Mid-Morning Market Update: Markets Open Lower; Walgreens Profit Beats Views

Following the market opening Thursday, the Dow traded down 0.83% to 28277.19 while the NASDAQ fell 1.06% to 11,643.62. The S&P also fell, dropping 0.89% to 3,457.64.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 7,917,180 cases with around 216,900 deaths. India confirmed a total of at least 7,307,090 confirmed cases and 111,260 deaths, while Brazil reported over 5,140,860 COVID-19 cases with 151,740 deaths. In total, there were at least 38,564,170 cases of COVID-19 worldwide with over 1,092,960 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Real estate shares rose 0.3% on Thursday. Meanwhile, top gainers in the sector included Public Storage PSA, up 2%, and Armada Hoffler Properties, Inc. AHH, up 2%.

In trading on Thursday, energy shares fell 1.7%.

Top Headline

Walgreens Boots Alliance Inc WBA reported better-than-expected results for its fourth quarter.

Walgreens reported quarterly earnings of $1.02 per share, beating analysts’ estimates of $0.96 per share. The company posted sales of $34.70 billion, surpassing expectations of $34.37 billion.

Equities Trading UP

Huttig Building Products, Inc. HBP shares shot up 44% to $3.4634.

Shares of SPI Energy Co., Ltd. SPI got a boost, shooting 37% to $9.81 after the company announced its wholly-owned subsidiary, EdisonFuture, entered into a strategic cooperation framework agreement with Shaanxi Tongjia Automobile Co.

Replimune Group, Inc. REPL shares were also up, gaining 17% to $42.35. HC Wainwright & Co. upgraded Replimune Group from Neutral to Buy and raised the price target from $25 to $54. The company said abstract comprising data for its lead candidate RP1 in advanced solid tumors will be presented at the November Society for Immunotherapy of Cancer annual meeting.


Equities Trading DOWN

Fastly, Inc. FSLY shares tumbled 27% to $89.42 after the company lowered its sales guidance for the third quarter due to lower revenue expected from its top client TikTok. Stifel and Baird also downgraded the stock.

Shares of VivoPower International PLC VVPR were down 19% to $9.25 as the company priced its underwritten public offering of 2,941,176 shares at $8.50 per share.

Vertex Pharmaceuticals Incorporated VRTX was down, falling 17% to $226.15 as the company said it has decided to stop dosing in the Phase 2 proof-of-concept trial that is evaluating VX-814 in alpha-1 antitrypsin deficiency, or AATD. The decision is based on the safety and pharmacokinetic observed to date in the trial, the company said. The company also opted to discontinue development of VX-814.


In commodity news, oil traded down 2.3% to $40.09, while gold traded down 0.4% to $1,899.50.

Silver traded down 1.6% Thursday to $23.995 while copper fell 0.3% to $3.0415.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 2.3%, the Spanish Ibex Index fell 2%, while Italy’s FTSE MIB Index declined 2.7%. Meanwhile, the German DAX 30 declined 3%, French CAC 40 dropped 2.3% and London’s FTSE 100 dropped 2.2%.

French Consumer Price Index dropped 0.5% month-over-month in September.


Initial jobless claims rose to 898,000 in the week ended October 10 versus a revised reading of 845,000 in the previous week.

The Philadelphia Fed manufacturing index climbed to 32.3 in October versus 15 in September.

The New York Empire State manufacturing index slipped to 10.5 in October from 17 in September.

US import prices rose 0.3% in September, while export prices increased 0.6%.

The Energy Information Administration’s weekly report on natural gas stocks in underground storage is schedule for release at 10:30 a.m. ET.

The Energy Information Administration’s weekly report on petroleum inventories will be released at 11:00 a.m. ET.

Federal Reserve Bank of Dallas President Robert Kaplan will speak at 11:00 a.m. ET.

Federal Reserve Vice Chairman for Supervision Randal Quarles is set to speak at 11:00 a.m. ET.

Federal Reserve Bank of St. Louis President James Bullard will speak at 11:10 a.m. ET.

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

Federal Reserve Bank of Richmond President Thomas Barkin is set to speak at 2:00 p.m. ET.

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

Minneapolis Fed President Neel Kashkari will speak at 5:00 p.m. ET.

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