Market Overview

Mid-Afternoon Market Update: Dow Tumbles Over 900 Points; Beyond Meat Shares Plunge On Earnings Miss

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Toward the end of trading Friday, the Dow traded down 3.53% to 24856.01 while the NASDAQ fell 2.29% to 8370.04. The S&P also fell, dropping 2.97% to 2890.26. Coronavirus cases continued to rise outside China. South Korea confirmed 256 new coronavirus cases, while China reported an additional 327 new cases. In Italy, total number of infections surged to 650.

Leading and Lagging Sectors

Energy shares slipped by just 0.9% on Friday. Meanwhile, top gainers in the sector included Penn Virginia Corporation (NASDAQ: PVAC), up 21%, and Diamond Offshore Drilling, Inc. (NYSE: DO), up 13%.

In trading on Friday, utilities shares fell 4.4%.

Top Headline

Foot Locker, Inc. (NYSE: FL) reported better-than-expected earnings for its fourth quarter, while sales missed estimates.

Foot Locker reported fourth-quarter earnings of $1.63 per share on Friday, which beat the analyst consensus estimate of $1.60 per share. The company reported quarterly sales of $2.221 billion, which missed the analyst consensus estimate of $2.25 billion.

Foot Locker reported fourth-quarter comparable-store sales decreased 1.6%.

 

Equities Trading UP

Altimmune, Inc. (NASDAQ: ALT) shares shot up 106% to $3.62. Altimmune reported completion of first development milestone toward a single-dose intranasal coronavirus vaccine.

Shares of Allied Healthcare Products, Inc. (NASDAQ: AHPI) got a boost, shooting 80% to $27.99 after climbing around 322% on Thursday. The company manufactures emergency medical supplies and respiratory devices, including 'mass casualty' products, and has attracted investor interest amid the coronavirus outbreak.

iBio, Inc. (NYSE: IBIO) shares were also up, gaining 182% to $2.44 after jumping around 159% on Thursday. iBio disclosed a $100 million mixed securities offering.

Equities Trading DOWN

Glaukos Corporation (NYSE: GKOS) shares tumbled 30% to $42.91 after the company Q4 results. JP Morgan downgraded Glaukos from Overweight to Neutral and lowered the price target from $65 to $55.

Shares of Big Lots, Inc. (NYSE: BIG) were down 29% to $15.90 after the company reported worse-than-expected Q4 results. The company also issued Q1 and FY20 earnings guidance below estimates. JP Morgan downgraded Big Lots from Neutral to Underweight and lowered the price target from $31 to $14.

Beyond Meat, Inc. (NASDAQ: BYND) was down, falling 18% to $87.15. Beyond Meat reported weaker-than-expected earnings for its fourth quarter, while sales exceeded views.

Commodities

In commodity news, oil traded down 5.1% to $44.70, while gold traded down 4.1% to $1,575.70.

Silver traded down 6.9% Friday to $16.515, while copper fell 1.5% to $2.532.

Euro zone

European shares closed lower today. The eurozone’s STOXX 600 fell 3.54% the Spanish Ibex Index dropped 2.92%, while Italy’s FTSE MIB Index declined 3.58% Meanwhile, the German DAX dropped 3.86%, and the French CAC 40 fell 3.38% while UK shares fell 3.18%.

Economics

The US trade deficit on goods shrank to $65.5 billion in January, versus $68.7 billion in the prior month. Imports slipped 2.2%, while exports declined 1.0%.

US wholesale inventories fell 0.2% in January, versus a revised 0.3% decline in the prior month.

Personal spending increased 0.2% in January, while personal income climbed 0.6%.

The Chicago PMI climbed to 49 in February, versus a prior reading of 42.9.

The University of Michigan consumer sentiment index rose to 101 in February, versus a preliminary reading of 100.9.

The total number of active U.S. oil rigs slipped by 1 to 678 rigs this week, Baker Hughes Inc reported.

Data on farm prices for January will be released at 3:00 p.m. ET.

 

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