Dow Drops Over 100 Points; Lowe's Earnings Top Views

U.S. stocks traded lower this morning, with the Dow Jones dropping over 100 points on Tuesday.

Following the market opening Tuesday, the Dow traded down 0.40% to 33,154.99 while the NASDAQ fell 0.32% to 12,679.57. The S&P 500, also fell, dropping, 0.37% to 4,176.92.

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Leading and Lagging Sectors

• Energy shares rose by 0.9% on Tuesday. Meanwhile, top gainers in the sector included AST Navigator Holdings Ltd. NVGS, up 10%, and Aemetis, Inc. AMTX, up 5%.
• In trading on Tuesday, materials shares fell 1.1%.

 

Top Headline

Lowe's Companies Inc LOW reported better-than-expected earnings for its first quarter, but lowered its full-year forecast.

Lowe's reported a first-quarter FY23 sales decline of 5.5% year-on-year to $22.35 billion, beating the analyst consensus estimate of $21.60 billion. Adjusted EPS of $3.67 beat the analyst consensus of $3.44.

Lowe's cut FY23 revenue outlook from $88 billion - $90 billion to $87 billion - $89 billion, against the Street view of $88.57 billion. It also cut FY23 EPS guidance from $13.60 - $14.00 to $13.20 - $13.60 against the consensus of $13.64.

 

Equities Trading UP

• Ocean Biomedical, Inc. OCEA shares shot up 63% to $8.56 after the company announced a patent award for novel cancer immunotherapy treatment, granted for prostate cancer, colon cancer, ovarian cancer, kidney cancer, breast cancer, glioblastoma, melanoma and lung cancer.
• Shares of Icosavax, Inc. ICVX got a boost, shooting 29% to $10.17 after the company announced topline interim Phase 1 results for its bivalent VLP vaccine candidate IVX-A12 against RSV and hMPV in older adults.
• Lifecore Biomedical, Inc. LFCR shares were also up, gaining 18% to $6.30 after the company announced it entered into $150 million in new financing, repaid its outstanding term loans and signed a new supply agreement to expact its HA fermentation capacity with Alcon.

 

Equities Trading DOWN

• Netcapital Inc. NCPL shares dropped 30% to $1.6950 after the company reported a registered direct offering of 1.1 million shares at $1.55 per share.
• Shares of Microvast Holdings, Inc. MVST were down 25% to $1.6599 after the US Energy Department reportedly cancelled contract negotiations for a $200 million award for the company.
• Microbot Medical Inc. MBOT was down, falling 17% to $2.6550. Microbot Medical announced a $1.44 million registered direct offering of 655,569 shares of common stock at a price of $2.20 per share priced at the market under Nasdaq rules.

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Commodities

In commodity news, oil traded up 0.9% to $72.66 while gold traded down 0.8% at $1,960.80.

Silver traded down 2.3% to $23.305 on Tuesday while copper fell 1.4% to $3.6340.

 

Euro zone

European shares were mostly lower today. The eurozone’s STOXX 600 fell 0.3%, London’s FTSE 100 rose 0.2% while Spain’s IBEX 35 Index fell 0.2% The German DAX declined 0.2%, French CAC 40 fell 0.8% and Italy’s FTSE MIB Index fell 0.4%.

The S&P Global/CIPS UK services PMI fell to 55.1 in May from 55.9 in the prior month, while manufacturing PMI declined to 46.9 in May from 47.8. German composite PMI rose to 54.3 in May from 54.2, while French composite PMI fell to 51.4 in May from 52.4 in the prior month.

The HCOB Flash Eurozone services PMI fell to 55.9 in May versus a twelve-month high level of 56.2 in April, while manufacturing PMI declined to 44.6 from 45.8. The current account surplus in the Euro Area increased sharply to EUR 45.0 billion in March, notching the largest surplus since March 2018.

 

Asia Pacific Markets

Asian markets closed mostly lower on Tuesday, with Japan’s Nikkei 225 dropping 0.42%, Hong Kong’s Hang Seng Index falling 1.25% and China’s Shanghai Composite Index dropping 1.52%. India’s S&P BSE Sensex rose 0.1%.

Japan’s services PMI rose to a record high level of 56.3 in May, while manufacturing PMI rose to an eight-month high level of 50.8 in May. The Judo Bank Australian composite PMI declined to 51.2 in May versus 53 a month ago.

 

Economics

Building permits in the US dropped by 1.4% to an annual rate of 1.417 million in April.

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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 107,043,700 cases with around 1,164,350 deaths. India confirmed a total of at least 44,987,330 cases and 531,840 deaths, while France reported over 40,055,540 COVID-19 cases with 167,120 deaths. In total, there were at least 689,063,960 cases of COVID-19 worldwide with more than 6,880,910 deaths.