Dow Drops Over 150 Points; Goldman Sachs Profit Misses Expectations

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

Following the market opening Tuesday, the Dow traded down 0.52% to 34,125.31 while the NASDAQ fell 0.44% to 11,030.57. The S&P 500 also fell, dropping, 0.20% to 3,991.07.

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Leading and Lagging Sectors

Energy shares gained by 0.9% on Tuesday. Meanwhile, top gainers in the sector included International Seaways, Inc. (NYSE:INSW), up 3%, and Vertex Energy, Inc. (NASDAQ:VTNR), up 6%.

In trading on Tuesday, communication services shares fell by 1.4%.

Top Headline

The Goldman Sachs Group, Inc. (NYSE:GS) reported weaker-than-expected earnings for its fourth quarter.

Goldman Sachs posted quarterly earnings of $3.32 per share, missing market estimates of $5.48 per share. The bank’s quarterly sales came in at $10.59 billion, versus expectations of $10.83 billion.

Equities Trading UP

 

  • MGO Global Inc. (NASDAQ:MGOL) shares shot up 28% to $5.96. MGO Global priced its 1.5 million share IPO at $5 per share.
  • Shares of Neovasc Inc. (NASDAQ:NVCN) got a boost, shooting 30% to $27.98 after Shockwave Medical announced it will acquire the company.
  • BIT Mining Limited (NYSE:BTCM) shares were also up, gaining 42% to $4.35 after the company announced the launch of a new energy efficient LiteCoin/DogeCoin Miner, LD3.

Equities Trading DOWN

  • Edesa Biotech, Inc. (NASDAQ:EDSA) shares tumbled 35% to $1.63 after the company reported topline Phase 2b results for its dermatology drug.
  • Shares of BigBear.ai Holdings, Inc. (NYSE:BBAI) were down 18% to $1.96 after the company announced a $25 million private placement.
  • iQIYI, Inc. (NASDAQ:IQ) was down, falling 13% to $5.80. iQIYI priced its 76.5 million ADS offering at $5.90 per ADS.

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Commodities

In commodity news, oil traded up 1.4% to $80.99 while gold traded down 0.3% at $1,915.30.

Silver traded down 0.9% to $24.15 on Tuesday while copper fell 0.5% to $4.1950.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 fell 0.1%, London’s FTSE 100 fell 0.1% while Spain’s IBEX 35 Index gained 0.1%. The German DAX climbed 0.1%, French CAC 40 climbed 0.3% and Italy’s FTSE MIB Index fell 0.1%.

The ZEW Indicator of Economic Sentiment for Germany climbed by 40.2 points from a month ago to a reading of +16.9 in January, while annual inflation rate in the country came in at 8.6% in December. The annual consumer price inflation in Italy declined to 11.6% in December.

The unemployment rate in the UK came in unchanged at 3.7% during the three months to November, while average weekly earnings including bonuses rose by 6.4% year-over-year to GBP 629.

Asia Pacific Markets

Asian markets closed mixed on Tuesday, with the Hong Kong’s Hang Seng Index dropping 0.78%, and China’s Shanghai Composite Index falling 0.10%. Japan’s Nikkei 225 gained 1.23%.

China’s retail trade fell by 1.8% year-over-year in December, while the country’s economy grew by 2.9% year-over-year in the fourth quarter. China’s industrial production rose 1.3% year-over-year in December.

Economics

The NY Empire State Manufacturing Index fell to -32.9 in January, recording the weakest reading since May 2020, compared to -11.2 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 103,583,980 cases with around 1,125,550 deaths. India confirmed a total of at least 44,681,880 cases and 530,720 deaths, while France reported over 39,453,000 COVID-19 cases with 163,460 deaths. In total, there were at least 671,760,100 cases of COVID-19 worldwide with more than 6,732,640 deaths.