Market Overview

Mid-Morning Market Update: Markets Open Lower; Amazon Posts Mixed Q1 Results

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Following the market opening Friday, the Dow traded down 1.94% to 23873.31 while the NASDAQ fell 2.08% to 8,704.96. The S&P also fell, dropping 2.12% to 2,850.68.

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 1,070,030 coronavirus cases with around 63,010 deaths. Spain confirmed a total of over 213,430 coronavirus cases with 24,540 deaths, while Italy reported a total of at least 205,460 confirmed cases and 27,960 deaths. In total, there were at least 3,271,960 cases of COVID-19 worldwide with over 233,700 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Communication services shares rose 0.2% on Friday. Meanwhile, top gainers in the sector included Charter Communications, Inc. (NASDAQ: CHTR), up 4%, and Bandwidth Inc. (NASDAQ: BAND), up 7%.

In trading on Friday, energy shares fell 4.2%.

Top Headline

Amazon.com, Inc. (NASDAQ: AMZN) reported downbeat earnings for its first quarter, while sales exceeded estimates.

Amazon reported quarterly earnings of $5.01 per share on Thursday, which missed the analyst consensus estimate of $6.25. The company reported quarterly sales of $75.5 billion, which beat the analyst consensus estimate of $73.610 billion.

Amazon said it expects second-quarter sales $75 billion to $81 billion. The company plans to spend $4 billion on coronavirus-related expenses.

Equities Trading UP

Medigus Ltd. (NASDAQ: MDGS) shares shot up 87% to $4.38 after the company announced it has received its first commercial order for coronavirus testing kits.

Shares of Milestone Pharmaceuticals Inc. (NASDAQ: MIST) got a boost, shooting 42% to $4.27 after rising over 14% on Thursday.

Myomo, Inc. (NYSE: MYO) shares were also up, gaining 38% to $5.59.

Equities Trading DOWN

Pixelworks, Inc. (NASDAQ: PXLW) shares tumbled 25% to $3.4506 after the company reported weaker-than-expected Q1 sales.

Shares of Hub Group, Inc. (NASDAQ: HUBG) were down 19% to $38.90 after the company reported downbeat Q1 results. Loop Capital downgraded Hub Group from Buy to Hold and lowered the price target from $58 to $52.

GasLog Partners LP (NYSE: GLOP) was down, falling 18% to $4.9082 after declining over 14% on Thursday.

Commodities

In commodity news, oil traded up 0.1% to $18.85, while gold traded down 0.5% to $1,685.70.

Silver traded down 0.1% Friday to $14.96, while copper fell 2.1% to $2.2945.

Euro zone

In European shares, UK shares fell 1.9%.

Economics

The IHS Markit manufacturing PMI slipped to 36.1 in April, versus March's final reading of 48.5.

U.S. construction spending increased 0.9% to an annual rate of $1.36 trillion in March, versus a revised 2.5% declined in the prior month.

The ISM manufacturing index dipped to 41.5 in April, versus a reading of 49.1 in the prior month.

The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.

 

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