Market Overview

Mid-Afternoon Market Update: Nasdaq Tumbles 200 Points; Satsuma Pharmaceuticals Shares Plunge

Share:

Toward the end of trading Thursday, the Dow traded down 1.32% to 27572.71 while the NASDAQ fell 1.83% to 10,937.98. The S&P also fell, dropping 1.61% to 3,344.11.

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

Materials shares slipped by just 0.5% on Thursday. Meanwhile, top gainers in the sector included Kraton Corporation (NYSE: KRA), up 16%, and CEMEX, S.A.B. de C.V. (NYSE: CX), up 9%.

In trading on Thursday, energy shares fell 2.5%.

Top Headline

RH (NYSE: 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. (NASDAQ: YTEN) shares shot up 40% to $6.08 after HC Wainwright & Co. initiated coverage on the company's stock with a Buy rating and announced a $25 price target.

Shares of RH (NYSE: RH) got a boost, shooting 21% to $388.70 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 (NASDAQ: VRTU) shares were also up, gaining 24% to $50.38 after Baring Private Equity Asia announced plans to acquire the company for $51.35 per share in cash.

Equities Trading DOWN

Satsuma Pharmaceuticals, Inc. (NASDAQ: STSA) shares tumbled 74% to $6.11 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. (NASDAQ: FCEL) were down 17% to $2.19 after the company reported a wider-than-expected Q3 loss.

Spero Therapeutics, Inc. (NASDAQ: SPRO) was down, falling 19% to $10.37 after reporting an 8 million share common stock offering.

Commodities

In commodity news, oil traded down 1.6% to $37.45, while gold traded up 0.4% to $1,963.00.

Silver traded up 0.2% Thursday to $27.14, while copper fell 2% to $2.99.

Euro zone

European shares closed 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.

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

 

Related Articles (FCEL + CX)

View Comments and Join the Discussion!

Posted-In: Earnings News Penny Stocks Eurozone Commodities Global Intraday Update Markets