HomeMarket NewsSmall CapsDow Surges Over 100 Points as Earnings Disappoint Hormel Foods

Dow Surges Over 100 Points as Earnings Disappoint Hormel Foods

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U.S. stocks soared toward the end of trading, with the Dow Jones index jumping over 100 points on Wednesday.

Cheering the horde of investors, the Dow traded higher at 35,564.02, and the NASDAQ cheered up to 14,305.43. The S&P 500 also joined the festivities, increasing to 4,566.65.

Check This Out: How To Earn $500 A Month From NVIDIA Stock After Last Week’s Strong Earnings Report

 

A Tale of Leading and Lagging Sectors

 

The kingdom of real estate shares rejoiced, rising by 1.2% on Wednesday.

In a parallel universe, communication services shares fell by 0.8% during the trading.

 

The Great Earnings Saga

 

Hormel Foods Corp HRL reported a lackluster performance in its fourth quarter on Wednesday.

The company’s fourth-quarter FY23 sales tipped their hat with a decline of 2.6% year-on-year to $3.198 billion, falling short of the analyst consensus estimate of $3.264 billion. The adjusted EPS of $0.42 missed the consensus estimate of $0.44.

Peering into the crystal ball, Hormel sees FY24 sales of $12.2 billion – $12.5 billion versus the consensus of $12.28 billion. The company eyes FY24 adjusted EPS of $1.51 – $1.65 against the Street view of $1.68.

 

Feast and Famine in Equities Trading

 

The brewers of Vivos Therapeutics, Inc. VVOS were seen celebrating as their shares soared by 301% to $17.66. Their recent FDA 510(k) clearance for treating severe obstructive sleep apnea (OSA) in adults using the Vivos’ removable CARE (Complete Airway Repositioning and/or Expansion) oral appliances was hailed.

The kingdom of shares of Rover Group, Inc. ROVR also flourished, shooting up 29% to $10.93 after the company announced its agreement to be acquired by Blackstone in a $2.3 billion transaction.

Meanwhile, the Fluence Energy, Inc. FLNC shares were also on a high, gaining 24% to $25.05 after the company reported fourth-quarter financial results and initiated FY24 revenue guidance.

 

The Fall of Equities Trading

 

In a mournful turn of events, shares of BioVie Inc. BIVI fell by 61% to $1.9650 after the company announced less-than-thrilling efficacy data from its Phase 3 trial of NE3107 for mild to moderate Alzheimer’s disease.

Adding to the somber atmosphere, shares of Seelos Therapeutics, Inc. SEEL were down 42% to $1.3907 after the company announced the pricing of a $5.55 million public offering.

To add insult to injury, Farfetch Limited FTCH was down, falling 49% to $1.0796. Farfetch announced that it will abstain from announcing its third-quarter financial results and that the related conference call previously scheduled for Nov. 29, 2023, will not take place.

Also Check This Out: Jim Cramer: Buy Shares Of This Personal Computer Giant, Wait For ‘A Little Bit Of Pullback’

 

The Fable of Commodities

 

In the land of commodities, oil traded up 1.5% to $77.58, and gold traded up 0.3% at $2,066.00.

Silver traded up 0.7% to $25.48 on Wednesday, while copper fell 0.4% to $ .8255.

 

Euro zone: A Chronicle of Triumphs and Trials

 

European shares closed mostly higher today. The eurozone’s STOXX 600 gained 0.45%, London’s FTSE 100 fell 0.43%, while Spain’s IBEX 35 Index rose 0.59%. The German DAX rose 1.09%, French CAC 40 rose 0.24%, and Italy’s FTSE MIB Index rose 1.06%.

The industry confidence indicator in the Eurozone declined to -9.5 in November versus a revised reading of -9.2 in the prior month, while the economic sentiment indicator rose to 93.8 in November versus the revised reading of 93.5.

Consumer credit in the UK increased by £1.289 billion in October versus a revised £1.370 billion in the earlier month. The manufacturing confidence index in Italy rose to 96.6 in November versus 96.1 a month ago, and the consumer confidence index in Italy climbed to 103.6 in November from 101.6 in the prior period. Retail sales in Spain surged by 5% year-over-year in October versus a revised 6.3% increase in the previous month, while the consumer price inflation rate fell to 3.2% year-over-year in November.

 

Asia Pacific Markets

 

Asian markets closed mostly lower on Wednesday, with Japan’s Nikkei 225 falling 0.26%, Hong Kong’s Hang Seng Index falling 2.08%, and China’s Shanghai Composite Index falling 0.56%. India’s S&P BSE Sensex, however, climbed 1.1%.

The Domestic Supply Price Index in Singapore fell 2.2% year-over-year in October compared to a revised 0.5% decline in the earlier month.

 

Economics: The Tale of the Land of the Greenback

 

The US economy grew an annualized 5.2% in the third quarter, compared to 4.9% in the preliminary estimate, and higher than market estimates of 5%.

Corporate profits in the U.S. jumped by 4.1% from the prior quarter to $2.709 trillion during the third quarter.

The U.S. trade deficit in goods increased to $89.8 billion in October versus a revised $86.8 billion in the prior month.

Wholesale inventories in the U.S. declined by 0.2% month-over-month in October, compared to a revised 0.1% increase in the previous month.

The EIA laid bare that crude oil inventories in the U.S. increased by 1.609 million barrels in the week ending Nov. 24, compared to an 8.701 million increase in the prior period, and versus market estimates of a 0.933 million decline.

Now Read This: Top 5 Consumer Stocks That May Implode In November

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