Stock Market Today Mid-Morning Updates
On Tuesday, the Dow Jones Industrial Average is down by 280 points after ending an eight-week losing streak. This is one of the longest losing streaks in the last 100 years. Companies like Salesforce (NYSE: CRM) and Chewy (NYSE: CHWY) will be announcing their financials this four-day week. Oil prices continue to rise today as the European Union reached a deal on Monday to ban about 90% of Russian oil imports by the end of the year. The U.S. benchmark West Texas Intermediate crude is up and currently trades at $119 per barrel.
Shares of Yamana Gold (NYSE: AUY) are up by 15% today after it was announced that the gold producer will be acquired by Gold Fields (NYSE: GFI). The all-stock deal is valued at $6.7 billion. Zoom Video Communications (NASDAQ: ZM) received a double upgrade at Daiwa Securities, raising its rating to Outperform from Underperform. Daiwa says that growth expectations for Zoom are now more realistic after the recent tech pullback.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are up by 0.02% today while Microsoft (NASDAQ: MSFT) is down by 0.76%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading higher by 0.31% and 0.69% respectively on Tuesday. Among the Dow financial leaders, Visa (NYSE: V) is down by 1.15% while JPMorgan Chase (NYSE: JPM) is also down by 1.02%
Shares of EV leader Tesla (NASDAQ: TSLA) are up by 2.38% on Tuesday. Rival EV companies like Rivian (NASDAQ: RIVN) are also up by 5.10%. Lucid Group (NASDAQ: LCID) is also up by 1.39% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading higher today.
Dow Jones Today: U.S. Treasury Yields Rose To 2.8%; China Eases Covid Restrictions in Shanghai; Home Prices Surged In March Along With Interest Rates
Following the stock market opening on Tuesday, the S&P 500, Dow, and Nasdaq are all trading lower at 0.91%, 1.20%, and 0.51% respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is down by 0.10% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also down by 0.49%.
The benchmark 10-year U.S. Treasury yield rose to 2.8% today as bond yields move inversely to prices. This latest increase was likely spurred by preliminary data for May showing that Europe was hit by another round of record-high inflation and as oil prices also rose amidst an EU deal to block Russian oil. China will also lift Shanghai’s coronavirus lockdown on Wednesday, two months after the restrictions were first implemented in China’s most populous city.
Home prices were 20.6% higher than they were a year ago, according to the S&P CoreLogic Case-Shiller Home Price Index. This would also be higher than the 20% gain in February. Rising mortgage rates did now slow down rising home prices in March, according to the data. Cities like Phoenix, Tampa, and Miami continues to see the highest annual gains. The expectation for the months ahead is that prices will begin to ease as home sales have been falling now for several months.
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Nio Stock In Focus After Getting On Morgan Stanley’s “Tactical Idea” List
Shares of Nio are on the rise at today’s opening bell. On the whole, this leading name in the Chinese EV industry is gaining following a positive analyst update. In detail, the company’s stock is now on Morgan Stanley’s (NYSE: MS) “tactical idea,” list. What this means is that the firm believes that NIO stock could see gains over the next 15 days. Notably, as the recent batch of pandemic lockdowns continue to weigh on EV operations in China, this would come at a strategic time for Nio.
Providing some further insight into the bank’s positive coverage of NIO stock is analyst Tim Hsiao. He writes, “The associated production disruption also adversely affects the ramp-up/launch of NIO’s new models and aggravates the market’s concerns over NIO’s sales momentum. With gradual reopening in the Yangtze River Delta region as well as the Rmb10k subsidy provided by the Shanghai government to consumers to replace old cars with electric cars, we believe NIO is well-positioned to capitalize on such local stimulus programs and resume sales momentum in the upcoming months.”
Overall, Hsiao currently has an Overweight rating on NIO stock and a price target of $34. Should this be the case, it would mark gains of over 100% from its previous close of $16.57 last week. As Chinese EV firms like Nio continue to ramp up operations amidst reopening efforts, investors could be watching closely.
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TherapeuticsMD Stock Jumps Following News Of EW Healthcare Partners Buyout Deal
On the biotech front, TherapeuticsMD (NASDAQ: TXMD) is making waves following its latest announcement. Getting straight to it, as of today, the company is going private via an acquisition agreement. According to TherapeuticsMD, the private equity firm EW Healthcare Partners through an all-cash transaction. Also in the press release, the per-share price for TherapeuticsMD is $10 in the current deal. To put things into perspective, TXMD stock ended last week at a per-share price of $2.14. This would mark a premium of over 367%.
To begin with, EW will be kicking off a tender offer to acquire all the outstanding shares of the company. All in all, EW is acquiring TherapeuticsMD for about $177 million including debt. Weighing in on the overall deal is TherapeuticsMD CEO Hugh O’Dowd. He notes, “Together, we will continue empowering women of all ages through a therapeutic focus in family planning, reproductive health, and menopause management. We have a deep appreciation for EW Healthcare Partners’ depth of expertise and track record and know they will bring an incredible value of knowledge and strategic guidance.”
As a result of all this, TXMD stock is now gaining by over 300% at today’s opening bell. Safe to say, with gains like this, investors would be turning their radars towards TXMD stock today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.