Market Overview

Mid-Morning Market Update: Markets Open Lower; Bank of America Profit Misses Views

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Following the market opening Wednesday, the Dow traded down 2.89% to 23,258.44 while the NASDAQ fell 2.11% to 8,336.48. The S&P also fell, dropping 2.80% to 2,766.36.

The U.S. is the epicenter of the coronavirus pandemic with the highest number of cases and deaths around the world. U.S. reported a total of 609,680 coronavirus cases with around 26,050 deaths. Spain confirmed a total of over 177,630 coronavirus cases with 18,570 deaths, while Italy reported a total of at least 162,480 confirmed cases and 21,060 deaths. In total, there were at least 1,997,320 cases of COVID-19 worldwide with over 127,600 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Consumer staples shares slipped by just 1.3% on Wednesday. Meanwhile, top gainers in the sector included SpartanNash Company (NASDAQ: SPTN), up 3%, and The Clorox Company (NYSE: CLX), up 1.5%.

In trading on Wednesday, energy shares dipped 5.3%.

Top Headline

Bank of America Corp (NYSE: BAC) reported weaker-than-expected earnings for its first quarter, while sales exceeded views.

Bank of America posted quarterly earnings of $0.40 per share, missing analysts’ estimates of $0.48 per share. Its sales came in at $22.80 billion, exceeding expectations of $22.76 billion.

Equities Trading UP

ShiftPixy, Inc. (NASDAQ: PIXY) shares shot up 56% to $7.80 following recent press release highlighting company’s efforts to work with restaurants across the US to deploy current staff as delivery drivers.

Shares of Applied DNA Sciences, Inc. (NASDAQ: APDN) got a boost, shooting 47% to $6.71. Applied DNA Sciences said it has completed design, qualification, production and shipment of five COVID-19 vaccine candidates to Italy-based Takis Biotech to start preclinical testing immediately. The vaccine candidates, according to the company, were produced by its proprietary PCR-based Linear DNA manufacturing systems.

Interpace Biosciences, Inc. (NASDAQ: IDXG) shares were also up, gaining 25% to $6.00 after Janney Capital initiated coverage on the stock with a Buy rating.

Equities Trading DOWN

Chesapeake Energy Corporation (NYSE: CHK) shares tumbled 34% to $17.34.

Shares of Independence Contract Drilling, Inc. (NYSE: ICD) were down 26% to $8.03 after declining 17% on Tuesday.

Top Ships Inc. (NASDAQ: TOPS) was down, falling 27% to $0.2048 after the company priced its common stock offering at $0.18 per share.

Commodities

In commodity news, oil traded down 2.1% to $19.69, while gold traded down 1.1% to $1,749.40.

Silver traded down 2.3% Wednesday to $15.76, while copper fell 1.9% to $2.285.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 1.8%, the Spanish Ibex Index fell 2.6%, while Italy’s FTSE MIB Index fell 2.3%. Meanwhile, the German DAX dropped 2.1%, and the French CAC 40 fell 1.8% while UK shares fell 2.3%.

Economics

U.S. retail sales dropped 8.7% in March, versus a revised 0.4% decline in February.

The New York Empire State manufacturing index dipped 56.7 points to a reading of -78.2 in April.

U.S. industrial production dropped 5.4% in March, versus market estimates of a 4% decline.

U.S. business inventories declined 0.4% in February, versus a revised 0.3% fall in January.

The NAHB housing market index declined to 30 in April, missing analysts’ expectations of 55.

The Energy Information Administration’s weekly report on petroleum inventories in the U.S. is scheduled for release at 10:30 a.m. ET.

Federal Reserve Bank of Atlanta President Raphael Bostic is set to speak at 1:00 p.m. ET.

The Federal Open Market Committee will release its latest Beige Book report at 2:00 p.m. ET.

The Treasury International Capital report for February will be released at 4:00 p.m. ET.

 

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