Market Overview

Mid-Morning Market Update: Markets Open Higher; Sysco Misses Q3 Views

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Following the market opening Tuesday, the Dow traded up 1.25% to 24046.81 while the NASDAQ rose 1.61% to 8,850.63. The S&P also rose, gaining 1.8% to 2,894.

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 1,180,630 coronavirus cases with around 68,930 deaths. Spain confirmed a total of over 218,010 coronavirus cases with 25,420 deaths, while Italy reported a total of at least 211,930 confirmed cases and 29,070 deaths. In total, there were at least 3,601,760 cases of COVID-19 worldwide with over 251,910 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Energy shares climbed by 2.5% on Tuesday. Meanwhile, top gainers in the sector included Black Stone Minerals, L.P. (NYSE: BSM), up 10%, and Noble Midstream Partners LP (NASDAQ: NBLX), up 8%.

In trading on Tuesday, consumer staples shares rose by just 0.2%.

Top Headline

SYSCO Corporation (NYSE: SYY) reported downbeat results for its third quarter.

SYSCO reported quarterly earnings of $0.45 per share, which missed the analyst consensus estimate of $0.60. The company reported quarterly sales of $13.699 billion, which missed the analyst consensus estimate of $14.09 billion.

 

Equities Trading UP

Portola Pharmaceuticals, Inc. (NASDAQ: PTLA) shares shot up 129% to $17.75 after the company announced it will be acquired by Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) for $18 per share in cash.

Shares of Genprex, Inc. (NASDAQ: GNPX) got a boost, shooting 82% to $4.21 after the company reported exclusive global patent and technology license deal for combo of its TUSC2 gene therapy with Immunotherapies.

Akebia Therapeutics, Inc. (NASDAQ: AKBA) shares were also up, gaining 36% to $11.79 after the company announced the results from its Phase 3 program of Vadadustat for treatment of Anemia achieved primary efficacy and cardiovascular safety endpoints. The company reported upbeat Q1 results.

Equities Trading DOWN

Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) shares tumbled 19% to $11.70 after the company reported a $350 million common stock offering. Norwegian Cruise's NCL Corp. reported a $400 million investment by L Catteron.

Shares of Fulgent Genetics, Inc. (NASDAQ: FLGT) were down 20% to $13.24 following downbeat Q1 earnings.

Hertz Global Holdings, Inc. (NYSE: HTZ) was down, falling 17% to $2.99 as multiple reports suggested the company is nearing a bankruptcy filing. The car rental company has hired an additional advisor to help prepare for a planned bankruptcy filing, according to The Wall Street Journal.

Commodities

In commodity news, oil traded up 10.7% to $22.58, while gold traded down 0.5% to $1,704.50.

Silver traded up 0.4% Tuesday to $14.855, while copper rose 0.7% to $2.3275.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 gained 1.5%, the Spanish Ibex Index rose 0.6%, while Italy’s FTSE MIB Index rose 0.8%. Meanwhile, the German DAX gained 1.4%, and the French CAC 40 rose 1.4% while UK shares rose 1.4%.

Economics

The US trade deficit increased to $44.4 billion in March, versus a revised $39.8 billion gap in the prior month. Exports fell 9.6% to $187.7 billion, while imports fell 6.2% to $232.2 billion.

The IHS Markit services PMI slipped to 26.7 in April, versus a preliminary estimate of 27.0.

The ISM non-manufacturing index dropped to 41.8 in April, versus a reading of 52.5 in the prior month.

Federal Reserve Bank of St. Louis President James Bullard will speak at 2:00 p.m. ET.

Federal Reserve Bank of Atlanta President Raphael Bostic is set to speak at 2:00 p.m. ET.

 

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