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Dow Falls 150 Points; US Consumer Prices Rise 0.5% In January

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U.S. stocks traded lower this morning, with the Dow Jones dropping around 150 points on Tuesday.

Following the market opening Tuesday, the Dow traded down 0.46% to 34,089.44 while the NASDAQ fell 0.42% to 11,842.10. The S&P 500 also fell, dropping, 0.37% to 4,122.02.

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Leading and Lagging Sectors

  • Consumer discretionary shares fell by just 0.2% on Tuesday. Meanwhile, top gainers in the sector included Purple Innovation, Inc. (NASDAQ:PRPL), up 5%, and Denny’s Corporation (NASDAQ:DENN), up 3%.
  • In trading on Tuesday, energy shares dipped by 0.8%.

 

Top Headline

Consumer prices in the US rose 0.5% month-over-month in January, the most in three months, coming in-line with the market expectations. The annual inflation rate in the US eased to 6.4% in January from 6.5% in December.

Equities Trading UP

  • Fusion Pharmaceuticals Inc. (NASDAQ:FUSN) shares shot up 23% to $4.48 after the company announced it will acquire the Phase 2 program for 225Ac-PSMA I&T, a radiopharmaceutical targeting metastatic castrate resistant prostate cancer.
  • Shares of SkyWater Technology, Inc. (NASDAQ:SKYT) got a boost, shooting 20% to $13.77 after the company posted better-than-expected Q4 results.
  • Genius Brands International, Inc. (NASDAQ:GNUS) shares were also up, gaining 18% to $4.27 after the company announced an exclusive deal with BuzzFeed.

Equities Trading DOWN

  • VNET Group, Inc. (NASDAQ:VNET) shares tumbled 28% to $4.39.
  • Shares of Soligenix, Inc. (NASDAQ:SNGX) were down 32% to $3.95 after the company announced it received a refusal to file letter from the FDA for its HyBryte new drug application in the treatment of cutaneous T-Cell lymphoma.
  • Endava plc (NYSE:DAVA) was down, falling 16% to $73.91 after the company posted Q2 results.

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Commodities

In commodity news, oil traded down 2.6% to $78.09 while gold traded down 0.2% at $1,860.20.

Silver traded down 0.5% to $21.74 on Tuesday while copper rose 0.1% to $4.0595.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 gained 0.1%, London’s FTSE 100 rose 0.2% while Spain’s IBEX 35 Index rose 0.5%. The German DAX climbed 0.1% French CAC 40 surged 0.1% and Italy’s FTSE MIB Index rose 0.2%.

The unemployment rate in the UK came in unchanged at 3.7% in the three months to December, while average weekly earnings, including bonuses in the UK, rose by 5.9% year-over-year to GBP 630. Labor productivity in the UK rose 0.3% on quarter in the three months to December.

The annual wholesale price inflation in Germany fell to a 20-month low level of 10.6% in January compared to 12.8% in the prior month, while unemployment rate in France declined to 7.2% in the fourth quarter.

Asia Pacific Markets

Asian markets closed mostly higher on Tuesday, with Japan’s Nikkei 225 gaining 0.64%, Hong Kong’s Hang Seng Index dropping 0.24% and China’s Shanghai Composite Index gaining 0.28%. India’s S&P BSE Sensex surged 1%.

The annual wholesale price inflation rate in India fell to 4.73% in January from 4.95% a month ago, while passenger vehicles sales in the country climbed by 26.7% month-over-month to 298,093 units in January. Industrial production in Japan rose by 0.3% month-over-month in December, while the country’s economy expanded by 0.2% quarter-over-quarter in Q4.

Australia’s NAB business confidence index climbed 6 points to a reading of 6 for January, while Westpac-Melbourne Institute Index of Consumer Sentiment declined 6.9% to 78.5 during February.

Economics

  • The NFIB Small Business Optimism Index rose to 90.3 in January versus a six-month low level of 89.9 in December.
  • Consumer prices in the US rose 0.5% month-over-month in January, the most in three months, coming in-line with the market expectations.
  • The annual inflation rate in the US eased to 6.4% in January from 6.5% in December.

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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 104,787,050 cases with around 1,140,200 deaths. India confirmed a total of at least 44,684,270 cases and 530,750 deaths, while France reported over 39,565,480 COVID-19 cases with 164,580 deaths. In total, there were at least 677,746,160 cases of COVID-19 worldwide with more than 6,783,450 deaths.