Market Overview

Mid-Morning Market Update: Markets Open Higher; Greenbrier Reports Q2 Earnings Beat

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Following the market opening Tuesday, the Dow traded up 2.05% to 23145.91 while the NASDAQ rose 0.98% to 7,990.46. The S&P also rose, gaining 1.51% to 2,703.96.

The U.S. is now the epicenter of the coronavirus pandemic with the highest number of cases around the world. U.S. reported a total of 368,400 coronavirus cases with around 10,900 deaths. Spain confirmed a total of over 140,500 coronavirus cases with 13,700 deaths, while Italy reported a total of at least 132,500 confirmed cases and 16,500 deaths. In total, there were at least 1,359,300 cases of COVID-19 worldwide with over 75,900 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Energy shares climbed 7.2% on Tuesday. Meanwhile, top gainers in the sector included Western Midstream Partners, LP (NYSE: WES), up 21%, and DCP Midstream, LP (NYSE: DCP), up 18%.

In trading on Tuesday, consumer staples shares rose by just 0.4%.

Top Headline

Greenbrier Companies Inc (NYSE: GBX) reported better-than-expected earnings for its second quarter, while sales missed views.

Greenbrier reported quarterly earnings of $0.46 per share, beating analysts’ estimates of $0.29 per share. The company’s sales came in at $623.8 million, missing the consensus view of $798.97 million.

Greenbrier has lowered its global workforce by 3,500 employees. The company announced plans to suspend earlier issued guidance and cut overhead costs.

Equities Trading UP

Akers Biosciences, Inc. (NASDAQ: AKER) shares shot up 76% to $8.24. Akers Biosciences filed amendment to $25 million offering of stock and debt securities. Akers Biosciences shares jumped around 147% on Monday following an update from the company regarding its COVID-19 vaccine development program.

Shares of Caleres, Inc. (NYSE: CAL) got a boost, shooting 57% to $6.61 after jumping 25% on Monday.

Sasol Limited (NYSE: SSL) shares were also up, gaining 55% to $3.93 amid hopes of production cuts by key producers to sustain prices, as well as positive economic sentiment on a potential leveling off of coronavirus cases in some regions.

Equities Trading DOWN

SeaChange International, Inc. (NASDAQ: SEAC) shares tumbled 20% to $2.89 after reporting weaker-than-expected Q4 results.

Shares of Chimera Investment Corporation (NYSE: CIM) were down 16% to $6.88 after the company reported a public offering of convertible senior notes.

BioNTech SE (NASDAQ: BNTX) was down, falling 15% to $44.88.

Commodities

In commodity news, oil traded up 2.9% to $26.84, while gold traded up 0.7% to $1,705.20.

Silver traded up 2.6% Tuesday to $15.56, while copper rose 3.8% to $2.302.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 rose 2.8 % the Spanish Ibex Index rose 3.6%, while Italy’s FTSE MIB Index climbed 4.4%. Meanwhile, the German DAX gained 4%, and the French CAC 40 rose 3.3% while UK shares rose 3 %.

Economics

The Johnson Redbook Retail Sales Index rose 0.9% during March versus February.

The IBD/TIPP Economic Optimism Index declined 6.2 points to a reading of 47.8 in April.

The number of US job openings fell by 130,000 to 6.882 million in February, versus a revised 7.012 million in the earlier month.

Data on consumer credit for February will be released at 3:00 p.m. ET.

 

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