Mid-Morning Market Update: Markets Open Higher; PepsiCo Profit Beats Estimates

Following the market opening Tuesday, the Dow traded up 1.01% to 24378.62 while the NASDAQ rose 0.28% to 8754.47. The S&P also rose, gaining 0.90% to 2,904.25.

The U.S. is the new epicenter of the coronavirus pandemic with the highest number of cases and deaths around the world. U.S. reported a total of 988,460 coronavirus cases with around 56,250 deaths. Spain confirmed a total of over 229,420 coronavirus cases with 23,520 deaths, while Italy reported a total of at least 199,410 confirmed cases and 26,970 deaths. In total, there were at least 3,053,960 cases of COVID-19 worldwide with over 211,520 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Financial shares climbed 2.8% on Tuesday. Meanwhile, top gainers in the sector included World Acceptance Corporation WRLD, up 13%, and TCF Financial Corporation TCF, up 13%.

In trading on Tuesday, health care shares fell 1%.

Top Headline

PepsiCo, Inc. PEP reported stronger-than-expected earnings and sales for its first quarter.

PepsiCo reported quarterly earnings of $1.07 per share, beating analysts’ estimates of $1.03 per share. The company’s sales came in at $13.88 billion, exceeding the consensus view of $13.21 billion.

PepsiCo and Bang Energy reported a distribution deal for North America.

Equities Trading UP

Syndax Pharmaceuticals, Inc. SNDX shares shot up 51% to $17.33 after the company presented positive preclinical and initial clinical data for SNDX-5613, its potent, highly selective oral menin inhibitor, with the data suggesting the investigational asset can induce response in patients with genetically-defined acute leukemias.

Shares of RTI Surgical Holdings, Inc. RTIX got a boost, shooting 57% to $3.17. RTI Surgical reported second amendment to equity purchase agreement.

NGL Energy Partners LP NGL shares were also up, gaining 31% to $4.2499 after the partnership re-confirmed its fiscal year 2020 forecast and approved quarterly distributions.

Equities Trading DOWN

Yield10 Bioscience, Inc. YTEN shares tumbled 18% to $6.50. Yield10 Bioscience shares jumped 62% on Monday after the company obtained positive response from USDA-APHIS On regulatory status of its CRISPR Genome-edited C3007 trait in Camelina.

Shares of Avinger, Inc. AVGR were down 27% to $0.248 after the company priced its $3.15 million underwritten public offering of common stock.

Blueprint Medicines Corporation BPMC was down, falling 17% to $59.03 after the company's Phase 3 VOYAGER trial of Avapritinib did not meet its primary endpoint.

Commodities


In commodity news, oil traded down 10% to $11.50, while gold traded down 0.1% to $1,722.20.

Silver traded down 0.4% Tuesday to $15.155, while copper rose 0.1% to $2.3505.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 gained 1.5%, the Spanish Ibex Index rose 0.9%, while Italy’s FTSE MIB Index climbed 2.5%. Meanwhile, the German DAX gained 1.4%, and the French CAC 40 rose 1.3% while UK shares rose 1.6%.

Economics

The Federal Open Market Committee begins its two-day policy meeting today.

U.S. goods deficit increased to $64.22 billion in March, versus $59.9 billion in the prior month.

U.S. wholesale inventories fell 1% in March.

The Johnson Redbook Retail Sales Index for the latest week is scheduled for release at 8:55 a.m. ET.

The S&P CoreLogic Case-Shiller home price index rose 3.5% year-over-year in February.

The Conference Board’s consumer confidence index fell to 86.90 in April, versus prior revised reading of 118.80.

The Richmond Fed manufacturing index dipped to -53.00 in April, versus prior reading of 2.00.

The Treasury is set to auction 7-year notes at 1:00 p.m. ET.