Dow Drops 100 Points; US Trade Deficit Widens In October

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

Following the market opening Tuesday, the Dow traded down 0.31% to 33,842.20 while the NASDAQ fell 1.23% to 11,101.68. The S&P 500 also fell, dropping, 0.70% to 3,970.90.

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Leading and Lagging Sectors

Utilities shares rose by 0.2% on Tuesday. Meanwhile, top gainers in the sector included Enel Chile S.A. ENIC, up 7%, and Azure Power Global Limited AZRE, up 3%.

In trading on Tuesday, communication services shares dipped by 1.6%.

Top Headline

The US trade gap increased to a four-month high of $78.2 billion in October versus a revised gao of $74.1 billion in September. Exports from the US fell by $1.9 billion to $256.6 billion in October, while imports rose by $2.2 billion to $334.8 billion in October.

Equities Trading UP

• Vivint Smart Home, Inc. VVNT shares shot up 32% to $11.90 after NRG Energy announced it will acquire the company for $12 per share in cash.
• Shares of Signet Jewelers Limited SIG got a boost, shooting 17% to $67.91 after the company reported better-than-expected Q3 results and issued FY23 guidance above estimates.
• Astronics Corporation ATRO shares were also up, gaining 12% to $10.10. The company, last month, posted downbeat quarterly results.

Equities Trading DOWN

• Gossamer Bio, Inc. GOSS shares tumbled 68% to $2.93 after the company reported announced topline results for the TORREY Phase 2 study of seralutinib in patients with pulmonary arterial hypertension (PAH).
• Shares of Checkpoint Therapeutics, Inc. CKPT were down 22% to $4.07. Checkpoint Therapeutics announced a 1-for-10 reverse stock split.
• Barnes & Noble Education, Inc. BNED was down, falling 21% to $2.0050 after reporting downbeat Q2 earnings.

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Commodities

In commodity news, oil traded down 0.4% to $76.66 while gold traded up 0.3% at $1,786.30.

Silver traded up 0.7% to $22.575 on Tuesday while copper rose 1.3% to $3.8430.

Euro zone

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

The S&P Global construction PMI for the Eurozone dropped to 43.6 in November from 44.9 in the previous month, while French construction PMI declined to 40.7 in November from 44.3. The S&P Global German construction PMI declined to 41.5 from 43.8, while factory orders in Germany rose by 0.8% month-over-month during October.

The S&P Global/CIPS construction PMI for the UK dropped to a three-month low of 50.4 for November, while retail sales in the country rose 4.1% year-over-year in November. The S&P Global Italy construction PMI rose to 52 in November from 48.1 in the previous month.

Asia Pacific Markets

Asian markets closed mixed on Tuesday, with the Japan’s Nikkei gaining 0.24% and Hong Kong’s Hang Seng Index dropping 0.40%. China’s Shanghai Composite Index rose 0.02%.

Household spending in Japan increased by 1.2% from the previous year during October, while average cash earnings in the country climbed by 1.8% year-over-year in October.

The Reserve Bank of Australia increased the cash rate by 25 bps to 3.1% at its recent meeting. Australia unexpectedly reported a current deficit of AUD 2.3 billion during Q3, versus market estimates of a AUD 6.2 billion surplus.

Economics

• The US trade gap increased to a four-month high of $78.2 billion in October versus a revised gao of $74.1 billion in September. Exports from the US fell by $1.9 billion to $256.6 billion in October, while imports rose by $2.2 billion to $334.8 billion in October.
• The Logistics Manager’s Index declined for a second month to a reading of 53.6 in November from 57.5 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 100,906,110 cases with around 1,106,990 deaths. India confirmed a total of at least 44,674,870 cases and 530,630 deaths, while France reported over 38,078,560 COVID-19 cases with 159,240 deaths. In total, there were at least 650,561,350 cases of COVID-19 worldwide with more than 6,648,270 deaths.