Market Volatility as Trimble Issues Weak Outlook

Written By Michael Gary Scott

U.S. stocks were in a complex dance this morning as the Dow Jones traded down about 20 points on Monday.

As the market opened on Monday, the Dow slipped 0.05% to 38,651.80. Meanwhile, the NASDAQ showed resilience, rising 0.09% to 16,004.39. The S&P 500 also inched upward, gaining 0.01% to 5,026.74.

 

Industry Performance

 

Energy shares were the day’s standout performers, rising by 0.8% on Monday. However, the health care sector struggled, with shares falling by 0.3%.

 

Key Earnings Report

 

Trimble Inc TRMB reported impressive earnings for the fourth quarter. However, the company issued a cautious outlook for the first quarter.

Trimble’s fourth-quarter FY23 revenue ascended by 9% to $932.40 million, beating the consensus of $909.53 million. Additionally, revenue grew by 3% year-over-year on an organic basis. The adjusted EPS of $0.63 exceeded the consensus of $0.59.

For fiscal 2024, Trimble expects revenue in the range of $3.57 billion to $3.67 billion, falling short of the consensus of $3.84 billion. The company also anticipates adjusted EPS of $2.60 to $2.80, compared to the Street view of $2.72.

Moreover, Trimble forecasts first-quarter revenue of $905 million to $935 million (consensus $977.07 million) and adjusted EPS of 57 cents to 62 cents (consensus 68 cents).

 

Stocks on the Rise

 

Beamr Imaging Ltd. BMR saw its shares surge 234% to $7.05 following the company’s announcement regarding joint research related to automated video modernization with NVIDIA at the ACM Mile-High-Video 2024 conference.

Shares of Millennium Group International Holdings Limited MGIH climbed 154% to $2.62 after YC 1926 (BVI) Limited reported an 88.89% stake in the company in a 13G filing on Friday.

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DIH Holdings US, Inc. DHAI also experienced an uptick, with shares gaining 66% to $2.14. DIH Holding US secured $1.5 million in private placement financing from OrbiMed.

 

Stocks on the Decline

 

AN2 Therapeutics, Inc. ANTX witnessed a 73% drop to $5.35 after the company announced a voluntary pause in the Phase 3 part of the Phase 2/3 pivotal clinical trial evaluating epetraborole in treatment-refractory MAC lung disease.

Shares of WiSA Technologies, Inc. WISA plunged 39% to $0.0482. WiSA Technologies priced a 153,840,000 unit offering for gross proceeds of $10 million.

MedAvail Holdings, Inc. MDVL also declined, falling 36% to $2.04.

 

Commodity Updates

 

In commodity news, oil declined by 0.2% to $76.69, while gold traded down 0.5% at $2,028.60. Silver saw a modest 0.1% increase to $22.62, and copper rose 0.3% to $3.6925 on Monday.

 

Euro Zone and Asia

 

Overseas, European shares displayed strength, with the eurozone’s STOXX 600 and London’s FTSE 100 both recording gains. Meanwhile, Asia Pacific markets closed lower on Monday, with India’s S&P BSE Sensex and Australia’s S&P/ASX 200 both experiencing declines.

 

Economic Developments

 

The U.S. Treasury statement for January will be released at 2:00 p.m. ET.

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