Dow Tumbles Over 300 Points; Target Posts Downbeat Earnings

U.S. stocks traded lower this morning, with the Dow Jones index falling more than 300 points on Wednesday.

Following the market opening Wednesday, the Dow traded down 0.85% to 42,314.31 while the NASDAQ fell 0.35% to 19,074.77. The S&P 500 also fell, dropping, 0.49% to 5,911.59.

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Leading and Lagging Sectors

Communication services shares rose by 0.7% on Wednesday.

In trading on Wednesday, health care stocks dipped by 1.1%.

Top Headline

Target Corporation TGT reported weaker-than-expected first-quarter results.

Target registered adjusted earnings per share of $1.30, missing analysts' consensus estimate of $1.64. Quarterly sales of $23.85 billion (down 2.8% year over year) missed the Street view of $24.32 billion.

Target lowered its FY2025 adjusted EPS guidance from $8.80–$9.80 to $7.00–$9.00 versus the $8.48 estimate and saw a sales decline in the low single digits. Target also revised its FY2025 GAAP EPS guidance from $8.80–$9.80 to $8.00–$10.00.

Equities Trading UP

SigmaTron International, Inc. SGMA shares shot up 129% to $2.96 after announcing Transom has offered to acquire the company in a transaction valued at $83 million.
Shares of CFSB Bancorp, Inc. CFSB got a boost, surging 74% to $13.70 after announcing Hometown Financial Group will acquire the company for approximately $44 million.
Edible Garden AG Incorporated EDBL shares were also up, gaining 68% to $6.05 after the company entered into inducement agreement with existing warrant holder to exercise 999,600 warrants at reduced price of $3.50 per share in exchange for issuance of 1.99m new unregistered 5-year warrants.

Equities Trading DOWN

Wolfspeed, Inc. WOLF shares dropped 67% to $1.02 following reports that the company is preparing to file for bankruptcy.
Shares of Siyata Mobile Inc. SYTA were down 39% to $5.00.
LeddarTech Holdings Inc. LDTC was down, falling 36% to $0.3298 after the company announced a reduction of its workforce through temporary layoffs of around 138 individuals, representing about 95% of its total workforce.

Commodities

In commodity news, oil traded up 0.7% to $62.48 while gold traded up 0.7% at $3,307.90.

Silver traded up 0.7% to $33.410 on Wednesday, while copper rose 0.6% to $4.6835.

Euro zone

European shares were mixed today. The eurozone's STOXX 600 fell 0.1%, while Spain's IBEX 35 Index fell 0.1%. London's FTSE 100 rose 0.1%, Germany's DAX 40 gained 0.1% and France's CAC 40 fell 0.4% during the session.

Asia Pacific Markets

Asian markets closed mostly higher on Wednesday, with Japan's Nikkei falling 0.61%, Hong Kong's Hang Seng Index gaining 0.62%, China's Shanghai Composite Index rising 0.21% and India's BSE Sensex gaining 0.51%.

Economics

U.S. mortgage application volumes declined by 5.1% from the previous week in the week ending May 16.

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