Dow Drops 50 Points; J.M. Smucker Earnings Top Views

U.S. stocks traded lower this morning, with Dow Jones dropping around 50 points on Tuesday.

The Dow traded down 0.16% to 33,509.87 while the NASDAQ fell 0.19% to 13,203.91. The S&P 500, also fell, dropping, 0.11% to 4,269.06.

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Leading and Lagging Sectors

• Financials shares jumped by 0.7% on Tuesday. Meanwhile, top gainers in the sector included AlTi Global, Inc. ALTI, up 12%, and First Foundation Inc. FFWM, up 7%.
• In trading on Tuesday, consumer staples shares fell by 0.7%.

Top Headline

J M Smucker Co SJM reported better-than-expected earnings for its fourth quarter.

The company posted fourth-quarter FY23 sales growth of 10% year-on-year to $2.23 billion, beating the analyst consensus estimate of $2.17 billion. Adjusted EPS of $2.64 beat the Street view of $2.37.

J M Smucker said it sees FY24 adjusted EPS of $9.20 - $9.60 versus the consensus of $9.46.

Equities Trading UP

• GitLab Inc. GTLB shares shot up 24% to $43.94 after the company reported better-than-expected first-quarter results. Multiple analysts raised their price targets on the stock following the report.
• Shares of G-III Apparel Group, Ltd. GIII got a boost, shooting 21% to $19.89 following first-quarter results. G-III Apparel reported a master licensing partnership with Xcel Brands to design and produce all categories and distribute products globally for the Halston business and all of its brands.
• Zura Bio Limited ZURA shares were also up, gaining 18% to $7.65 after the company completed approximately $80 million financing with the focus on advancing ZB-106, a potential first-in-class anti-IL-17 and anti-BAFF dual antagonist.

Equities Trading DOWN

• Tingo Group, Inc. TIO shares dropped 54% to $1.18. A short report from Hindenburg Research has hit Tingo Group, calling it an "exceptionally obvious scam" with alleged falsified financials.
• Shares of NovoCure Limited NVCR were down 24% to $62.70. NovaCure disclosed results from the Phase 3 LUNAR clinical trial evaluating the use of tumor treating fields therapy with standard treatment therapies and said it met its primary endpoint at 2023 ASCO Annual Meeting.
• Chijet Motor Company, Inc. CJET was down, falling 22% to $4.61.

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Commodities

In commodity news, oil traded down 1.6% to $71.03 while gold traded up 0.1% at $ 1,976.60.

Silver traded down 0.2% to $23.585 on Tuesday while copper fell 0.4% to $3.7535.

Euro zone

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

Retail sales in the Eurozone came in unchanged for April versus a revised 0.4% drop in March, while Eurozone construction PMI slipped to 44.6 in May from 45.2 in the previous month.

The S&P Global/CIPS UK construction PMI climbed to 51.6 in May, topping market estimates of 51.1. French construction PMI dropped to 42.6 in May from 46 in April, while German Construction PMI rose to 43.9 in May from 42 a month ago. Industrial production in Spain fell 0.9% year-over-year in April, while factory orders in Germany fell by 0.4% month-over-month in April.

Asia Pacific Markets

Asian markets closed mixed on Tuesday, with Japan’s Nikkei 225 gaining 0.90%, Hong Kong’s Hang Seng Index falling 0.05% and China’s Shanghai Composite Index dropping 1.15%. India’s S&P BSE Sensex rose 0.01%.

The Reserve Bank of Australia increased the cash rate by 25bps to 4.1% at its latest meeting. Average cash earnings in Japan climbed by 1% year-over-year in April, while household spending in Japan fell by 4.4% year-over-year in April.

Economics

The Logistics Manager’s Index fell to a record low of 47.3 in May from 50.9 in April.

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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 107,142,410 cases with around 1,166,040 deaths. India confirmed a total of at least 44,991,880 cases and 531,880 deaths, while France reported over 40,098,850 COVID-19 cases with 167,370 deaths. In total, there were at least 689,960,740 cases of COVID-19 worldwide with more than 6,888,040 deaths.