Dow Drops Over 200 Points; Crude Oil Rises Sharply

U.S. stocks traded lower midway through trading, with the Dow Jones dropping more than 200 points on Tuesday.

The Dow traded down 0.66% to 32,517.70 while the NASDAQ fell 0.86% to 10,894.04. The S&P 500 also fell, dropping, 0.65% to 3,846.62.

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Leading and Lagging Sectors

Energy shares climbed 1% on Tuesday. Leading the sector was strength from NGL Energy Partners LP (NYSE:NGL) and Adams Resources & Energy, Inc. (NYSE:AE).

In trading on Tuesday, information technology shares fell by 1.1%.

Top Headline

Pfizer Inc. (NYSE:PFE) posted upbeat results for its third quarter on Tuesday.

Pfizer reported Q3 adjusted EPS of $1.78, up 40% Y/Y, well ahead of the consensus of $1.47. The company achieved revenues of $22.64 billion, down 6%, beating the Wall Street estimate of $21.37 billion.

Pfizer revised FY22 sales of $99.5 billion – $102 billion versus the consensus of $99.6 billion and the prior guidance of $98-$102 billion. The company has revised adjusted EPS guidance to $6.40 – $6.50 versus the earlier guidance of $6.30 – $6.45 and the consensus of $6.38.

Equities Trading UP

  • Abiomed, Inc. (NASDAQ:ABMD) shares shot up 50% to $378.48 after Johnson & Johnson announced it will acquire the company. Also, the company reported better-than-expected Q2 adjusted EPS results.
  • Shares of Harsco Corporation (NYSE:HSC) got a boost, shooting 23% to $6.50 after the company reported better-than-expected Q3 sales results and raised FY22 adjusted EPS guidance.
  • Safe-T Group Ltd (NASDAQ:SFET) shares were also up, gaining 63% to $0.4903 as the company said its privacy application reached over 5,000,000 downloads.

Equities Trading DOWN

  • Varonis Systems, Inc. (NASDAQ:VRNS) shares tumbled 33% to $17.84 after the company reported worse-than-expected Q3 results.
  • Shares of Catalent, Inc. (NYSE:CTLT) were down 26% to $48.78 after the company reported worse-than-expected Q1 EPS and sales results and issued FY23 sales guidance below estimates.
  • Myriad Genetics, Inc. (NASDAQ:MYGN) was down, falling 18% to $17.03 after the company reported worse-than-expected Q3 EPS and sales results.

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Commodities

In commodity news, oil traded up 2.4% to $88.63 while gold traded up 0.4% at $1,647.30.

Silver traded up 2.9% to $19.665 on Tuesday while copper rose 2.8% to $3.4710.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 gained 0.43%, London’s FTSE 100 rose 1.14% while Spain’s IBEX 35 Index rose 0.37%. The German DAX rose 0.34%, French CAC 40 rose 0.73% and Italy’s FTSE MIB Index rose 0.43%.

The S&P Global/CIPS UK manufacturing PMI rose to 46.2 in October from a preliminary reading of 45.8, while Nationwide house price index in the country climbed 7.2% year-over-year in October. Import prices in Germany surged by 29.8% year-over-year in September.

Asia Pacific Markets

Asian markets closed higher on Tuesday, with the Japan’s Nikkei 225 gaining 0.33% and China’s Shanghai Composite Index climbing 2.62%.

The Reserve Bank of Australia increased the cash rate by 25bps to 2.85% at its November 2022 meeting, while Australian manufacturing PMI declined to 52.7 in October from 53.5 in September. The S&P Global Indian manufacturing PMI rose to 55.3 in October from 55.1 in the previous month, while Caixin China general manufacturing PMI increased to 49.2 in October from September’s reading of 48.1. The au Jibun Bank Japan’s manufacturing PMI slipped to 50.7 in October from a final level of 50.8 in September.

Economics

  • The Federal Reserve started its two-day policy meeting today.
  • The S&P Global manufacturing PMI rose to 50.4 in October versus a preliminary estimates of 49.9.
  • US construction spending rose 0.2% in September.
  • The ISM manufacturing PMI declined to 50.2 in October from 50.9 in September.
  • The number of job openings in the US climbed by 437,000 to 10.72 million in September.

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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 99,374,720 cases with around 1,095,310 deaths. India confirmed a total of at least 44,654,630 cases and 529,070 deaths, while France reported over 36,813,380 COVID-19 cases with 156,990 deaths. In total, there were at least 635,816,190 cases of COVID-19 worldwide with more than 6,594,930 deaths.

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