Dow Dips Over 300 Points; McDonald's Beats Q1 Expectations

U.S. stocks traded lower toward the end of trading, with the Dow Jones dropping over 300 points on Tuesday.

The Dow traded down 0.92% to 33,562.53 while the NASDAQ fell 1.75% to 11,826.47. The S&P 500, also fell, dropping, 1.40% to 4,079.31.

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Leading and Lagging Sectors

• Consumer staples shares rose by 0.1% on Tuesday. Meanwhile, top gainers in the sector included Compañía Cervecerías Unidas S.A. CCU, up 4%, and Utz Brands, Inc. UTZ, up 3%.
• In trading on Tuesday, energy shares dipped by 2.1%.

Top Headline

McDonald's Corp MCD reported better-than-expected results for its first quarter.

McDonald's reported first-quarter FY23 sales growth of 4% year-on-year to $5.89 billion, beating the consensus of $5.59 billion. Adjusted EPS of $2.63 beat the analyst consensus of $2.33.

Equities Trading UP

• Virios Therapeutics, Inc. VIRI shares shot up 32% to $2.0992 after the company announced initial FDA feedback on its proposed IMC-1 Phase 3 program for the treatment of fibromyalgia. The company said the proposed program is considered acceptable based on initial FDA feedback pending review of the final chronic toxicology program results.
• Shares of Spectrum Pharmaceuticals, Inc. SPPI got a boost, shooting 24% to $0.8533 after Assertio announced it will acquire the company in an all-stock and CVR transaction.
• Agrify Corporation AGFY shares were also up, gaining 24% to $0.2630 after the company announced that it will not consummate the warrant inducement transaction that Agrify had previously announced on April 19, 2023.

Equities Trading DOWN

• First Republic Bank FRC shares dropped 40% to $9.62 after the company announced a decline in deposits for the first quarter and said it will reduce its workforce by 20-25%.
• Shares of HomeStreet, Inc. HMST were down 37% to $11.00 following weak Q1 earnings.
• Vyant Bio, Inc. VYNT was down, falling 41% to $0.3234 as the company announced voluntary Nasdaq delisting and SEC deregistration.

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Commodities

In commodity news, oil traded down 2.5% to $76.80 while gold traded up 0.2% at $2,004.40.

Silver traded down 1.7% to $24.89 on Tuesday while copper fell 2.8% to $3.8450.

Euro zone

European shares were mostly lower today. The eurozone’s STOXX 600 fell 0.40%, London’s FTSE 100 fell 0.27% while Spain’s IBEX 35 Index fell 1.23% The German DAX rose 0.05%, French CAC 40 fell 0.56% and Italy’s FTSE MIB Index fell 1.03%.

Producer prices in Spain dropped 1% year-over-year in March versus a revised 8% increase in February.

Asia Pacific Markets

Asian markets closed mixed on Tuesday, with Japan’s Nikkei 225 gaining 0.09%, Hong Kong’s Hang Seng Index falling 1.71% and China’s Shanghai Composite Index declining 0.32%. India’s S&P BSE Sensex rose 0.3%.

Hong Kong’s trade deficit widened to $40.6 billion in March from $37.3 billion in the year-ago month. Year-on-year, exports declined 1.5% to $367.2 billion.

Economics

• The S&P CoreLogic Case-Shiller 20-city home price index rose 0.4% year-over-year in February, recording the smallest growth since 2012, and versus a 2.6% increase in January.
• US house price index climbed by 0.5% from a month ago in February, the FHFA said.
• Sales of new single-family houses rose 9.3% month-over-month to an annualised rate of 683,000 in March.
• The Dallas Fed general business activity index for Texas' service sector rose to -14.4 in April versus -18 in March.
• The Manufacturing Activity Index in the Richmond area declined to -10 in April compared to previous month’s reading of -5.

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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 106,580,790 cases with around 1,159,310 deaths. India confirmed a total of at least 44,905,820 cases and 531,360 deaths, while France reported over 39,951,430 COVID-19 cases with 166,280 deaths. In total, there were at least 686,587,930 cases of COVID-19 worldwide with more than 6,860,230 deaths.