Market Overview

Mid-Morning Market Update: Markets Open Higher; General Electric Earnings Miss Views

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Following the market opening Wednesday, the Dow traded up 1.63% to 24495.43 while the NASDAQ rose 2.44% to 8817.60. The S&P also rose, gaining 1.93% to 2,918.60.

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 1,012,580 coronavirus cases with around 58,350 deaths. Spain confirmed a total of over 232,120 coronavirus cases with 23,820 deaths, while Italy reported a total of at least 201,500 confirmed cases and 27,350 deaths. In total, there were at least 3,127,510 cases of COVID-19 worldwide with over 217,560 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Communication services shares climbed 4.6% on Wednesday. Meanwhile, top gainers in the sector included AMC Entertainment Holdings, Inc. (NYSE: AMC), up 23%, and Spotify Technology S.A. (NYSE: SPOT), up 14%.

In trading on Wednesday, consumer staples shares fell 0.8%.

Top Headline

General Electric Company (NYSE: GE) reported weaker-than-expected earnings for its first quarter, while sales exceeded views.

GE reported quarterly earnings of $0.05 per share, beating analysts’ estimates of $0.08 per share. The company’s sales came in at $20.524 billion, exceeding the consensus view of $20.21 billion.

GE continued to evaluate strategic options to accelerate further reduction in the size of GE Capital.

Equities Trading UP

Capricor Therapeutics, Inc. (NASDAQ: CAPR) shares shot up 130% to $5.55 after the company reported that its new data from study of 6 critically-ill coronavirus patients showed 100% survival following treatment with its CAP-1002.

Shares of Brinker International, Inc. (NYSE: EAT) got a boost, shooting 29% to $24.65 after the company reported better-than-expected Q3 earnings.

Liberty Oilfield Services Inc. (NYSE: LBRT) shares were also up, gaining 25% to $4.50 after the company reported Q1 results.

Equities Trading DOWN

Creative Realities, Inc. (NASDAQ: CREX) shares tumbled 26% to $3.00. Creative Realities unveiled non-contact and AI-enabled temperature detection solution to assist businesses in safely reopening.

Shares of Blue Apron Holdings, Inc. (NYSE: APRN) were down 25% to $9.36 after the company reported worse-than-expected Q1 results. Blue Apron also filed for $75 million mixed shelf offering.

Fresh Del Monte Produce Inc. (NYSE: FDP) was down, falling 18% to $28.98 after the company reported downbeat Q1 results.

Commodities

In commodity news, oil traded up 13.5% to $14.00, while gold traded down 0.3% to $1,717.50.

Silver traded up 1.1% Wednesday to $15.34, while copper rose 0.3% to $2.3525.

Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 slipped 0.1%, the Spanish Ibex Index rose 0.8%, while Italy’s FTSE MIB Index climbed 0.4%. Meanwhile, the German DAX gained 0.4%, and the French CAC 40 slipped 0.2% while UK shares rose 0.9%.

Economics

The US economy contracted by an annual pace of 4.8% in the first, versus economists’ estimates for a 4.0% decline.

The pending home sales index fell 16.3% year-over-year in March 2020, versus a revised 9.3% rise in the prior month.

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

The Federal Open Market Committee will announce its policy decision at 2:00 p.m. ET.

The Fed Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET.

 

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