Dow Surges 500 Points; Johnson & Johnson Lowers Guidance

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U.S. stocks traded higher midway through trading, with the Dow Jones gaining around 500 points on Tuesday.

The Dow traded up 1.64% to 31,581.59while the NASDAQ rose 2.11% to 11,599.41. The S&P also rose, gaining, 1.86% to 3,902.02.

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Leading and Lagging Sectors

Materials shares rose 2.7% on Monday. Meanwhile, top gainers in the sector included West Fraser Timber Co. Ltd. (NYSE:WFG), up 19% and Aspen Aerogels, Inc. (NYSE:ASPN) up 8%.

In trading on Monday, energy shares rose by just 1.1%.

Top Headline

Johnson & Johnson (NYSE:JNJ) reported upbeat earnings for its second quarter, but lowered its FY22 outlook.

The company reported Q2 FY22 adjusted earnings of $2.59 per share, up 4.4% Y/Y and slightly ahead of the consensus of $2.57. Net sales increased 3% Y/Y (8% on an operational basis) to $24.02 billion, marginally beating the consensus of $23.81 billion.

Johnson & Johnson said it expects FY22 adjusted EPS of $10.00 – $10.10, lower than the prior forecast of $10.15 – $10.35. The consensus estimate is $10.27. The company expects sales of $93.3 billion – $94.3 billion, compared to the previous guidance of $94.8 billion to $95.8 billion, versus the consensus of $96.04 billion.

Equities Trading UP

Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) shares shot up 25% to $55.93 after the company announced the U.S. Food and Drug Administration accepted and granted priority review designation for the new drug application for Pegcetacoplan.

Shares of Applied Blockchain, Inc. (NASDAQ:APLD) got a boost, shooting 49% to $1.5820 after the company reported a 200-megawatt five-year hosting contract with Marathon Digital Holdings and raised its Q4 revenue forecast.

Altamira Therapeutics Ltd. (NASDAQ:CYTO) shares were also up, gaining 32% to $0.6168 after the company announced its SemaPhore platform has shown to be particularly effective in intracellular mRNA delivery for cancer therapy.

Equities Trading DOWN

VIQ Solutions Inc. (NASDAQ:VQS) shares tumbled 15% to $1.15 after the company announced a $4.8 million private placement priced at $1.35 per unit.

Shares of High Tide Inc. (NASDAQ:HITI) were down 22% to $1.63 after the company reported a C$10 million “bought deal” public offering..

Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) was down, falling 17% to $50.54. Ultragenyx Pharmaceutical and GeneTx Biotherapeutics LLC announced interim data from the Phase 1/2 study in pediatric patients with a genetically confirmed diagnosis of full maternal UBE3A gene deletion.

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Commodities

In commodity news, oil traded down 0.1% to $102.54, while gold traded down 0.1% to $1,709.40.

Silver traded down 0.7% to $18.71 on Tuesday while copper fell 1.7% to $3.2885.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 climbed 1.15%, London’s FTSE 100 rose 0.93% while Spain’s IBEX 35 Index rose 2.07%. The German DAX gained 2.23%, French CAC 40 rose 1.56% and Italy’s FTSE MIB Index gained 2.21%.

Construction output in the Eurozone rose 2.9% year-over-year in May, following a revised 2.8% increase in the prior month. Annual inflation rate in the Eurozone was confirmed at a record high level of 8.6% in June up from 8.1% in May.

The unemployment rate in the UK came in steady at 3.8% in the three months to May, while average weekly earnings including bonuses rose 6.2% year-over-year to GBP 601.

Economics

U.S. housing starts fell 2% month-over-month to an annualized rate of 1.559 million units in June, the lowest since September 2021. Building permits, meanwhile, dropped 0.6% to an annualized rate of 1.685 million in June, the weakest level since September last year.

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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 91,429,400 cases with around 1,049,270 deaths. India confirmed a total of at least 43,783,060 cases and 525,780 deaths, while Brazil reported over 33,339,810 COVID-19 cases with 675,550 deaths. In total, there were at least 568,854,080 cases of COVID-19 worldwide with more than 6,389,770 deaths.