Macro

Dow Dips 550 Points; BJ's Wholesale Club Beats Earnings Estimates

Dow Drops 550 Points; BJ's Wholesale Club Beats Earnings Estimates with 4.1% Revenue Growth

By Mackenzie Crow

5/23, 14:48 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
BJ's Wholesale Club Holdings, Inc.
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Key Takeaway

  • The Dow Jones fell over 550 points, or 1.44%, to 39,098.81, with the NASDAQ and S&P 500 also declining.
  • BJ's Wholesale Club (BJ) reported a revenue increase of 4.1% YoY to $4.918 billion and an EPS of $0.85, beating estimates.
  • OneMedNet Corporation (ONMD) shares surged 141% following a significant expansion announcement; e.l.f. Beauty (ELF) rose by 22% on strong earnings results.

Market Decline Amid Mixed Sector Performance

U.S. stocks experienced a notable decline towards the end of trading on Thursday, with the Dow Jones Industrial Average falling over 550 points, or 1.44%, to close at 39,098.81. The NASDAQ Composite also saw a drop of 0.39%, ending at 16,735.32, while the S&P 500 decreased by 0.69% to 5,270.47. This broad market downturn was driven by a mix of sector performances, with information technology shares rising by 1.5%, while real estate shares fell by 1.3%.

In the commodities market, oil prices fell by 1.1% to $76.72 per barrel, and gold prices dropped by 2.4% to $2,336.30 per ounce. Silver and copper also saw declines, with silver down 3.5% to $30.395 and copper down 1.2% to $4.7885.

Earnings Highlights and Stock Movements

Several companies reported earnings that influenced their stock prices significantly. BJ's Wholesale Club Holdings, Inc. posted a quarterly revenue growth of 4.1% year-on-year to $4.918 billion, surpassing the analyst consensus estimate of $4.831 billion. The company's adjusted EPS of 85 cents also beat the consensus estimate of 83 cents, leading to positive investor sentiment.

On the upside, OneMedNet Corporation's shares surged 141% to $1.14 after the company highlighted a significant expansion of its iRWD network and platform. Bicycle Therapeutics plc saw an 18% increase in its stock price to $25.24 following a $555 million private placement equity financing announcement. e.l.f. Beauty, Inc. also experienced a 22% rise to $190.37 after reporting better-than-expected fourth-quarter earnings.

Conversely, Banzai International, Inc. saw its shares plummet by 26% to $0.1698 after announcing the pricing of a $2.5 million public offering. Cytokinetics, Incorporated's stock fell by 16% to $49.71 following the pricing of its public offering of 9,803,922 common stock at $51 per share. Triumph Group, Inc. also reported a decline, with shares falling 12% to $13.18 after releasing its fourth-quarter FY24 results.

Economic Indicators and Global Market Performance

The Chicago Fed National Activity Index declined to -0.23 in April from a revised -0.04 in the previous month, indicating a slowdown in economic activity. U.S. initial jobless claims fell by 8,000 to 215,000 for the week ending May 18, slightly better than market estimates of 220,000. The S&P Global manufacturing PMI rose to 50.9 in May from 50 in April, while the services PMI climbed to 54.8 from 51.3. The composite PMI increased to 54.4 in May from 51.3 in April, exceeding market expectations of 51.1. However, sales of new single-family houses fell by 4.7% month-over-month to an annualized rate of 634,000 in April.

In the Eurozone, the STOXX 600 rose by 0.07%, Germany's DAX increased by 0.06%, and France's CAC 40 gained 0.13%. However, Spain's IBEX 35 Index fell by 0.16%, and London's FTSE 100 declined by 0.37%. The HCOB Eurozone services PMI remained unchanged at 53.3 in May, while the manufacturing PMI rose to 47.4, the highest level in 15 months. The S&P Global UK composite PMI fell to 52.8 in May from 54.1 in April, while Germany's composite PMI climbed to 52.2, the strongest reading in a year. France's composite PMI declined to 49.1 in May from 50.5 in April.

Asian markets closed mixed, with Japan's Nikkei surging by 1.26%, China's Composite Index dipping by 1.33%, Hong Kong's Hang Seng Index falling by 1.70%, and India's S&P BSE Sensex gaining by 1.36%. The annual inflation rate in Hong Kong eased to 1.1% in April from 2% in March, while the HSBC India composite PMI rose to 61.7 in May from 61.5 in April. The au Jibun Bank Japan composite PMI increased to 52.4 in May from 52.3 in April.