Wall Street slips in choppy trading as energy stocks fall
By Medha Singh and Shashank Nayar
Reuters
(Reuters) -Wall Street s main indexes slipped in choppy trading on Tuesday, as investors cautiously awaited crucial data later in the week for more clues on the path of inflation.
Exxon Mobil Corp shed 2.3%, weighing the most on the benchmark S&P 500, after sources said BlackRock Inc has backed four candidates to join the energy giant s board.
Energy dropped about 1%, leading sectoral declines. Industrials and real estate were the only S&P sectors in positive territory.
Airline stocks were a bright spot after United Airlines and Hawaiian Holdings issued upbeat air traffic and ticket sale estimates that sent their shares up 3.2% and 4.5%, respectively.
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Lordstown Motors Corp (NASDAQ: RIDE) is trading significantly lower Tuesday morning after the company reported worse-than-expected earnings results.
What Happened: Lordstown Motors on Monday afternoon reported an earnings loss of 72 cents per share, which was much lower than the loss of 16 cents it reported in the same quarter last year.
Lordstown Motors announced that its goal of beginning production in September 2021 remains on track, however, it noted that the Lordstown Endurance production in 2021 will be limited to 50% of the company s prior expectations at best.
Morgan Stanley maintained Lordstown Motors with an Underweight rating and lowered the price target from $12 to $8 on Tuesday.
Lordstown Motors stock drops after earnings stoke case for skepticism
BLOOMBERG
The Lordstown Endurance electric pickup.
Lordstown Motors Corp. (Nasdaq: RIDE) shares tumbled Tuesday, May 25, after the electric-vehicle company cut its full-year production expectations for its Endurance pickup truck and said it will need outside capital.
Shares fell 7.4%, trimming some of their earlier losses but leaving the stock down more than 50% this year. The company s report prompted analysts at Goldman Sachs and Morgan Stanley to cut their price targets.
Risks have increased in the wake of the company s report, according to Goldman Sachs analyst Mark Delaney. He cut Lordstown shares to neutral in April due in part to the additional risks of ramping up production and the increasingly competitive landscape, and both factors are occurring in a more material way than we had expected.
BusinessWall Street ticks higher as inflation fears cool
Medha SinghShashank Nayar
4 minute read
The front facade of the New York Stock Exchange (NYSE) is seen in New York City, U.S., May 4, 2021. REUTERS/Brendan McDermid
Wall Street s main indexes rose in choppy trading on Tuesday, with the tech-heavy Nasdaq leading gains as inflation worries receded and U.S. bond yields eased for the fourth straight day.
The S&P 500 and the Nasdaq kicked off the week about 1% higher after Federal Reserve officials maintained that ultra-easy monetary policy will remain, allaying worries that higher prices may force the central bank to scale back its support.
Lordstown Motors Corp (NASDAQ: RIDE) has faced significant challenges being a public company in the first two quarters and needs to seek alternative sources .