Market Overview

Mid-Morning Market Update: Markets Open Higher; Adobe Earnings Top Expectations

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Following the market opening Friday, the Dow traded up 2.71% to 25809.51 while the NASDAQ rose 2.50% to 9,729.78. The S&P also rose, gaining 2.51% to 3,077.55.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 2,023,340 cases with around 113,820 deaths. Brazil confirmed a total of over 802,820 COVID-19 cases with 40,910 deaths, while Russia reported a total of at least 510,760 confirmed cases and 6,700 deaths. In total, there were at least 7,534,320 cases of COVID-19 worldwide with over 421,850 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Energy shares climbed 3.8% on Friday. Meanwhile, top gainers in the sector included G. Nabors Industries Ltd. (NYSE: NBR), up 30%, and Borr Drilling Limited (NYSE: BORR), up 29%.

In trading on Friday, consumer staples shares rose by just 0.6%.

Top Headline

Adobe Inc (NASDAQ: ADBE) reported upbeat earnings for its second quarter, while sales fell short of expectations. The company also issued downbeat guidance for the third quarter.

Adobe posted Q2 adjusted earnings of $2.45 per share, beating analysts’ estimates of $2.33 per share. The company reported quarterly sales of $3.13 billion, missing expectations of $3.16 billion.

Adobe said it expects Q3 adjusted EPS of $2.40 on sales of $3.15 billion. Analysts were projecting EPS of $2.46 on sales of $3.28 billion.

Equities Trading UP

Yunhong CTI Ltd. (NASDAQ: CTIB) shares shot up 186% to $6.49 following an amended 13D filing from LF International which disclosed a 56.9% stake in the company.

Shares of KBS Fashion Group Limited (NASDAQ: KBSF) got a boost, shooting 53% to $3.37.

Hertz Global Holdings, Inc. (NYSE: HTZ) shares were also up, gaining 56% to $3.21. Hertz Global wants to take advantage of a spike in its stock price registered early this week, selling up to $1 billion in shares.

Equities Trading DOWN

Wah Fu Education Group Limited (NASDAQ: WAFU) shares tumbled 26% to $5.28 after surging 218% on Thursday.

Shares of RF Industries, Ltd. (NASDAQ: RFIL) were down 12% to $5.15 after the company reported downbeat Q2 sales.

Tarena International, Inc. (NASDAQ: TEDU) was down, falling 23% to $2.09 after gaining over 12% on Thursday.

Commodities

In commodity news, oil traded up 0.3% to $36.44, while gold traded up 0.3% to $1,744.20.

Silver traded down 0.7% Friday to $17.77, while copper rose 1% to $2.6135.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 rose 1.10%, the Spanish Ibex Index rose 1%, while Italy’s FTSE MIB Index gained 1.1%. Meanwhile, the German DAX 30 gained 0.8%, French CAC 40 rose 1.7% and UK shares rose 1.1%.

Economics

US import prices rose 1% in May after a 2.6% decline in the prior month. However, export prices gained 0.5% in May following a 3.3% drop in April.

The University of Michigan's consumer sentiment index climbed to 78.9 in June versus a reading of 72.3 in May.

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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