On Wednesday, the Dow Jones Industrial Average is down by 200 points. This comes after minutes from the Fed’s March meeting were released. The minutes suggest that the Fed is getting more hawkish on monetary policy tightening and is pushing for a quick reduction in the central bank’s bloated balance sheet. One official even expressed openness to a hefty rate increase of half a percentage point. Fed Governor Lael Brainard, on Tuesday, says that she expects methodical interest rate increases and rapid reductions to the Fed’s nearly $9 trillion balance sheet to bring U.S. monetary policy to a “more neutral position” later this year.
Today, Twitter (NYSE: TWTR) is down by 2.3% after rallying by nearly 30% since the start of the week. This latest rally seems to be from news of Elon Musk’s 9.2% stake in the social media company. Elon will also join Twitter’s board of directors. Occidental Petroleum (NYSE: OXY) is up after Stifel Financial began coverage with a Buy rating. Stifel says that Occidental remains attractively priced even after it nearly doubled so far this year.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down by 2.08% today while Microsoft (NASDAQ: MSFT) is also down by 2.59%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading lower on Wednesday. Among the Dow financial leaders, Visa (NYSE: V) is down by 2.07% while JPMorgan Chase (NYSE: JPM)is also down by 0.86%.
Shares of EV leader Tesla (NASDAQ: TSLA) are down by 4.02% on Wednesday. Rival EV companies like Rivian (NASDAQ: RIVN) are also down by 2.13%. Lucid Group (NASDAQ: LCID) is also down by 3.48% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) opened lower today.
Dow Jones Today: Treasury Yields Breaches To New Pandemic Era Highs Again
Following the stock market opening on Wednesday, the S&P 500, Dow, and Nasdaq are trading lower at 1.13%, 0.72%, and 2.11% respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is down by 2.03% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also down by 1.16%.
The 10-year Treasury yield breached 2.63% today, rising to the highest level since early 2019 after Federal Reserve Governor Lael Brainard provided hawkish remarks. CNBC’s Jim Cramer also says that investors should take Brainard’s inflation policy comments to heart and sell some holdings. However, this rise in the 10-year yield has climbed above the 2-year yield and out of an inversion. The spike higher in bond yields also drove mortgage rates up today.
Oil prices also remain elevated on persistent supply concerns as the U.S. and its European allies consider more sanctions against Moscow. This comes after allegations emerged about war crimes being committed by Russian troops in Ukraine. European Commission President Ursula von der Leyen says that sanctions from the EU will include a ban on Russian coal imports, which are worth $4 billion annually.
[Read More] Top Stock Market News For Today April 6, 2022
Tilray Stock Gains Following Better-Than-Expected Quarterly Financials Update
Among the top gainers in the stock market today is Tilray (NASDAQ: TLRY). As a result of its latest quarterly earnings release, the global cannabis goliath is in focus now. Evidently, TLRY stock is currently gaining by over 8% at today’s opening bell. Going right into it, investors are likely focusing on Tilray’s swing towards an operating profit for the quarter. The company is looking at a net income of $52.5 million for the quarter. This translates to an earnings per share of $0.09, a substantial beat over Wall Street estimates of an $0.08 loss.
Furthermore, Tilray’s net revenue is also at a commendable $152 million. This adds up to a year-over-year increase of about 23%. Notably, Tilray cites its continued strength across core and new markets for its performance for the quarter. Firstly, the company highlights that it maintained its #1 leading marketing share in the Canadian market. Secondly, Tilray is also now a leader in medical marijuana market share in Europe and Germany. According to the company, it saw revenue growth of over 4,000% across these regions.
Despite its outstanding operational achievements, Tilray does not seem to be stopping anytime soon. The company is currently working with Amazon’s (NASDAQ: AMZN) Whole Foods Market (WFM). Through this partnership, Tilray’s world-leading hemp foods brand Manitoba Harvest is debuting new Hemp+ products with WFM. In particular, this will see its Hemp+ Macha and Hemp+ Supergreens powders being available at over 300 WFM locations nationwide. At the same time, Solei, one of the company’s cannabis wellness brands, is launching the first cannabis edible in Quebec. As Tilray seems to be firing on all cylinders now, investors are understandably hyped about TLRY stock.
[Read More] Top Social Media Stocks To Watch As Elon Musk Takes Stake In Twitter
Gogo Stock In Focus As Company Joins S&P SmallCap 600
Another head-turner in today’s trading session would be Gogo (NASDAQ: GOGO). In brief, Gogo is a provider of in-flight broadband Internet services for the airline industry. Worth mentioning, it is the largest provider of such solutions for the business aviation market today. Through its portfolio, Gogo offers a customizable suite of smart cabin systems that boast a wide array of cutting-edge features. This includes but is not limited to highly integrated connectivity, inflight entertainment, and voice solutions. Seeing as Gogo plays a crucial role in bringing connectivity to the aviation industry, GOGO stock could be worth watching.
For today, the current momentum in the company’s shares is likely thanks to Gogo joining the S&P SmallCap 600. In doing so, the company is replacing SPX Flow (NYSE: FLOW). While this news is great for Gogo, investors should also consider the company’s latest full fiscal year results. In which it reported a record total revenue of about $335.7 million. Explaining the company’s overall trajectory now is CEO Oakleigh Thorne. He says, “Demand for connectivity in business aviation, combined with the excellent performance of our AVANCE platform, are driving record sales of equipment and high-margin service plans for Gogo.” Thorne continues, “We remain on track for commercial deployment of our 5G ATG network in the second half of 2022 which we expect to further accelerate our growth.” As such, there could be more substance to the current uptick in GOGO stock than most would expect.
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