Mid-Morning Market Update: Markets Open Higher; McCormick Profit Beats Estimates

U.S. stocks opened on a strong note on Tuesday, with the Dow jumping around 350 points this morning.

The Dow traded up 1.02% to 35,314.04 while the NASDAQ rose 1.16% to 14,521.64. The S&P also rose, gaining, 0.82% to 4,612.83.

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Leading and Lagging Sectors

 

Communication services shares jumped by 1.4% on Monday. Meanwhile, top gainers in the sector included VEON Ltd. VEON, up 16% and DouYu International Holdings Limited DOYU up 10%.

 

In trading on Monday, energy shares fell 1.8%.


Top Headline


McCormick & Co Inc MKC reported better-than-expected earnings for its first quarter.


McCormick reported first-quarter FY22 sales growth of 2.7% year-on-year, to $1.52 billion, beating the consensus of $1.47 billion. Adjusted EPS of $0.63 beat the consensus of $0.62.


McCormick reiterated its FY22 sales, operating income, and EPS outlook. The company sees FY22 sales growth of 3% - 5% Y/Y. It expects FY22 Adjusted EPS of $3.17 - $3.22, against the consensus of $3.19.

 

Equities Trading UP


IGM Biosciences IGMS shares shot up 37% to $20.52. Sanofi SA SNY and IGM Biosciences signed an exclusive worldwide collaboration agreement for IgM antibodies agonists against three oncology targets and three immunology/inflammation targets.


Shares of Grid Dynamics Holdings, Inc. GDYN got a boost, shooting 27% to $15.06.


The Lovesac Company LOVE shares were also up, gaining 29% to $61.06. Lovesac reported fourth-quarter FY22 sales growth of 51.3% year-on-year, to $196.2 million, beating the consensus of $174.33 million.


Equities Trading DOWN

NeoGenomics, Inc. NEO shares tumbled 34% to $11.76 after the company announced it expects Q1 sales to be below its previously issued guidance range and withdrew its FY22 guidance. The company also announced Mark Mallon has agreed to step down as CEO.


Shares of Aveanna Healthcare Holdings Inc. AVAH were down 22% to $4.22 after the company said FY21 EPS results were down from last year. The company also issued FY22 sales guidance below analyst estimates. B of A Securities downgraded the stock from Buy to Neutral and lowered the price target from $10 to $5.5.


Marin Software Incorporated MRIN was down, falling 19% to $2.99.

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Commodities

In commodity news, oil traded down 5.1% to $100.59, while gold traded down 2.3% to $1,894.40.


Silver traded down 3.8% Tuesday to $24.235 while copper rose 0.1% to $4.7260.



Euro zone

European shares were higher today. The eurozone’s STOXX 600 gained 1.9%, London’s FTSE 100 rose 1.1%, while Spain’s IBEX 35 Index rose 2.7%. The German DAX gained 3.2%, French CAC 40 climbed 3.4% and Italy’s FTSE MIB Index rose 2.5%.

 

Economics

 

The S&P CoreLogic Case-Shiller home price index increased 19.1% in January.


The FHFA house price index rose 1.6% from a month ago in January.


The Conference Board’s consumer confidence index rose to 107.20 in March, versus a revised level of 105.70.


Philadelphia Fed President Patrick Harker will speak at 10:45 a.m. ET.


The Treasury is set to auction 7-year notes at 1:00 p.m. ET.


Data on money supply for February will be released at 1:00 p.m. ET.


Federal Reserve Bank of Atlanta President Raphael Bostic is set to speak at 9:30 p.m. ET.

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Check out our premarket coverage here .


COVID-19 Update

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 81,658,970 cases with around 1,004,240 deaths. India confirmed a total of at least 43,021,980 cases and 521,090 deaths, while Brazil reported over 29,852,340 COVID-19 cases with 659,010 deaths. In total, there were at least 483,970,220 cases of COVID-19 worldwide with more than 6,153,200 deaths.

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