Market Overview

Mid-Morning Market Update: Markets Open Higher; PepsiCo Beats Q3 Views

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Following the market opening Thursday, the Dow traded up 0.56% to 27936.69 while the NASDAQ rose 1.10% to 11,290.68. The S&P also rose, gaining 0.62% to 3,383.84.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 7,234,320 cases with around 206,960 deaths. India confirmed a total of at least 6,312,580 confirmed cases and 98,670 deaths, while Brazil reported over 4,810,930 COVID-19 cases with 143,950 deaths. In total, there were at least 34,018,140 cases of COVID-19 worldwide with over 1,014,990 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Communication services shares jumped 1.2% on Thursday. Meanwhile, top gainers in the sector included ANGI Homeservices Inc. (NASDAQ: ANGI), up 8%, and Lizhi Inc. (NASDAQ: LIZI), up 8%.

In trading on Thursday, energy shares fell by 3%.

Top Headline

PepsiCo, Inc. (NASDAQ: PEP) reported better-than-expected results for its third quarter.

PepsiCo reported quarterly earnings of $1.66 per share, exceeding analysts’ estimates of $1.49 per share. The company reported sales of $18.09 billion, surpassing expectations of $17.23 billion.

Pepsi Co said it sees FY20 organic revenue growth roughly at 4%, and FY20 EPS of $5.50 per share.

 

Equities Trading UP

Solid Biosciences Inc. (NASDAQ: SLDB) shares shot up 128% to $4.63 after the company announced the FDA has lifted the clinical hold placed on the Company's IGNITE DMD Phase I/II clinical trial.

Shares of Enlivex Therapeutics Ltd. (NASDAQ: ENLV) got a boost, shooting 55% to $9.18 after the company announced positive top-line results of an investigator-initiated clinical trial of Allocetra in COVID-19 patients in severe/critical condition.

American Equity Investment Life Holding Company (NYSE: AEL) shares were also up, gaining 39% to $30.51 after the company said it received an unsolicited non-binding proposal from Athene to acquire all outstanding shares of its common stock at $36 per shares in cash.

Equities Trading DOWN

Selecta Biosciences, Inc. (NASDAQ: SELB) shares tumbled 33% to $1.655. Selecta Biosciences and licensing partner Swedish Orphan Biovitrum AB announced negative results for the Phase 2 COMPARE trial comparing the efficacy of SEL-212 to Horizon Therapeutics’ Krystexxa, the currently approved uricase in the U.S. for the treatment of chronic refractory gout..

Shares of LogicBio Therapeutics, Inc. (NASDAQ: LOGC) were down 34% to $6.01 after the company reported the pricing of its 7 million share common stock offering at $6 per share.

ChinaNet Online Holdings, Inc. (NASDAQ: CNET) was down, falling 28% to $1.46 after rising 53% on Wednesday.

Commodities

In commodity news, oil traded down 2.9% to $39.07, while gold traded up 0.4% to $1,902.80.

Silver traded up 1.1% Thursday to $23.745 while copper fell 0.6% to $3.01.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 gained 0.6%, the Spanish Ibex Index rose 0.6%, while Italy’s FTSE MIB Index rose 0.6%. Meanwhile, the German DAX 30 gained 0.1%, French CAC 40 rose 0.7% and London’s FTSE 100 rose 0.5%.

 

Economics

US initial jobless claims dropped to 837,000 in the week ended September 26, from revised reading of 873,000 in the previous week.

US personal income declined 2.7% in August, while personal consumption expenditure gained 1%.

The IHS Markit manufacturing PMI declined to 53.2 in September versus a preliminary reading of 53.51.

The ISM manufacturing PMI declined to 55.4 in September versus 56 in August.

US construction spending rose 1.4% for August.

Federal Reserve Bank of New York President John Williams is set to speak at 11:00 a.m. ET.

The Treasury is set to auction 4-and 8-week bills at 11:30 a.m. ET.

Fed Governor Michelle Bowman is set to speak at 3:00 p.m. ET.

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

 

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