Macro

Crude Oil Up 0.7%, Deere Cuts Outlook to $7B Amid Mixed Markets

Mixed market movements with Nasdaq down 0.1%, Dow up slightly; Deere cuts profit outlook amidst varied sector performance.

By Athena Xu

5/16, 14:50 EDT
S&P 500
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Deere & Company
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Key Takeaway

  • Deere & Co. cuts 2024 profit outlook to $7 billion, with net sales down 12% YoY but beating expectations.
  • Crude oil prices increased by 0.7% to $79.18, while major US stock indices showed mixed performance.
  • BM Technologies, AST SpaceMobile, and TSR Inc. saw significant share price jumps following positive financial news or acquisition announcements.

Mixed Market Movements

U.S. stock markets exhibited mixed movements with the Nasdaq Composite slightly down by 0.1%, while the Dow Jones Industrial Average saw a marginal increase of 0.01% to 39,912.06. The S&P 500 also experienced a slight decline, dropping 0.04% to 5,306.04. These movements reflect a cautious trading atmosphere among investors, with specific sectors showing varied performance.

Sector Performance

Consumer staples shares led the gains with a notable increase of 1.7%, indicating a shift towards more defensive investments amidst market uncertainty. On the contrary, materials shares faced a downturn, falling by 0.5%. This sectoral divergence underscores the selective approach of investors, focusing on sectors perceived as safer in a volatile market environment.

Corporate Highlights

Deere & Co reported a year-over-year decline in net sales and revenue by 12% to $15.235 billion, surpassing the consensus expectations. However, the company also adjusted its 2024 net income outlook downwards, reflecting potential challenges ahead. In the equities market, BM Technologies, AST SpaceMobile, and TSR, Inc. saw significant upticks in their share prices following positive financial results and strategic agreements. Conversely, Eyenovia, Inc., Spire Global, Inc., and Omeros Corporation experienced notable declines after reporting disappointing financial outcomes.

Global and Economic Insights

On the global front, European shares trended lower, while Asian markets closed higher, indicating a mixed sentiment across global markets. Japan's economy contraction and industrial production data, alongside Italy's inflation rate slowdown, provide a nuanced view of the global economic landscape. In the U.S., initial jobless claims saw a decrease, and housing starts showed an increase, offering a mixed picture of the domestic economy. Meanwhile, oil prices advanced, supported by a decline in U.S. stockpiles and a broader risk-on mood in the markets, hinting at potential shifts in commodity markets.