Market Overview

Mid-Afternoon Market Update: Dow Surges 100 Points; ScanSource Shares Slide Following Q4 Earnings

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Toward the end of trading Tuesday, the Dow traded up 0.37% to 28534.69 while the NASDAQ rose 1.13% to 11908.25. The S&P also rose, gaining 0.43% to 3515.27.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 6,031,280 cases with around 183,600 deaths. Brazil confirmed a total of over 3,908,270 COVID-19 cases with 121,380 deaths, while India reported a total of at least 3,691,160 confirmed cases and 65,280 deaths. In total, there were at least 25,506,750 cases of COVID-19 worldwide with over 851,090 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Materials shares gained 1.8% on Tuesday. Meanwhile, top gainers in the sector included Northern Dynasty Minerals Ltd. (NYSE: NAK), up 11%, and Venator Materials PLC (NYSE: VNTR), up 8%.

In trading on Tuesday, health care shares fell by 1.3%.

Top Headline

Zoom Video Communications Inc (NASDAQ: ZM) reported better-than-expected results for its second quarter and also issued a strong forecast.

Zoom reported quarterly adjusted earnings of $0.92 per share, surpassing analysts’ estimates of $0.45 per share. The company reported sales of $663.50 million versus expectations of $500.45 million.

Zoom is forecasting third-quarter revenue to come in a range of $685 million to $690 million. The company sees earnings per share hitting a range of 73 cents to 74 cents. Zoom updated its full-year guidance thanks to the strong quarter. It now sees full-year revenue hitting a range of $2.37 to $2.39 billion, a year-over-year increase of 281 to 284%.

 

Equities Trading UP

J.Jill Inc (NYSE: JILL) shares shot up 79% to $0.6883 after the company announced a transaction support agreement that would result in a waiver of any past non-compliance with the terms of the company's credit facilities.

Shares of Jounce Therapeutics, Inc. (NASDAQ: JNCE) got a boost, shooting 64% to $7.94 after the company and Gilead announced an exclusive license agreement for the JTX-1811 program. Gilead will make an upfront $85 million payment and $35 million equity investment.

Zoom Video Communications, Inc. (NASDAQ: ZM) shares were also up, gaining 39% to $453.17 after the company reported better-than-expected results for its second quarter and also issued a strong forecast.

 

Equities Trading DOWN

Applied UV, Inc. (NASDAQ: AUVI) shares tumbled 28% to $8.40. Applied UV shares gained 132% on Monday after the company prices its IPO at $5 per share.

Shares of ScanSource, Inc. (NASDAQ: SCSC) were down 12% to $21.62 after the company reported worse-than-expected Q4 earnings.

GreenPower Motor Company Inc. (NASDAQ: GP) was down, falling 10% to $17.74. GreenPower Motor reported Q1 sales of $2.27 million.

Commodities

In commodity news, oil traded up 0.9% to $42.99, while gold traded down 0.1% to $1,978.30.

Silver traded up 0.1% Tuesday to $28.61, while copper fell 1.3% to $3.023.

Euro zone

European shares closed mostly lower today. The eurozone’s STOXX 600 fell 0.35%, the Spanish Ibex Index fell 0.18%, while Italy’s FTSE MIB Index slipped 0.2%. Meanwhile, the German DAX 30 gained 0.22%, French CAC 40 slipped 0.18% and London’s FTSE 100 fell 1.7%.

The eurozone manufacturing index recorded growth for the second straight month during August. The IHS Markit French manufacturing PMI increased to 49.8 in August versus a preliminary reading of 49, while German manufacturing index slipped to 52.2 from a preliminary reading of 53.

Economics

The IHS Markit manufacturing PMI slipped to 53.1 in August versus a preliminary reading of 53.6.

The ISM manufacturing PMI climbed to 56 in August versus 54.2 in July.

US construction spending rose 0.1% in July, versus a revised 0.5% decline in June.

 

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