Dow Dips Over 300 Points; Dick's Sporting Goods Posts Upbeat Earnings
U.S. stocks traded lower this morning, with the Dow Jones index falling more than 300 points on Wednesday.
Following the market opening Wednesday, the Dow traded down 0.90% to 38,505.03 while the NASDAQ fell 0.72% to 16,897.33. The S&P 500 also fell, dropping, 0.73% to 5,267.41 .
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Leading and Lagging Sectors
Information technology shares jumped by 1.4% on Wednesday.
In trading on Wednesday, industrials shares fell by 1.3%.
Top Headline
Dick’s Sporting Goods Inc (NYSE:DKS) reported better-than-expected first-quarter FY24 earnings and raised the outlook.
The company reported first-quarter FY24 sales growth of 6.2% year-on-year to $3.02 billion, beating the analyst consensus estimate of $2.94 billion.
Comparable store sales increased 5.3% versus a 3.6% growth a year ago. Adjusted EPS of $3.30 beat the analyst consensus estimate of $2.95.
Equities Trading UP
- ReShape Lifesciences Inc. (NASDAQ:RSLS) shares shot up 128% to $0.4750 a day after it received the nod from the U.S. Patent And Trademark Office to issue a patent for its obesity treatment.
- Shares of Brand Engagement Network, Inc. (NASDAQ:BNAI) got a boost, surging 49% to $1.8913. BEN announced a private placement at premium to market price and promotion of Paul Chang to co-CEO.
- Innovative Eyewear, Inc. (NASDAQ:LUCY) shares were also up, gaining 68% to $0.6870. Lucy Scientific Discovery received Nasdaq notification of non-compliance with Listing Rule 5250(c)(1).
Equities Trading DOWN
- Cue Health Inc. (NASDAQ:HLTH) shares dropped 40% to $0.0545 after the company announced that it filed voluntary petitions under Chapter 7 of the U.S. Bankruptcy Code in the District of Delaware to pursue a wind down of its business.
- Shares of AERWINS Technologies Inc. (NASDAQ:AWIN) were down 35% to $5.96. AERWINS Technologies shares jumped 143% on Tuesday after the company reported a year-over-year increase in first-quarter EPS results.
- Faraday Future Intelligent Electric Inc (NASDAQ:FFIE) was down, falling 30% to $0.82. Faraday Future's annual report for fiscal year 2023 showed a revenue of $0.8 million, significantly below analyst estimates of $2.59 million. While the net loss narrowed from $602 million in 2022 to $432 million in 2023, it still paints a concerning financial picture.
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Commodities
In commodity news, oil traded up 0.8% to $80.43 while gold traded down 0.5% at $2,344.80.
Silver traded down 0.1% to $32.115 on Wednesday, while copper fell 1.3% to $4.7945.
Euro zone
European shares were lower today. The eurozone's STOXX 600 fell 0.8%, Germany's DAX slipped 0.8% and France's CAC 40 declined 1.2%. Spain's IBEX 35 Index fell 0.8%, while London's FTSE 100 declined 0.4%.
The manufacturing confidence index in Italy climbed to 88.4 in May versus a revised reading of 87.7 in the prior month, while consumer confidence index in Italy rose to 96.4 in May versus 95.2 a month ago.
Bank lending to households in the Eurozone rose by 0.2% year-over-year in April, compared to market estimates of 0.4%. The consumer confidence indicator in France came in unchanged at 90 in May, while German GfK Consumer Climate Indicator climbed to -20.9 heading into June versus a revised reading of -24.0 in the prior period.
Asia Pacific Markets
Asian markets closed mostly lower on Wednesday, with Japan's Nikkei falling 0.77%, China's Composite Index gaining 0.05%, Hong Kong's Hang Seng Index falling 1.83% and India's S&P BSE Sensex falling 0.89%.
The consumer confidence index in Japan declined to 36.2 in May versus 38.3 in the prior month, while Domestic Supply Price Index in Singapore fell 0.1% year-over-year for April.
Economics
Mortgage applications in the US declined by 5.7% from the prior week during the period ending May 24.
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