 0.55% to 38,022.21 while the NASDAQ rose 0.19% to 15,687.08. The S&P 500 also rose, gaining, 0.08% to 5,039.51.

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Leading and Lagging Sectors

Utilities shares rose by 1.2% on Wednesday.

In trading on Wednesday, energy shares fell by 1.6%.

Top Headline

Pfizer Inc. PFE reported better-than-expected first-quarter financial results.

Pfizer reported first-quarter adjusted EPS of 82 cents, down 33% year over year, beating the consensus of 54 cents. The U.S. drugmaker reported sales of $14.9 billion, down 20%, beating the consensus of $14.2 billion.

The company expects adjusted EPS of $2.15-$2.35 in 2024 compared with a prior forecast of $2.05 to $2.25 and the consensus of $2.76.

Equities Trading UP
                       

• CytomX Therapeutics, Inc. CTMX shares shot up 148% to $4.04. The company said it will report first-quarter results and provide an initial CX-904 Phase 1a dose escalation update on May 8 after the close of markets.
• Shares of TransMedics Group, Inc. TMDX got a boost, surging 27% to $119.15 after the company raised its 2024 guidance.
• Rocky Brands, Inc. RCKY shares were also up, gaining 24% to $32.06 after the company reported better-than-expected quarterly financial results.

Equities Trading DOWN

• Cemtrex, Inc. CETX shares dropped 72% to $0.3164 after the company announced pricing of a $10 million upsized underwritten public offering.
• Shares of CVRx, Inc. CVRX were down 35% to $10.02 after the company reported worse-than-expected first-quarter financial results. JP Morgan analyst Robbie Marcus downgraded the stock from Overweight to Neutral and lowered the price target from $36 to $13.
• Leggett & Platt, Incorporated LEG was down, falling 27% to $13.12 after the company reported worse-than-expected first-quarter financial results. The company also reduced its dividend.

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Commodities

In commodity news, oil traded down 3.3% to $79.23 while gold traded up 0.5% at $2,315.00.

Silver traded up 0.4% to $26.755 on Wednesday, while copper fell 0.4% to $4.5470.

Euro zone

European shares were lower today. The eurozone's STOXX 600 slipped 0.11%, while London's FTSE 100 fell 0.28%.

The S&P Global UK manufacturing PMI was revised higher to 49.1 in April from a preliminary reading of 48.7, while Nationwide House Price Index increased 0.6% year-over-year in April.

Asia Pacific Markets

Asian markets closed mostly lower on Wednesday, with Japan's Nikkei 225 falling 0.34%.

Japan's au Jibun Bank manufacturing PMI was revised lower to 49.6 in April compared to preliminary reading of 49.9.

Economics

• U.S. mortgage applications declined by 2.3% from the prior week in the period ending April 26.
• U.S. private employers added 192,000 new jobs during the month of April, compared to a revised 208,000 in March, topping market estimates of a 175,000 gain.
• The S&P Global manufacturing PMI declined to 50 in April versus 51.9 a month ago.
• U.S. construction spending declined by 0.2% from the prior month in March.
• The number of job openings fell by 325,000 from the prior month to 8.488 million in March.
• The ISM manufacturing PMI declined to 49.2 in April from 50.3 a month ago.
• U.S. crude oil inventories rose by 7.265 million barrels in the week ending April 26, compared to a 6.368 million barrel fall in the prior week.

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