Mid-Morning Market Update: Markets Open Lower; Dow Dips 300 Points

U.S. stocks traded lower this morning, with the Dow Jones dropping around 300 points on Tuesday.

Following the market opening Tuesday, the Dow traded down 0.89% to 33,746.55 while the NASDAQ fell 1.86% to 12,762.81. The S&P also fell, dropping, 1.09% to 4,249.09.

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Leading and Lagging Sectors

Energy shares rose by 0.5% on Tuesday. Meanwhile, top gainers in the sector included PHX Minerals Inc. PHX, up 10% and Indonesia Energy Corporation Limited INDO up 8%.

In trading on Tuesday, communication services shares dipped by 1.9%.

Top Headline

PepsiCo Inc PEP reported better-than-expected earnings for its first quarter on Tuesday.

PepsiCo reported first-quarter FY22 sales growth of 9.3% year-on-year to $16.2 billion, beating the consensus of $15.53 billion. Adjusted EPS of $1.29 beat the analyst consensus of $1.23.

PepsiCo continues to expect FY22 core constant currency EPS growth of 8%. The assumption implies FY22 core EPS of $6.63 (consensus $6.65), a 6% increase compared to 2021 core EPS of $6.26.


Equities Trading UP

Avadel Pharmaceuticals plc AVDL shares shot up 32% to $5.55. Shares closed down 36% on Monday, seemingly on no news. Avadel issued a press release Tuesday morning that highlighted the company was not aware of any new information related to the company's FT218 New Drug Application that would have caused the stock to move.

Shares of Sky Harbour Group Corporation SKYH got a boost, shooting 28% to $11.87 after jumping 16% on Monday.

Magnachip Semiconductor Corporation MX shares were also up, gaining 20% to $18.02 following a Korea Economic Daily report titled "Korea's LX Group seeks to acquire Magnachip Semiconductor."


Equities Trading DOWN

Protagonist Therapeutics, Inc. PTGX shares tumbled 46% to $10.13 after the company announced topline results from the Phase 2 IDEAL study of PN-943 in moderate-to-severe ulcerative colitis (UC) patients.

Shares of JE Cleantech Holdings Limited JCSE were down 26% to $13.79. The company, last week, priced its IPO at $4 per share.

NextDecade Corporation NEXT was down, falling 13% to $5.28. Stifel downgraded NextDecade from Hold to Sell and raised the price target from $2 to $4.

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In commodity news, oil traded up 1.2% to $99.68, while gold traded up 0.6% to $1,908.00.

Silver traded up 0.1% Tuesday to $23.685 while copper rose 0.6% to $4.4735.

Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.2%, London’s FTSE 100 gained 0.5%, while Spain’s IBEX 35 Index fell 0.6%. The German DAX rose 0.4%, French CAC 40 rose 0.5% and Italy’s FTSE MIB Index climbed 0.1%.

The UK government reported a £13.1 billion deficit in its public finances for March.


U.S. durable goods orders rose 0.8% month-over-month in March following a revised 1.7% decline in the previous month.

The S&P Corelogic Case-Shiller home price index climbed 20.2% year-over-year in February.

The FHFA House Price Index rose a record 2.1% from a month ago in February.

The Conference Board’s consumer confidence index fell to 107.3 in April from 107.6.

U.S. new home sales fell 8.6% to an annual rate of 763,000 for March.

The Richmond Fed composite manufacturing index rose to 14 in April from 13 in March.

The Treasury is set to auction 2-year notes at 1:00 p.m. ET.

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

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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 82,733,860 cases with around 1,018,580 deaths. India confirmed a total of at least 43,062,090 cases and 522,220 deaths, while Brazil reported over 30,355,910 COVID-19 cases with 662,770 deaths. In total, there were at least 510,131,270 cases of COVID-19 worldwide with more than 6,245,920 deaths.


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