Mid-Afternoon Market Update: Dow Surges Over 500 Points; Alaska Communications Shares Spike Higher

Toward the end of trading Tuesday, the Dow traded up 1.98% to 27,457.13 while the NASDAQ rose 1.66% to 11,139.35. The S&P also rose, gaining 1.69% to 3,366.20.


The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 9,293,280 cases with around 231,560 deaths. India confirmed a total of at least 8,267,620 confirmed cases and 123,090 deaths, while Brazil reported over 5,554,200 COVID-19 cases with 160,250 deaths. In total, there were at least 46,956,060 cases of COVID-19 worldwide with over 1,207,760 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors


Industrials shares climbed 2.7% on Tuesday. Meanwhile, top gainers in the sector included Infrastructure and Energy Alternatives, Inc. IEA, up 25%, and DIRTT Environmental Solutions Ltd. DRTT, up 12%.


In trading on Tuesday, energy shares fell 0.7%.


Top Headline


McKesson Corporation MCK reported better-than-expected results for its second quarter and raised FY21 earnings guidance.

 

McKesson reported quarterly earnings of $4.80 per share, beating analysts’ estimates of $3.87 per share. The company posted sales of $60.81 billion, surpassing expectations of $59.42 billion.


McKesson raised its FY21 adjusted EPS guidance from $14.70-$15.50 to $16-$16.50.

 

 

Equities Trading UP


Inspire Medical Systems, Inc. INSP shares shot up 29% to $157.65 after the company reported better-than-expected Q3 results. Oppenheimer upgraded Inspire Medical from Underperform to Perform


Shares of Telenav, Inc. TNAV got a boost, shooting 20% to $4.76 after the company agreed to be acquired by V99 for $4.80 per share in cash in a go private transaction. The company also reported Q1 results.


Alaska Communications Systems Group, Inc. ALSK shares were also up, gaining 58% to $3.0250 after the company agreed to be acquired by Macquarie Capital and GCM Grosvenor for $3 per share in cash.

 

 

 

Equities Trading DOWN

SolarEdge Technologies, Inc. SEDG shares tumbled 24% to $202.32
after the company reported worse-than-expected Q3 sales and also issued downbeat Q4 sales guidance. Oppenheimer downgraded SolarEdge Technologies from Outperform to Perform


Shares of Greenhill & Co., Inc. GHL were down 19% to $10.58 after the company reported worse-than-expected Q3 sales. Keefe, Bruyette & Woods downgraded Greenhill from Market Perform to Underperform and lowered the price target from $13 to $11.5.

 

Intrepid Potash, Inc. IPI was down, falling 18% to $9.18 after the company announced Q3 results.

 

 


Commodities


In commodity news, oil traded up 2.5% to $37.74, while gold traded up 0.8% to $1,908.20.


Silver traded up 0.7% Tuesday to $24.195 while copper rose 0.6% to $3.0940.


Euro zone


European shares closed higher today. The eurozone’s STOXX 600 rose 2.34%, the Spanish Ibex Index rose 2.52%, while Italy’s FTSE MIB Index climbed 3.19%. Meanwhile, the German DAX 30 climbed 2.55%, French CAC 40 rose 2.44% and London’s FTSE 100 rose 2.33%.

UK’s manufacturing activity improved to 53.7 in October, beating the consensus of 53.3, while French government budget deficit widened to EUR 161.6 billion in the first nine months of the year versus EUR 109 billion in the year-ago period.


Economics

 

US factory orders rose 1.1% for September, versus analysts’ expectations for a 1% increase.

 

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