Market Overview

Mid-Morning Market Update: Markets Open Higher; Deutsche Bank Projects To Report Strong Q1 Results

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Following the market opening Monday, the Dow traded up 0.68% to 23936.74 while the NASDAQ rose 1.25% to 8742.71. The S&P also rose, gaining 0.95% to 2,863.80.

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 965,930 coronavirus cases with around 54,870 deaths. Spain confirmed a total of over 236,190 coronavirus cases with 23,520 deaths, while Italy reported a total of at least 197,670 confirmed cases and 26,640 deaths. In total, there were at least 2,994,690 cases of COVID-19 worldwide with over 207,270 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Financial shares climbed 1.5% on Monday. Meanwhile, top gainers in the sector included CURO Group Holdings Corp. (NYSE: CURO), up 16%, and Sterling Bancorp, Inc. (NYSE: SBT), up 9%.

In trading on Monday, energy shares fell 2.2%.

Top Headline

Deutsche Bank AG (NYSE: DB) on Sunday said its Q1 results would surpass analysts’ estimates despite the negative impact of the coronavirus pandemic.

In an unexpected statement ahead of its earnings report scheduled on Wednesday, the German bank said it estimates a revenue of $6.9 billion in Q1, about 12.3% higher than the $6.2 billion consensus of analysts.

Deutsche Bank expects net income in the quarter to be $71.6 million and pre-tax group profit to be $223.6 million.

Equities Trading UP

Yield10 Bioscience, Inc. (NASDAQ: YTEN) shares shot up 55% to $7.97. Yield10 Bioscience obtained positive response from USDA-APHIS On regulatory status of its CRISPR Genome-edited C3007 trait in Camelina.

Shares of Vaxart, Inc. (NASDAQ: VXRT) got a boost, shooting 28% to $3.87 after gaining 13% on Friday.

Avadel Pharmaceuticals plc (NASDAQ: AVDL) shares were also up, gaining 30% to $12.73 after the company announced its Phase 3 REST-ON trial for FT218 in patients with Narcolepsy met its 3 efficacy endpoints.

Equities Trading DOWN

Verastem, Inc. (NASDAQ: VSTM) shares tumbled 42% to $2.41 after the company provided response rate data from its phase 1 study of VS-6766 in mutant tumors.

Shares of Chesapeake Energy Corporation (NYSE: CHK) were down 31% to $27.49 after surging over 45% on Friday.

CNX Midstream Partners LP (NYSE: CNXM) was down, falling 33% to $8.01 after the company reported worse-than-expected Q1 results. The company also lowered its 2020 EBITDA guidance and cut its quarterly dividend.

Commodities

In commodity news, oil traded down 16.8% to $14.10, while gold traded down 0.1% to $1,733.80.

Silver traded up 0.3% Monday to $15.305, while copper rose 0.6% to $2.3515.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 gained 1.7%, the Spanish Ibex Index rose 1.8%, while Italy’s FTSE MIB Index climbed 2.6%. Meanwhile, the German DAX gained 2.5%, and the French CAC 40 rose 2% while UK shares rose 1.7%.

Economics

The Dallas Fed manufacturing index for April is scheduled for release at 10:30 a.m. ET.

The Treasury is set to auction 6-month bills and 2-year notes at 11:30 a.m. ET.

The Treasury will auction 3-month bills and 5-year notes at 1:00 p.m. ET.

 

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