Crude Oil Moves Higher; UPS Cuts FY23 Guidance

U.S. stocks traded lower toward the end of trading, with the Dow Jones falling over 200 points on Tuesday.

The Dow traded down 0.64% to 35,246.87 while the NASDAQ fell 0.98% to 13,857.43. The S&P 500, also fell, dropping, 0.65% to 4,489.12.

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Leading and Lagging Sectors

• Health care shares jumped by 0.3% on Tuesday.
• In trading on Tuesday, financial shares fell 1.3%.

 

Top Headline

United Parcel Service Inc UPS reported mixed second-quarter financial results and issued FY23 revenue guidance below estimates.

United Parcel Service reported a second-quarter FY23 revenue decline of 10.9% year-over-year to $22.055 billion, missing the consensus of $23.11 billion. Adjusted EPS was $2.54, compared to $3.29, beating the consensus of $2.50.

For FY23, UPS now expects consolidated revenue to be about $93 billion (prior $97 billion) Vs. consensus of $96.77 billion and an adjusted operating margin of around 11.8% (prior 12.8%).

 

Equities Trading UP

• Nuburu, Inc. BURU shares shot up 38% to $14.31 after the company announced contract with NASA to demonstrate feasibility of power beaming in space using the company’s blue laser technology.
• Shares of Paymentus Holdings, Inc. PAY got a boost, shooting 34% to $14.31 after the company reported better-than-expected second-quarter financial results.
• Bright Minds Biosciences Inc. DRUG shares were also up, gaining 36% to $4.37 after the company disclosed data for BMB-101.

 

Equities Trading DOWN

• Proterra Inc. PTRA shares dropped 86% to $0.2055 after the company announced it filed for Chapter 11 bankruptcy.
• Shares of SeaChange International, Inc. SEAC were down 39% to $4.79 after the company announced voluntary SEC deregistration and Nasdaq delisting.
• Datasea Inc. DTSS was down, falling 38% to $0.7080. Datasea said on August 1 that it entered into two separate subscription agreements with a certain non-U.S. investor to sell an aggregate of 4.8 million shares of common stock at $1.20 per share.

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Commodities

In commodity news, oil traded up 0.8% to $82.58 while gold traded down 0.5% at $1,960.10.

Silver traded down 1.8% to $22.82 on Tuesday while copper fell 1.6% to $3.7725.

 

Euro zone

European shares closed lower today. The eurozone’s STOXX 600 fell 0.23%, London’s FTSE 100 fell 0.36% while Spain’s IBEX 35 Index fell 0.61% The German DAX declined 1.10% French CAC 40 fell 0.69% and Italy’s FTSE MIB Index declined 2.12%.

French trade deficit shrank to EUR 6.7 billion in June, recording the lowest level since Aug. 2021, while the country posted a current account surplus of EUR 0.8 billion in June compared to a EUR 0.7 billion deficit in the prior month. The annual inflation rate in Germany fell to 6.2% in July from 6.4% in June. Retail sales in the UK increased 1.8% year-over-year in July.

 

Asia Pacific Markets

Asian markets closed mostly lower on Tuesday, with Japan’s Nikkei 225 rising 0.38%, China’s Shanghai Composite Index falling 0.25% and Hong Kong’s Hang Seng Index declining 1.81%. India’s S&P BSE Sensex, meanwhile, fell 0.1%.

The gauge for Japan's service sector sentiment rose to 54.4 in July from 53.6 in the earlier month, while average cash earnings in the country rose by 2.3% year-over-year in June. Japan's current account surplus widened to JPY 1,508.8 billion in June compared to JPY 497.9 billion in the year-ago month. Chinese trade surplus shrank to $80.6 billion in July from $102.7 billion in the year-ago period.

Australia's NAB business confidence index rose to 2 in July versus a revised reading of -1 in the previous month, while the Westpac-Melbourne Institute Consumer Sentiment index declined by 0.4% month-over-month to a reading of 81.0 in August.

 

Economics

• The NFIB Small Business Optimism Index rose for a third straight month to a reading of 91.9 in July.
• The U.S. trade deficit shrank to a three-month low level of $65.5 billion in June versus a revised $68.3 billion in May.
• Exports from the U.S. fell by $0.3 billion to $247.5 billion in June, while imports fell by $3.1 billion to $313.0 billion.
• Wholesale inventories in the U.S. fell 0.5% from a month ago in June versus the preliminary estimate of a 0.3% decline and compared to a revised 0.4% decline in the previous month.

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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 107,566,780 cases with around 1,170,780 deaths. India confirmed a total of at least 44,996,030 cases and 531,910 deaths, while France reported over 40,138,560 COVID-19 cases with 167,640 deaths. In total, there were at least 692,993,500 cases of COVID-19 worldwide with more than 6,905,480 deaths.