Market Overview

Mid-Afternoon Market Update: Snap Jumps On Upbeat Q3 Results; Armstrong Flooring Shares Drop

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Toward the end of trading Wednesday, the Dow traded up 0.12% to 28,341.77 while the NASDAQ rose 0.31% to 11,552.28. The S&P also rose, gaining 0.32% to 3,453.9.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 8,275,060 cases with around 221,080 deaths. India confirmed a total of at least 7,651,100 confirmed cases and 115,910 deaths, while Brazil reported over 5,273,950 COVID-19 cases with 154,830 deaths. In total, there were at least 40,846,860 cases of COVID-19 worldwide with over 1,125,750 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Communication services shares climbed 1.6% on Wednesday. Meanwhile, top gainers in the sector included Snap Inc. (NYSE: SNAP), up 31%, and 9F Inc. (NASDAQ: JFU), up 22%.

In trading on Wednesday, energy shares fell 1.5%.

Top Headline

Verizon Communications Inc. (NYSE: VZ) reported better-than-expected earnings for its third quarter, while sales missed views.

Verizon reported quarterly earnings of $1.25 per share, beating analysts’ estimates of $1.22 per share. The company posted sales of $31.50 billion, missing expectations of $31.59 billion. Verizon reported 136,000 retail postpaid net additions during the quarter.

Equities Trading UP

Snap Inc. (NYSE: SNAP) shares shot up 31% to $37.40 after the company reported upbeat earnings and sales for the third quarter. The company reported Q3 daily active users climbed 18% year-over-year to 249 million.

Shares of WD-40 Company (NASDAQ: WDFC) got a boost, shooting 17% to $230.16 after the company reported better-than-expected Q4 results. DA Davidson maintained WD-40 with a Buy and raised the price target from $233 to $250.

Astrotech Corporation (NASDAQ: ASTC) shares were also up, gaining 38% to $2.29 after the company announced partnership with Cleveland Clinic to develop a rapid COVID-19 breath test.

 

Equities Trading DOWN

Weidai Ltd. (NYSE: WEI) shares tumbled 47% to $2.74 on profit-taking after the stock rose roughly 160% yesterday.

Shares of GSX Techedu Inc. (NYSE: GSX) were down 28% to $74.46 following a report suggesting the company sees a Q3 loss of RMB900 million.

Armstrong Flooring, Inc. (NYSE: AFI) was down, falling 27% to $3.83 after reporting results for the third quarter.

Commodities

In commodity news, oil traded down 4.3% to $39.90, while gold traded up 0.6% to $1,927.00.

Silver traded up 1% Wednesday to $25.23 while copper rose 1.4% to $3.1930.

Euro zone

European shares closed lower today. The eurozone’s STOXX 600 fell 1.29%, the Spanish Ibex Index fell 1.67%, while Italy’s FTSE MIB Index declined 2.03%. Meanwhile, the German DAX 30 slipped 1.41%, French CAC 40 fell 1.53% and London’s FTSE 100 fell 1.91%.

The Consumer Price Index for Britain rose 0.4% in September, missing the consensus of 0.5% growth. UK’s PPI output for September declined 0.1% month-over-month, while Retail Price Index rose 0.3%.

Economics

U.S. crude inventories dropped 1 million barrels for the week ended October 16, the Energy Information Administration reported. However, analysts expected a decline of 1.9 million barrels. Gasoline supply fell 1.9 million barrels, while distillate stockpiles dropped 3.8 million barrels last week.

The Federal Open Market Committee released its latest Beige Book report.

 

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