Mid-Day Market Update: Avid Bioservices Falls Following Q1 Earnings; Endo International Shares Jump

Midway through trading Friday, the Dow traded up 0.34% to 26,818.68 while the NASDAQ rose 0.05% to 8,120.85. The S&P also rose, gaining 0.16% to 2,980.91.

Leading and Lagging Sectors

Materials shares climbed 0.5% on Friday. Meanwhile, top gainers in the sector included Ferroglobe PLC GSM, up 7%, and Hecla Mining Company HL, up 4%.

In trading on Friday, communication services shares fell 0.3%.

Top Headline

Genesco Inc. GCO reported better-than-expected earnings for its second quarter and raised FY20 EPS guidance. However, Genesco’s sales misses estimates.

Genesco reported second-quarter earnings of 15 cents per share, which beat the analyst consensus estimate by 17 cents. The company reported quarterly sales of $486.573 million, which missed the analyst consensus estimate of $487.93 million.

Genesco raised fiscal year 2020 EPS guidance from $3.35-$3.75 to $3.80-$4.20 versus the $3.67 estimate.

Equities Trading UP

Endo International plc ENDP shares shot up 30% to $3.0650 after the company announced it has submitted a biologics license application to the FDA for collagenase clostridium histolyticum for the treatment of cellulite in the buttocks.

Shares of DocuSign, Inc. DOCU got a boost, shooting up 19% to $54.86 after the company reported better-than-expected Q2 sales results.

Ekso Bionics Holdings, Inc. EKSO shares were also up, gaining 29% to $0.7251 after Cantor Fitzgerald initiated coverage on the stock with an Overweight rating and a price target of $1 per share.

Equities Trading DOWN

Domo, Inc. DOMO shares tumbled 35% to $16.39 after the company issued Q3 and FY20 EPS and sales guidance below analyst estimates. Credit Suisse also downgraded the stock from Outperform to Neutral and lowered the price target from $45 to $20.

Shares of Avid Bioservices, Inc. CDMO were down 19% to $5.69 after the company reported worse-than-expected Q1 EPS results.

Arcadia Biosciences, Inc. RKDA was down, falling 9% to $6.87 after the company announced a 1.319 million share common stock offering at $7.5825 per share.

Commodities

In commodity news, oil traded down 0.6% to $55.98, while gold traded up 0.3% to $1,529.30.

Silver traded up 0.2% Friday to $18.84, while copper fell 0.3% to $2.633.

Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 climbed 0.32%, the Spanish Ibex Index fell 0.03%, while Italy’s FTSE MIB Index fell 0.04%. Meanwhile, the German DAX rose 0.54% and the French CAC 40 climbed 0.19% while UK shares rose 0.15%.

Economics

The U.S. economy added 130,000 new jobs in August. However, economists were expecting a gain of 158,000 jobs. The unemployment rate was unchanged at 3.7% for August.

The Baker Hughes North American rig count report for the recent week will be released at 1:00 p.m. ET.