Market Overview

Mid-Morning Market Update: Markets Open Higher; Estée Lauder Profit Tops Views

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Following the market opening Monday, the Dow traded up 1.78% to 26,972.83 while the NASDAQ rose 1.31% to 11,054.61. The S&P also rose, gaining 1.64% to 3,323.59.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 9,208,870 cases with around 231,000 deaths. India confirmed a total of at least 8,229,310 confirmed cases and 122,600 deaths, while Brazil reported over 5,545,700 COVID-19 cases with 160,070 deaths. In total, there were at least 46,607,510 cases of COVID-19 worldwide with over 1,201,640 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Industrials shares climbed 2.1% on Monday. Meanwhile, top gainers in the sector included Insperity, Inc. (NYSE: NSP), up 8%, and Covanta Holding Corporation (NYSE: CVA), up 9%.

In trading on Monday, consumer discretionary shares rose by just 1%.

Top Headline

The Estée Lauder Companies Inc. (NYSE: EL) reported better-than-expected results for its first quarter, but issued weak forecast for the current quarter.

 

Estee Lauder reported quarterly earnings of $1.44 per share, beating analysts’ estimates of $0.90 per share. The company posted sales of $3.56 billion, surpassing expectations of $3.45 billion.

Estee Lauder said it expects Q2 EPS of $1.45-$1.60, versus analysts’ estimates of $1.72.

 

 

Equities Trading UP

Endurance International Group Holdings, Inc. (NASDAQ: EIGI) shares shot up 62% to $9.43 after the company announced it would be acquired by Clearlake Capital for $9.50 per share. The company also reported upbeat Q3 results.

Shares of Kimball Electronics, Inc. (NASDAQ: KE) got a boost, shooting 22% to $14.73. Kimball Electronics is expected to release its Q1 financial results on Tuesday, November 3, 2020 after the closing bell.

AnPac Bio-Medical Science Co., Ltd. (NASDAQ: ANPC) shares were also up, gaining 14% to $3.65 after the company announced that its investee company in China received COVID-19 Nucleic Acid Test certification and began volume tests and collaborations with the company.

 

 

Equities Trading DOWN

MICT, Inc. (NASDAQ: MICT) shares tumbled 31% to $2.1450 after the company reported a $25 million registered direct offering.

Shares of Liquidia Technologies, Inc. (NASDAQ: LQDA) were down 29% to $3.2746 after the company reaffirmed the recommendation to approve the proposed acquisition of RareGen, saying that a recent unsolicited offer for a LIQ861 license agreement does not constitute a superior proposal.

Jounce Therapeutics, Inc. (NASDAQ: JNCE) was down, falling 27% to $6.09 after the company announced it halted enrollment in its EMERGE Phase 2 trial.

 

 

Commodities

In commodity news, oil traded down 2.7% to $34.83, while gold traded up 0.5% to $1,889.00.

Silver traded up 1.8% Monday to $24.065 while copper rose 0.1% to $3.0515.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 rose 1.2%, the Spanish Ibex Index rose 1.2%, while Italy’s FTSE MIB Index climbed 1.8%. Meanwhile, the German DAX 30 climbed 1.9%, French CAC 40 rose 1.9% and London’s FTSE 100 rose 1.2%.

Germany's manufacturing activity improved marginally to 58.2 in October. UK’s Prime Minister Johnson announced a 1-month lockdown from November 5 as the country’s Covid-19 cases exceeded the 1-million mark.

Economics

The IHS Markit manufacturing PMI was revised higher to 53.4 in October versus a preliminary reading of 53.3.

The ISM manufacturing PMI rose to 59.3 in October from 55.4 in September.

US construction spending increased 0.3% for September.

The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.

 

 

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