Dow Tumbles 300 Points; Tesla Shares Plunge After Q2 Results

U.S. stocks traded lower midway through trading, with the Nasdaq Composite dipping more than 500 points on Wednesday.

The Dow traded down 0.76% to 40,052.02 while the NASDAQ fell 2.89% to 17,476.46. The S&P 500 also fell, dropping, 1.75% to 5,458.52.

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Leading and Lagging Sectors

Utilities shares jumped by 0.8% on Wednesday.

In trading on Wednesday, consumer discretionary shares fell by 3%.

Top Headline

Tesla Inc TSLA shares dipped more than 11% on Wednesday on the heels of the company's second-quarter financial results. The EV maker noted that it expects 2024 vehicle volume growth to be lower than in 2023.

Tesla said second-quarter revenue increased 2% year-over-year to $25.5 billion, beating the consensus estimate of $24.73 billion, according to estimates from Benzinga Pro. The company reported adjusted earnings of 52 cents per share, missing analyst estimates of 62 cents per share.

Equities Trading UP
                       

• Pieris Pharmaceuticals, Inc. PIRS shares shot up 79% to $14.20 after the company announced that the company entered into a definitive merger agreement with Palvella Therapeutics.
• Shares of Sangamo Therapeutics, Inc. SGMO got a boost, surging 33% to $0.5345 after licensing partner Pfizer’s Phase 3 AFFINE trial evaluating giroctocogene fitelparvovec met its primary endpoint.
• PROG Holdings, Inc. PRG shares were also up, gaining 21% to $41.89 after the company reported better-than-expected second-quarter financial results. Also, the company raised its FY24 guidance above estimates.

Equities Trading DOWN

• Azitra, Inc. AZTR shares dropped 75% to $1.2550 after the company announced the pricing of a $10 million public offering of 6,665,000 common shares and Class A warrants at $1.50 per share.
• Shares of Nuwellis, Inc. NUWE were down 37% to $2.61 after the company announced the pricing of a $2 million public offering of 469,340 common shares at $4.24 a share.
• Lamb Weston Holdings, Inc. LW was down, falling 27% to $57.76 after the company reported worse-than-expected quarterly financial results. Also, the company issued its FY25 EPS guidance below estimates.

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Commodities

In commodity news, oil traded up 0.1% to $77.07 while gold traded up 0.9% at $2,428.50.

Silver traded up 0.7% to $29.525 on Wednesday, while copper fell 0.6% to $4.1350.

Euro zone

European shares were mostly lower today. The eurozone's STOXX 600 fell 0.52%, Germany's DAX fell 0.83% and France's CAC 40 fell 0.99%. Spain's IBEX 35 Index rose 0.02%, while London's FTSE 100 fell 0.07%.

The HCOB Eurozone manufacturing PMI declined to 45.6 in July from 45.8 in June, while services PMI slipped to 51.9 from 52.8. The HCOB France composite PMI climbed to 49.5 in July from 48.8 in the prior month, while German composite PMI declined to 48.7 from 50.4.

The S&P Global Flash UK manufacturing PMI rose to 51.8 in July from 50.9 in June, while services PMI rose to 52.4 in July from 52.1 in the previous month.

Asia Pacific Markets

Asian markets closed lower on Wednesday, with Japan's Nikkei 225 falling 1.11%, Hong Kong's Hang Seng Index falling 0.91%, China's Shanghai Composite Index declining 0.46% and India's S&P BSE Sensex declining 0.35%.

The HSBC India Manufacturing PMI climbed to 58.5 in July from 58.3 the prior month, while services PMI rose to 61.1 in July from 60.5. The au Jibun Bank Flash Japan composite PMI rose to 52.6 in July versus a final reading of 49.7 in June.

Economics

• U.S. mortgage applications declined by 2.2% in the latest week, compared to a 3.9% gain in the prior period.
• The S&P Global flash manufacturing PMI fell to 49.5 in July from 51.6 in June and compared to market estimates of 51.7.
• The S&P Global composite PMI climbed to 55.0 in July from 54.8 in the prior month.
• The U.S. trade deficit in goods shrank to $96.84 billion in June versus a $99.37 billion gap in the earlier month.
• Building permits increased by 3.9% to an annual rate of 1.454 million in June.
• U.S. new home sales declined 0.6% month-over-month to an annualized rate of 617,000 in June.
• The EIA said crude oil inventories in the U.S. declined by 3.741 million barrels in the week ended July 19, compared to market estimates of a 2.05 million decline.

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