US Stocks Edge Lower; Tyson Foods Posts Q2 Loss

U.S. stocks traded slightly lower this morning, with the Dow Jones dropping around 40 points on Monday.

Following the market opening Monday, the Dow traded down 0.12% to 33,635.06 while the NASDAQ fell 0.35% to 12,191.99. The S&P 500, also fell, dropping, 0.11% to 4,131.81.

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Leading and Lagging Sectors

• Energy shares jumped by 1.1% on Monday. Meanwhile, top gainers in the sector included Enviva Inc. EVA, up 19%, and Delek US Holdings, Inc. DK, up 7%.
• In trading on Monday, information technology shares fell 0.5%.

Top Headline

Tyson Foods, Inc. TSN reported a loss for the second quarter and cut its FY23 financial outlook.

Tyson reported second-quarter FY23 sales growth of 0.12% year-on-year to $13.13 billion, missing the consensus of $13.62 billion. Adjusted EPS of $(0.04) missed the analyst consensus of $0.80.

Tyson Foods cut its FY23 revenue outlook to $53 billion - $54 billion (previously $55 billion - $57 billion) versus the consensus of $55.04 billion.

Equities Trading UP

• EZFill Holdings Inc. EZFL shares shot up 28% to $2.84.
• Shares of U.S. GoldMining Inc. USGO got a boost, shooting 29% to $13.33.
• Innodata Inc. INOD shares were also up, gaining 23% to $7.55. Innodata is expected to report Q1 results on May 11, 2023.

Equities Trading DOWN

• Catalent, Inc. CTLT shares dropped 25% to $35.80 after the company announced it will be delaying the release of its Q3 results. The company said it expects to significantly reduce both its FY23 net revenue and adjusted EBITDA guidance by more than $400 million each.
• Shares of LL Flooring Holdings, Inc. LL were down 17% to $2.96 after the company reported weaker-than-expected quarterly results.
• Tyson Foods, Inc. TSN was down, falling 13% to $53.10 as its second-quarter results missed Street expectations. The company also reduced its FY23 sales outlook.

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Commodities

In commodity news, oil traded up 2.3% to $72.99 while gold traded up 0.3% at $2,031.30.

Silver traded down 0.1% to $25.915 on Monday while copper rose 1% to $3.9220.

Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.2%, London’s FTSE 100 rose 1% while Spain’s IBEX 35 Index rose 0.6% The German DAX fell 0.1%, French CAC 40 rose 0.1% and Italy’s FTSE MIB Index gained 0.2%.

Industrial production in Germany fell 3.4% month-over-month in March following a revised 2.1% increase in February.

Asia Pacific Markets

Asian markets closed mostly higher on Monday, with Japan’s Nikkei 225 dropping 0.71%, Hong Kong’s Hang Seng Index gaining 1.24% and China’s Shanghai Composite Index climbing 1.81%. India’s S&P BSE Sensex rose 1.2%.

The au Jibun Bank Japan services PMI was revised higher to 55.4 in April versus a flash reading of 55.0, while composite PMI rose to 52.9 in April versus a flash reading of 52.5. Chinese foreign exchange reserves increased to $3.205 trillion at the end of April 2023, compared to $3.184 trillion in the previous month.

Economics

U.S. wholesale inventories came in flat for March, versus market expectations for a 0.1% increase.

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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 106,768,290 cases with around 1,162,430 deaths. India confirmed a total of at least 44,971,460 cases and 531,690 deaths, while France reported over 40,021,190 COVID-19 cases with 166,810 deaths. In total, there were at least 687,819,180 cases of COVID-19 worldwide with more than 6,871,100 deaths.