Mid-Day Market Update: Dow Falls 50 Points; Virtusa Shares Spike Higher

Midway through trading Thursday, the Dow traded down 0.18% to 27,889.42 while the NASDAQ rose 0.35% to 11,180.98. The S&P also fell, dropping 0.08% to 3,396.20.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 6,362,440 cases with around 190,870 deaths. India confirmed a total of at least 4,465,860 confirmed cases and 75,060 deaths, while Brazil reported over 4,197,880 COVID-19 cases with 128,530 deaths. In total, there were at least 27,886,820 cases of COVID-19 worldwide with over 904,100 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Consumer discretionary shares climbed 1.2% on Thursday. Meanwhile, top gainers in the sector included RH RH, up 23%, and Waitr Holdings Inc. WTRH, up 19%.

In trading on Thursday, energy shares fell 1.4%.

Top Headline

RH RH, on Wednesday afternoon, reported stronger-than-expected results for its second quarter.

RH reported quarterly earnings of $4.90 per share, which exceeded analyst expectations of $3.40 per share. The company reported quarterly sales of $709.70 million, which also surpassed estimates of $704.05 million.

The company also said it expects to reach 20% adjusted operating margin in FY20.

Equities Trading UP

Yield10 Bioscience, Inc. YTEN shares shot up 55% to $6.75 after HC Wainwright & Co. initiated coverage on the company's stock with a Buy rating and announced a $25 price target.

Shares of RH RH got a boost, shooting 23% to $395.48 after the company reported stronger-than-expected results for its second quarter. The company also said it expects to reach 20% adjusted operating margin in FY20.

Virtusa Corporation VRTU shares were also up, gaining 24% to $50.28 after Baring Private Equity Asia announced plans to acquire the company for $51.35 per share in cash.

Equities Trading DOWN

Satsuma Pharmaceuticals, Inc. STSA shares tumbled 67% to $7.59 following an adverse clinical trial readout. Satsuma, which went public late last year, announced negative topline results Thurday from the Phase 3 EMERGE study that is evaluating STS101 powder as an acute treatment option for migraines. At 3.9mg and 5.2mg dosage strengths, STS101 did not meet the co-primary endpoints of freedom from pain and the most bothersome symptomat two hours post-administration with statistical significance, the company said.

Shares of FuelCell Energy, Inc. FCEL were down 19% to $2.14 after the company reported a wider-than-expected Q3 loss.

Superconductor Technologies Inc. SCON was down, falling 23% to $2.68. Superconductor Technologies’ 1-for-10 reverse stock split came into effect today.

Commodities


In commodity news, oil traded down 0.6% to $37.81, while gold traded up 0.7% to $1,968.80.

Silver traded up 1.1% Thursday to $27.385, while copper fell 1.4% to $3.0095.

Euro zone

European shares were mostly lower today after the ECB held interest rates as expected. The eurozone’s STOXX 600 slipped 0.59%, the Spanish Ibex Index fell 0.31%, while Italy’s FTSE MIB Index climbed 0.25%. Meanwhile, the German DAX 30 declined 0.21%, French CAC 40 fell 0.38% and London’s FTSE 100 fell 0.16%.

Economics

U.S. initial jobless claims came in unchanged at 884,000 for the latest week, versus a revised 884,000 in the earlier week.

The Producer Price Index rose 0.3% for August, versus analysts’ estimates for a 0.2% increase.

U.S. wholesale inventories fell 0.3% for July, versus analysts’ expectations for a 0.1% decline.

Domestic supplies of natural gas gained 70 billion cubic feet for the week ended September 4, the U.S. Energy Information Administration reported. However, analysts expected a rise of 64 billion cubic feet.

U.S. crude inventories increased 2 million barrels for the week ended September 4, the Energy Information Administration reported. However, analysts were projecting a decline of 500,000 barrels. Crude stocks at the Cushing, Oklahoma, hub rose around 1.9 million barrels last week. Gasoline supply slipped 3 million barrels for the week, while distillate stockpiles dropped 1.7 million barrels.

The Treasury will auction 30-year bonds at 1:00 p.m. ET.

Data on money supply for the recent week will be released at 4:30 p.m. ET.