Market Overview

Mid-Morning Market Update: Markets Open Higher; Micron Issues Weak Earnings Forecast

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Following the market opening Wednesday, the Dow traded up 1.29% to 27805.50 while the NASDAQ rose 0.95% to 11,190.17. The S&P also rose, gaining 0.96% to 3,367.52.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 7,191,340 cases with around 206,000 deaths. India confirmed a total of at least 6,225,760 confirmed cases and 97,490 deaths, while Brazil reported over 4,777,520 COVID-19 cases with 142,920 deaths. In total, there were at least 33,676,270 cases of COVID-19 worldwide with over 1,008,410 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Energy shares jumped 1.4% on Wednesday. Meanwhile, top gainers in the sector included NextDecade Corporation (NASDAQ: NEXT), up 10%, and Renewable Energy Group, Inc. (NASDAQ: REGI), up 7%.

In trading on Wednesday, communication services shares rose by just 0.5%.

Top Headline

Micron Technology, Inc. (NASDAQ: MU) reported better-than-expected results for its fourth quarter, but issued weak profit forecast for the first quarter.

Micron reported quarterly earnings of $1.08 per share, exceeding analysts’ estimates of $0.99 per share. The company reported sales of $6.06 billion, surpassing expectations of $5.89 billion.

Micron said it expects Q1 adjusted EPS of $0.40 to $0.54, versus analysts’ estimates of $0.69. The company projects sales of $5.0 billion to $5.4 billion, versus expectations of $5.31 billion.

 

Equities Trading UP

The Peck Company Holdings, Inc. (NASDAQ: PECK) shares shot up 19% to $8.28 after the company was awarded a $2.365 million contract for 6.8MW project in Maine.

Shares of Jiayin Group Inc. (NASDAQ: JFIN) got a boost, shooting 24% to $3.76. Jiayin Group reported closing of the acquisition of 35% equity interest in Keen Best Investments Limited.

Nano Dimension Ltd. (NASDAQ: NNDM) shares were also up, gaining 13% to $2.4158 after surging around 35% on Tuesday.

 

Equities Trading DOWN

Aptorum Group Limited (NYSE: APM) shares tumbled 40% to $2.8491. Aptorum Group priced its offering of 2.769 million Class A ordinary shares and warrants to purchase up to another 2.769 million Class A Ordinary Shares, at a combined public offering price of $3.25 per share and related warrant.

Shares of Adial Pharmaceuticals, Inc. (NASDAQ: ADIL) were down 29% to $2.1550. Adial Pharmaceuticals announced the sale of 10,000 coronavirus antibody rapid test devices. The company, on Tuesday, disclosed that the FDA issued an emergency use authorization for the company's Assure/FaStep COVID-19 IgG/IgM rapid test device.

Houston American Energy Corp. (NASDAQ: HUSA) was down, falling 22% to $2.3101 after surging around 173% on Tuesday.

Commodities

In commodity news, oil traded down 0.8% to $38.98, while gold traded down 0.6% to $1,892.00.

Silver traded down 2.3% Wednesday to $23.890 while copper rose 0.3% to $2.9980.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 0.2%, the Spanish Ibex Index fell 0.1%, while Italy’s FTSE MIB Index slipped 0.3%. Meanwhile, the German DAX 30 fell 0.5%, French CAC 40 fell 0.5% and London’s FTSE 100 dropped 0.2%.

Spain reported a narrower current account surplus, which shrank to EUR 1.45 billion in July versus EUR 3.74 billion in the year-ago period. German jobless claims declined for the third straight month, falling by 8,000 in September.

Economics

US private businesses hired 749,000 workers in September, the ADP reported

The US economy contracted by an annualized rate of 31.4% in the second quarter versus a 31.7% decline in the second estimate.

The Chicago PMI climbed to 62.4 in September versus 51.2 in August.

The pending home sales index climbed 8.8% for August.

The Energy Information Administration’s weekly report on petroleum inventories is scheduled for release at 10:30 a.m. ET.

Data on farm prices for August will be released at 3:00 p.m. ET.

Federal Reserve Bank of Minneapolis President Neel Kashkari is set to speak at 9:30 a.m. ET.

Fed Gov. Michelle Bowman will speak at 1:40 p.m. ET.

Federal Reserve Bank of Dallas President Robert Kaplan is set to speak at 6:00 p.m. ET.

 

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