Market Outlook for Wednesday, May 25, 2022

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News - "Mid-Afternoon Market Update: Dow Rises Over 100 Points; Verrica Pharmaceuticals Shares Slide"

U.S. stocks traded higher toward the end of trading, with the Dow Jones gaining more than 100 points on Wednesday.

The Dow traded up 0.42% to 32,061.88 while the NASDAQ rose 1.48% to 11,431.67. The S&P also rose, gaining, 0.85% to 3,975.07.

Also check this: Home Depot And 2 Other Stocks Insiders Are Buying


Leading and Lagging Sectors


Consumer discretionary shares rose by 2.5% on Wednesday. Meanwhile, top gainers in the sector included StoneMor Inc. (NYSE: STON), up 50% and GameStop Corp. (NYSE: GME) up 22%.


In trading on Wednesday, health care shares fell 0.5%.


Top Headline


DICK'S Sporting Goods, Inc. (NYSE: DKS) reported upbeat earnings and sales results for its first quarter.

Dick's posted quarterly adjusted earnings of $2.85 per share, beating analysts’ estimates of $2.47 per share. The company’s sales came in at $2.70 billion, versus expectations of $2.59 billion.

Dick's said it sees FY22 adjusted EPS of $9.15 to $11.70 and comparable store sales of negative 8% to negative 2%.

 

Equities Trading UP


StoneMor Inc. (NYSE: STON) shares shot up 50% to $3.41. StoneMor entered into an agreement to be acquired by Axar Capital Management, LP.


Shares of BlackSky Technology Inc. (NYSE: BKSY) got a boost, shooting 122% to $2.6152 after the company was awarded a 10-year electro optical commercial layer contract with the U.S. government.


The Very Good Food Company Inc. (NASDAQ: VGFC) shares were also up, gaining 148% to $0.3351 as the company announced it increased retail distribution across Canada with Loblaw Companies.


Equities Trading DOWN

Verrica Pharmaceuticals Inc. (NASDAQ: VRCA) shares tumbled 60% to $2.22 after the company announced it received a Complete Response Letter from the FDA for its NDA for VP-102 as a direct result of deficiencies at general reinspection of Sterling Pharmaceuticals Services, LLC.


Shares of Super Group (SGHC) Limited (NYSE: SGHC) were down 21% to $6.40 after reporting Q1 results.


COMSovereign Holding Corp. (NASDAQ: COMS) was down, falling 37% to $0.1711. COMSovereign said Nasdaq sent deficiency notice related to delayed quarterly report.


Also check out: Executives Sell Around $325M Of 3 Stocks


Commodities

In commodity news, oil traded up 0.3% to $110.14, while gold traded down 1.1% to $1,845.70.


Silver traded down 0.9% to $21.875 on Wednesday while copper fell 1.1% to $4.2590.



Euro zone


European shares closed higher today. The eurozone’s STOXX 600 rose 0.63%, London’s FTSE 100 rose 0.51% and Spain’s IBEX 35 Index rose 1.49%. The German DAX gained 0.63%, French CAC 40 rose 0.73% and Italy’s FTSE MIB Index gained 1.57%.

Producer prices in Spain jumped 45% year-over-year in April following a revised 47% surge in the prior month. French consumer confidence slipped to 86 in May, recording the weakest reading since October 2014. German gross domestic product grew 0.2% on quarter during the first three months of the year, while GfK Consumer Climate Indicator rose to -26 heading into June.


Economics


US durable goods orders rose 0.4% month-over-month to $265.3 billion in April.


US crude oil inventories declined by 1.019 million barrels in the week ended May 20th, the Energy Information Administration said.


The Federal Open Market Committee released minutes of its latest meeting.


Check out this: 2 Stocks Under $2 Insiders Are Aggressively Buying

COVID-19 Update

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 85,241,010 cases with around 1,029,520 deaths. India confirmed a total of at least 43,142,190 cases and 524,500 deaths, while Brazil reported over 30,836,810 COVID-19 cases with 665,950 deaths. In total, there were at least 529,165,590 cases of COVID-19 worldwide with more than 6,304,060 deaths.

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Movers & Shakers - "Cannabis Movers & Shakers: Chair Of Marijuana Regulatory Body Takes Job At Law Firm With Cannabis Practice, Tyson 2.0 & Curaleaf"
Mike Tyson's Cannabis Brand Tyson 2.0 Hires Alc-Bev Industry Veteran As CMO

Mike Tyson’s cannabis brand, Tyson 2.0, appointed Jackie (Northacker) Guarini as chief marketing officer to lead the company’s marketing strategy.

Guarini has more than a decade of professional experience in digital marketing, consumer connections, branding and media initiatives.

Prior to joining Tyson 2.0 team, she was head of commerce media for Anheuser-Busch InBev’s (NYSE: BUD) U.S. portfolio, where she built a first of its kind connected commerce strategy integrating shopper marketing, e-retail, and direct-to-consumer programs. She was in charge of social and programmatic partnerships working with companies including Google (NASDAQ: GOOGL), Meta Platforms (NASDAQ: FB), Pinterest (NYSE: PINS), Snapchat (NYSE: SNAP), Twiiter (NYSE: TWTR) Code3, Apollo Global Management’s (NYSE: APO), Yahoo, and The Trade Desk (NASDAQ: TTD).

The appointment of Guarini as the first CMO of Tyson 2.0 is part of the brand’s commitment to developing its house of brands strategy.

“This is a big moment for Tyson 2.0,” Adam Wilks, CEO of Tyson 2.0 stated “Jackie brings extensive experience building award-winning brands and cultivating mission-aligned partnerships.

Curaleaf Names Tyneeha Rivers New CPO

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) has tapped Tyneeha Rivers to serve as chief people officer.

The move follows the recent announcement of Matt Darin being named CEO, replacing Joe Bayern, who will be launching a new CPG-focused division of the company.

Rivers will lead the company's human resources department and help advance strategic HR operations, talent acquisition, talent management, diversity, equity and inclusion, leadership development, training programs, employee relationship management, compensation and benefits, job design and succession planning.

Tyneeha brings over 20 years of experience in corporate human resources, leading HR for various prominent organizations such as Merrill Lynch, Morgan Properties, The Galman Group, Philadelphia 76ers, Harris Blitzer Sports & Entertainment, Greater Philadelphia YMCA, and most recently, chief people officer at Curio Wellness.

“Tyneeha has a proven track record of building winning team cultures that positively impact business results,” Darin said. “My goal is not only to be the leading global cannabis company, but also the place to be for the most talented, motivated, and passionate team members in the industry, bar none."

Chair Of Maryland’s Marijuana Regulatory Body Takes Job At Law Firm With Cannabis Practice

Regulators in Maryland are questioning the recent appointment of the chair of the state’s medical cannabis regulatory board, Tiffany Randolph as an attorney at a law firm with a cannabis practice, reported The Baltimore Sun.

Randolph works as a personal injury and medical malpractice attorney at Shulman Rogers, a law firm that also advises Maryland cannabis companies on issues such as mergers, tax compliance and raising capital, to name a few, as per the firm’s website.

The attorney has been serving on the board of the regulatory body since 2017. Being unpaid positions, the board’s members have full-time jobs outside the cannabis space.

Chase Cook, a spokesperson for the Maryland Department of Health - the agency above the Maryland Medical Cannabis Commission - commented following Randolph’s appointment, “an ethical wall has been created separating her from the cannabis practice, its attorneys, and clients and potential clients.

“The Maryland Medical Cannabis Commission and Tiffany are also seeking advice from the State Ethics Commission as to any additional steps that may be necessary or recommended,” Cook added.

Photo: Courtesy of David Gabrić on Unsplash