Mid-Afternoon Market Update: U.S. Stocks Extend Losses; Dow Dips 750 Points

U.S. stocks extended losses toward the end of trading, with the Dow Jones tumbling 750 points on Tuesday.

The Dow traded down 2.22% to 33,139.00 while the NASDAQ fell 1.66% to 13,522.95 The S&P also fell, dropping, 1.87% to 4,292.07.

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Leading and Lagging Sectors

Energy shares climbed by 0.2% on Tuesday. Meanwhile, top gainers in the sector included New Fortress Energy Inc. NFE, up 16% and BP Prudhoe Bay Royalty Trust BPT up 14%.

In trading on Tuesday, materials shares fell by 2.6%.

Top Headline

Target Corporation TGT reported better-than-expected earnings for its fourth quarter, while sales missed estimates.

Target posted quarterly earnings of $3.19 per share, beating analysts’ estimates of $2.86 per share. The company’s quarterly sales came in at 31.00 billion, missing expectations of $31.41 billion.

Target said it sees low-to-mid single digit revenue growth for 2022.

Equities Trading UP

iQIYI, Inc. IQ shares shot up 23% to $5.07 after the company reported fourth-quarter FY21 revenue of $1.2 billion, flat year-on-year, beating the consensus of $1.15 billion.

Shares of Oak Street Health, Inc. OSH got a boost, shooting 28% to $22.43. Oak Street reported FY21 revenue of $1.43 billion.

UserTesting, Inc. USER shares were also up, gaining 27% to $10.60 after the company reported better-than-expected Q4 EPS and sales results. The company also issued Q1 and FY22 EPS and sales guidance above analysts’ estimates.

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Equities Trading DOWN

GoodRx Holdings, Inc. GDRX shares tumbled 38% to $16.97 after the company reported worse-than-expected Q4 EPS and sales results and issued Q1 sales guidance below estimates.

Shares of Vroom, Inc. VRM were down 42% to $3.50 after the company reported worse-than-expected Q4 EPS results.

Ambarella, Inc. AMBA was down, falling 32% to $95.50 after the company reported Q4 earnings results and issued guidance.

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Commodities

In commodity news, oil traded up 8.7% to $104.09, while gold traded up 2.2% to $1,942.70

Silver traded up 4.6% Tuesday to $25.495 while copper rose 3.1% to $4.5935.

Euro zone

European shares closed lower today. The eurozone’s STOXX 600 dropped 2.37%, London’s FTSE 100 fell 1.72%, while Spain’s IBEX 35 Index fell 3.43%. The German DAX declined 3.85%, French CAC 40 dipped 3.94% and Italy’s FTSE MIB Index dipped 4.14%.

The IHS Markit Eurozone manufacturing PMI was revised lower to 58.2 in February versus an initial reading of 58.4. Spain’s current account balance swung to a deficit of EUR 1.31 billion in December versus a year-ago surplus of EUR 0.92 billion. Spain's annual inflation rate increased to 7.4% in February from 6.1% in January.

German manufacturing PMI was revised lower to 58.4 in February versus a preliminary reading of 58.5, while Italy manufacturing PMI remained at 58.3 in February. The IHS Markit French manufacturing PMI climbed to 57.2 in February, while Spain’s manufacturing PMI climbed to a three-month high of 56.9 in February.

Economics

The IHS Markit manufacturing PMI was revised lower to 57.3 in February versus a preliminary reading of 57.5.

The ISM manufacturing PMI climbed for a second straight month to 58.6 in February from 57.6 in January.

Construction spending increased 1.3% to an annual rate of $1.677 trillion in January.

Check out the full economic calendar here

COVID-19 Update

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 80,647,340 cases with around 975,150 deaths. India confirmed a total of at least 42,931,040 cases and 514,050 deaths, while Brazil reported over 28,787,620 COVID-19 cases with 649,440 deaths. In total, there were at least 437,587,420 cases of COVID-19 worldwide with more than 5,977,300 deaths.