Dow Falls Over 100 Points; Analog Devices Posts Upbeat Q2 Earnings

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

Following the market opening Wednesday, the Dow traded down 0.44% to 32,908.94 while the NASDAQ fell 0.44% to 12,505.23. The S&P 500, also fell, dropping, 0.52% to 4,124.03.

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Leading and Lagging Sectors

• Energy shares rose by 0.2% on Wednesday. Meanwhile, top gainers in the sector included StealthGas Inc. GASS, up 9%, and Verde Clean Fuels, Inc. VGAS, up 11%.
• In trading on Wednesday, financial shares fell 1.2%.

Top Headline

Analog Devices, Inc ADI reported better-than-expected results for its second quarter.

Analog Devices reported second-quarter FY23 revenue growth of 10% year-on-year to $3.26 billion, beating the consensus of $3.21 billion. Adjusted EPS of $2.83 beat the consensus of $2.75.

Analog Devices sees third-quarter revenue of $3.10 billion, +/- $100 million, vs. the consensus of $3.16 billion. The company sees adjusted EPS of $2.52, +/-$0.10, vs. the consensus of $2.65.

Equities Trading UP

• GigaCloud Technology Inc. GCT shares shot up 85% to $10.65 after the company reported a year-over-year increase in first-quarter financial results.
• Shares of Enveric Biosciences, Inc. ENVB got a boost, shooting 65% to $5.20 after the company announced it received a Notice of Allowance from the USPTO for a patent application involving its EVM201 Series.
• Zura Bio Limited ZURA shares were also up, gaining 38% to $7.36 after Raymond James initiated coverage on the stock with a Strong Buy rating and a $20 price target.

Equities Trading DOWN

• CohBar, Inc. CWBR shares dropped 30% to $3.5720. CohBar shares jumped 223% on Tuesday after the company and Morphogenesis announced they have entered into a definitive agreement for an all-stock transaction forming a company combining expertise and resources to advance a late-stage oncology pipeline.
• Shares of PTC Therapeutics, Inc. PTCT were down 27% to $42.69 after the company announced its MOVE-FA trial of vatiquinone did not meet its primary endpoint. The company will discontinue its preclinical and early research gene therapy programs.
• Petco Health and Wellness Company, Inc. WOOF was down, falling 27% to $7.41 after the company posted first-quarter results.

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Commodities

In commodity news, oil traded up 2% to $74.38 while gold traded up 0.1% at $1,975.30.

Silver traded down 0.8% to $23.44 on Wednesday while copper fell 1.5% to $3.5995.

Stocks of crude oil in the US dropped by 6.799 million barrels in the week ended May 19, recording the biggest drop in six months, the API said Tuesday.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 1.8%, London’s FTSE 100 fell 1.8% while Spain’s IBEX 35 Index fell 1.2% The German DAX declined 1.7%, French CAC 40 fell 1.8% and Italy’s FTSE MIB Index fell 2.1%.

The Ifo Business Climate indicator for Germany fell by 1.7 points from a month ago to 91.7 in May. The consumer price inflation in the UK eased to 8.7% year-over-year in April 2023, recording the lowest level since March 2022, while factory gate prices of goods produced by UK manufacturers fell to 5.4% year-over-year in April versus a revised 8.5% level in the prior month.

Asia Pacific Markets

Asian markets closed lower on Wednesday, with Japan’s Nikkei 225 dropping 0.89%, Hong Kong’s Hang Seng Index falling 1.62% and China’s Shanghai Composite Index dropping 1.28%. India’s S&P BSE Sensex fell 0.2%.

The Reuters Tankan sentiment index for manufacturers in Japan rose to a reading of +6 in May compared to -3 in the prior month. The Westpac-Melbourne Institute Leading Economic Index in Australia came in flat versus the earlier month for April.

Economics

Mortgage applications in the US dropped 4.6% in the week ended May 19 2023, versus a 5.7% decline in the prior week, according to data from the Mortgage Bankers Association.

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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 107,056,690 cases with around 1,164,560 deaths. India confirmed a total of at least 44,987,330 cases and 531,840 deaths, while France reported over 40,061,440 COVID-19 cases with 167,200 deaths. In total, there were at least 689,124,030 cases of COVID-19 worldwide with more than 6,881,400 deaths.