Mid-Morning Market Update: Markets Open Lower; U.S. Producer Prices Rise 0.5% In April

U.S. stocks traded lower this morning, with the Dow Jones dropping more than 200 points on Thursday.

Following the market opening Thursday, the Dow traded down 0.75% to 31,596.05 while the NASDAQ fell 0.94% to 11,257.85. The S&P also fell, dropping, 1% to 3,895.68.

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Leading and Lagging Sectors

Consumer staples shares rose by 0.3% on Thursday. Meanwhile, top gainers in the sector included SunOpta Inc. STKL, up 20% and Herbalife Nutrition Ltd. HLF up 10%.

In trading on Thursday, energy shares dipped 2.8%.

Top Headline

U.S. producer prices rose 0.5% month-over-month in April following a revised 1.6% increase in March.

 

Equities Trading UP

AppLovin Corporation APP shares shot up 42% to $38.69 after the company reported better-than-expected Q1 sales results and announced a $750 million share buyback.

Shares of Squarespace, Inc. SQSP got a boost, shooting 31% to $18.87 after the company reported better-than-expected Q1 sales results and issued Q2 and FY22 sales guidance above analyst estimates. The company also announced a buyback program of up to $200 million.

Bumble Inc. BMBL shares were also up, gaining 29% to $22.81 after the company reported better-than-expected Q1 results.

Equities Trading DOWN

Dutch Bros Inc. BROS shares tumbled 32% to $23.36 after the company reported worse-than-expected Q1 EPS results and issued FY22 revenue guidance below analyst estimates.

Shares of Tenon Medical, Inc. TNON were down 29% to $25.92.

iMedia Brands, Inc. IMBI was down, falling 29% to $2.10 after the company announced pricing of $24 million registered direct offering.

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Commodities

In commodity news, oil traded down 0.2% to $105.53, while gold traded down 0.9% to $1,837.20.

Silver traded down 3.2% to $20.88 on Thursday while copper fell 3.6% to $4.0560.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 1.6%, London’s FTSE 100 dipped 2% and Spain’s IBEX 35 Index fell 1.9%. The German DAX dropped 1.6%, French CAC 40 fell 1.9% and Italy’s FTSE MIB Index declined 1.5%.

The British economy grew 8.7% year-over-year in the first quarter, compared to 6.6% growth in the previous quarter. Construction output in the UK increased by 4.7% year-over-year in March, while industrial production eased 0.2% from a month ago in March. The UK trade deficit widened to GBP 11.5 billion in March from a revised GBP 9.2 billion gap in the prior month.

Economics

U.S. initial jobless claims rose by 1 thousand to 203 thousand in the week ended May 7th, versus a revised 202 thousand in the prior period.

Producer prices rose 0.5% month-over-month in April following a revised 1.6% increase in March.

The Energy Information Administration’s weekly report on natural gas stocks in underground storage will be released at 10:30 a.m. ET.

The Treasury is set to auction 4-and 8-week bills at 11:30 a.m. ET.

The Treasury will auction 30-year bonds at 1:00 p.m. ET.

Federal Reserve Bank of San Francisco President Mary Daly will speak at 4:00 p.m. ET.

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COVID-19 Update

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 83,953,370 cases with around 1,025,760 deaths. India confirmed a total of at least 43,113,410 cases and 524,180 deaths, while Brazil reported over 30,617,780 COVID-19 cases with 664,560 deaths. In total, there were at least 519,244,720 cases of COVID-19 worldwide with more than 6,282,530 deaths.