Mid-Day Market Update: Nasdaq Down 2%; American Renal Associates Shares Jump

Midway through trading Friday, the Dow traded down 0.58% to 27,656.50 while the NASDAQ fell 2.02% to 11,097.21. The S&P also fell, dropping 1% to 3,347.06.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 7,279,060 cases with around 207,810 deaths. India confirmed a total of at least 6,394,060 confirmed cases and 99,770 deaths, while Brazil reported over 4,847,090 COVID-19 cases with 144,680 deaths. In total, there were at least 34,324,200 cases of COVID-19 worldwide with over 1,023,450 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Materials shares jumped 0.7% on Friday. Meanwhile, top gainers in the sector included Lithium Americas Corp. LAC, up 15%, and Piedmont Lithium Limited PLL, up 9%.

In trading on Friday, information technology shares fell by 2.6%.

Top Headline

The nonfarm payroll number came in at +661,000, worse than consensus expectations of +800,000.

The unemployment rate decreased 0.5% to 7.9%. Average hourly earnings were up less than 0.1% in the month to $29.47. The leisure and hospitality industry led the gains in September by adding 318,000 jobs, more than any other industry.

Equities Trading UP

American Renal Associates Holdings, Inc. ARA shares shot up 67% to $11.58 after the company reported an $11.50 per share cash offer from Nautic Partners.

Shares of IDT Corporation IDT got a boost, shooting 40% to $9.63 after reporting higher earnings and sales for the fourth quarter.

Xtant Medical Holdings, Inc. XTNT shares were also up, gaining 83% to $1.50 after the company announced the closing of debt restructuring.

Equities Trading DOWN

Benitec Biopharma Inc. BNTC shares tumbled 38% to $3.01 as the company priced 3.23 million shares at $3.10 per share.

Shares of Mesoblast Limited MESO were down 35% to $12.05 after the company said the FDA issued a complete response letter to its BLA for remestemcel-L for the treatment of pediatric steroid-refractory acute graft versus host disease. The FDA has sought the company conduct at least one additional study in adults and/or children to provide further evidence of the effectiveness of remestemcel-L for SR-aGVHD.

Hycroft Mining Holding Corporation HYMC was down, falling 15% to $7.64 as the company priced its 8.33 million unit offering at $9 per unit.

Commodities

In commodity news, oil traded down 3.1% to $37.53, while gold traded down 0.4% to $1,908.40.

Silver traded down 1.1% Friday to $23.985 while copper rose 3.7% to $2.9705.

Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.25%, the Spanish Ibex Index rose 0.35%, while Italy’s FTSE MIB Index rose 0.01%. Meanwhile, the German DAX 30 declined 0.33%, French CAC 40 rose 0.02% and London’s FTSE 100 rose 0.39%.

Economics

The economy added 661,000 jobs in September, while the unemployment rate declined to 7.9%. Economists were expecting a gain of 800,000 jobs last month.

The University of Michigan's consumer sentiment index increased to 80.4 in September versus a preliminary reading of 78.9.

U.S. factory orders increased 0.7% for August.

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

Federal Reserve Bank of Minneapolis President Neel Kashkari will speak at 1:00 p.m. ET.