Mid-Morning Market Update: Markets Gain; Kroger Beats Q2 Estimates

Following the market opening Friday, the Dow traded up 0.57% to 27,691.98 while the NASDAQ rose 0.24% to 10,945.57. The S&P also rose, gaining 0.40% to 3,352.41.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 6,397,540 cases with around 191,800 deaths. India confirmed a total of at least 4,562,410 confirmed cases and 76,270 deaths, while Brazil reported over 4,238,440 COVID-19 cases with 129,520 deaths. In total, there were at least 28,200,030 cases of COVID-19 worldwide with over 910,130 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Industrial shares climbed 1.1% on Friday. Meanwhile, top gainers in the sector included Quhuo Limited QH, up 8%, and AeroVironment, Inc. AVAV, up 4%.

In trading on Friday, utilities shares fell 0.3%.

Top Headline

Kroger Co RH reported stronger-than-expected results for its second quarter.

Kroger reported quarterly earnings of $0.73 per share, which exceeded analyst expectations of $0.55 per share. The company reported quarterly sales of $30.49 billion, which also surpassed estimates of $29.95 billion.

The company raised its adjusted free cash flow guidance from $1.6 billion-$1.8 billion to $2.5 billion-$2.7 billion, and also announced a $1 billion buyback of its common stock. Kroger also said it expects FY20 adjusted earnings of $3.20 to $3.30 per share.

Equities Trading UP

Biofrontera AG BFRA shares shot up 34% to $9.91 after the company reported a mutual agreement with Wilhelm KT Zours and Deutsche Balaton on key elements of mediation deal.

Shares of Laureate Education, Inc. LAUR got a boost, shooting 19% to $14.50. Adtalem reported the purchase of Walden University from Laureate Education for $1.48 billion in cash

TAT Technologies Ltd. TATT shares were also up, gaining 15% to $4.4493.

Equities Trading DOWN

Creatd Inc CRTD shares tumbled 53% to $3.51 after the company reported the pricing of its underwritten public offering of 1,725,000 units of securities at $4.50 per unit.

Shares of Evofem Biosciences, Inc. EVFM were down 19% to $2.205 after the company's CEO sold 122,500 shares at an average price of $3.26.

Amyris, Inc. AMRS was down, falling 17% to $2.62 after LAVVAN filed an $881 million lawsuit against the company for patent infringement and trade secret misappropriation.

Commodities


In commodity news, oil traded up 0.1% to $37.35, while gold traded down 0.6% to $1,953.50.

Silver traded down 0.9% Friday to $27.055, while copper rose 1.5% to $3.0425.

Euro zone

European shares were mostly lower today. The eurozone’s STOXX 600 gained 0.1%, the Spanish Ibex Index fell 0.7%, while Italy’s FTSE MIB Index slipped 0.1%. Meanwhile, the German DAX 30 declined 0.1%, French CAC 40 fell 0.1% and London’s FTSE 100 rose 0.5%.

The U.K. economy expanded by 6.6%, while industrial production rose 5.2% in July. Spanish consumer prices declined for the fifth consecutive month, falling 0.5% year-over-year in August.

Economics

Annual inflation rate rose to 1.3% in August versus 1% in July.

The Baker Hughes North American rig count report for the recent week is scheduled for release at 1:00 p.m. ET.

The U.S. Treasury budget statement for August will be released at 2:00 p.m. ET.