Dow Surges as Commercial Metals Posts Strong Q1 Results Dow Surges Over 100 Points; Commercial Metals Posts Upbeat Q1 Results

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U.S. stocks capitalized on a surge in momentum Monday, with the Dow Jones index accelerating over 100 points during trading.

The Dow soared 0.35% to 37,596.43, while the NASDAQ ascended 1.89% to 14,799.21. The S&P 500 also experienced a healthy rise, increasing by 1.11% to 4,749.41.

Information technology shares flung themselves into the limelight, leaping by 2.1% on Monday. In contrast, energy shares stumbled, falling by 2.1%.

Commercial Metals Company

Commercial Metals Company CMC reported robust earnings for its first quarter on Monday, exceeding market expectations. The company delivered adjusted earnings of $1.63 per share, outperforming market estimates of $1.45 per share. Its quarterly sales also surpassed estimates, reaching $2.00 billion compared to the projected $1.89 billion.

Equities Trading UP

Harpoon Therapeutics, Inc. HARP shares rocketed 112% to $22.40 following an announcement from Merck regarding its acquisition of the company for $23 per share in cash. Meanwhile, shares of Ambrx Biopharma Inc. AMAM surged 101% to $27.43 after Johnson & Johnson revealed plans for an all-cash merger with the company, valuing it at approximately $2 billion. Additionally, Nkarta, Inc. NKTX experienced an upswing, rising 48% to $8.96 subsequent to announcing updates to its corporate presentation to reflect certain business and strategic changes.

Equities Trading DOWN

LumiraDx Limited LMDX shares plummeted by 42% to $0.0198. The company announced its securities would be suspended from trading on Nasdaq at the open of business on Jan. 9th. Additionally, shares of Dada Nexus Limited DADA were down 37% to $1.9950 after revealing certain suspicious practices identified during a routine internal audit, which may cast doubt on certain revenues from the company’s online advertising and marketing services in 2023. Furthermore, Solo Brands, Inc. DTC faltered, dropping 36% to $3.75 after lowering full-year 2023 revenue guidance below estimates.

Commodities

In commodity news, oil trended down by 4.6% to $70.44, while gold experienced a decrease of 0.8% to $2,034.30. Silver, on the other hand, saw a marginal improvement of 0.1% to $23.32, and copper rose by 0.3% to $3.8155 on Monday.

Euro zone

European shares concluded trading on a mostly positive note. The eurozone’s STOXX 600 ascended by 0.38%, London’s FTSE 100 inched upward by 0.06%, and Spain’s IBEX 35 Index rose by 0.44%. The German DAX surged by 0.74%, the French CAC 40 exhibited an increase of 0.40%, and Italy’s FTSE MIB Index advanced by 0.42%.

The consumer confidence indicator in the Eurozone climbed by 1.9 points from the prior month to -15 in December, while the economic sentiment indicator galloped to 96.4 in December from the revised reading of 94.0 in the earlier month. However, retail sales in the Eurozone succumbed to a 0.3% decline from the prior month in November, following a revised 0.4% increase in October. Factory orders in Germany experienced a month-over-month increase of 0.3% in November, and Germany’s trade surplus widened to EUR 20.4 billion in November compared to a revised EUR 17.7 billion in the prior month.

Asia Pacific Markets

Asian markets wrapped up Monday’s session on a downtrend, with Hong Kong’s Hang Seng Index declining by 1.88% and China’s Shanghai Composite Index falling by 1.42%. The S&P BSE Sensex in India also experienced a dip of 0.93%. Notably, Chinese foreign exchange reserves expanded to $3.238 trillion in December from $3.172 billion in the prior month.

Economics

Data on consumer credit for November is scheduled for release at 3:00 p.m. ET.

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