Dow Drops Over 100 Points; Coca-Cola Tops Q2 Views

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

Following the market opening Tuesday, the Dow traded down 0.35% to 31,876.91 while the NASDAQ fell 0.96% to 11,670.08. The S&P also fell, dropping, 0.58% to 3,943.94.

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Leading and Lagging Sectors

Real estate shares rose 0.6% on Tuesday. Meanwhile, top gainers in the sector included KE Holdings Inc. BEKE, up 2% and Alexandria Real Estate Equities, Inc. ARE up 3%.

In trading on Tuesday, consumer discretionary shares fell 2.1%.

Top Headline

The Coca-Cola Company KO reported better-than-expected earnings for its second quarter.

The company reported second-quarter FY22 sales growth of 12% year-on-year, to $11.30 billion, beating the analyst consensus estimate of $10.54 billion. Adjusted EPS of $0.70 beat the analyst consensus of $0.67.

Coca-Cola sees FY22 organic revenue growth of 12% - 13% and comparable EPS growth of 5% - 6%.

Equities Trading UP

Calix Inc CALX shares shot up 14% to $50.62 after the company announced upbeat Q2 results and issued strong Q3 sales forecast.

Shares of Covenant Logistics Group, Inc. CVLG got a boost, shooting 14% to $33.31 following better-than-expected Q2 results.

Encore Wire Corporation WIRE shares were also up, gaining 13% to $124.98 after the company reported Q2 results.

Equities Trading DOWN

Exela Technologies, Inc. XELA shares tumbled 40% to $1.7399 amid effectiveness of a 1-for-20 reverse stock split of the company's common stock.

Shares of Koss Corporation KOSS were down 26% to $8.27. Koss shares jumped 45% on Monday following a Bloomberg Law report titled "Apple, Koss Reach Deal in AirPods Patent Case on Eve of Trial."

Virax Biolabs Group Limited VRAX was down, falling 19% to $13.54 after the company announced it has launched distribution of Monkeypox and Varicella-Zoster Viruses Real Time PCR Detection Kits in response to the world's major Monkeypox outbreak.

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Commodities

In commodity news, oil traded up 0.7% to $97.40, while gold traded down 0.1% to $1,718.40.

Silver traded up 1.2% to $18.55 on Tuesday while copper rose 1.4% to $3.4015.

Euro zone

European shares were mostly lower today. The eurozone’s STOXX 600 fell 0.1%, London’s FTSE 100 rose 0.1% while Spain’s IBEX 35 Index fell 0.2%. The German DAX dropped 0.8%, French CAC 40 fell 0.5% and Italy’s FTSE MIB Index fell 0.8%.

Producer inflation in Spain eased slightly to 43.2% year-over-year in June from the 43.6% annual increase in the prior month.

Economics

The Federal Open Market Committee will start its two-day policy meeting today.

The S&P CoreLogic Case-Shiller 20-city home price index rose 20.5% year-over-year in May, following a record surged of 21.2% in the previous month. Analysts, meanwhile, were expecting for a 20.6% jump.

The FHFA House Price Index rose by 1.4% from a month ago in May.

The Conference Board’s consumer confidence index fell to 95.7 in July from a revised reading of 98.4 in the previous month.

New home sales dropped 8.1% from a month ago to an annual rate of 590,000 in June.

The Richmond Fed Manufacturing Index improved to 0 for July, versus a prior reading of 11.00.

The Treasury is set to auction 5-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 92,339,920 cases with around 1,052,460 deaths. India confirmed a total of at least 43,920,450 cases and 526,110 deaths, while Brazil reported over 33,621,960 COVID-19 cases with 677,210 deaths. In total, there were at least 576,299,300 cases of COVID-19 worldwide with more than 6,405,430 deaths.