Mid-Morning Market Update: Markets Open Higher; Performance Food Earnings Top Views

Following the market opening Wednesday, the Dow traded up 2.32% to 28,118.87 while the NASDAQ rose 4.08% to 11,615.58. The S&P also rose, gaining 2.99% to 3,470.01.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 9,385,320 cases with around 232,630 deaths. India confirmed a total of at least 8,313,870 confirmed cases and 123,610 deaths, while Brazil reported over 5,566,040 COVID-19 cases with 160,490 deaths. In total, there were at least 47,521,750 cases of COVID-19 worldwide with over 1,215,750 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Health care shares climbed 4.8% on Wednesday. Meanwhile, top gainers in the sector included Cigna Corporation CI, up 14%, and Intra-Cellular Therapies, Inc. ITCI, up 12%.

In trading on Wednesday, materials shares fell 0.7%.

Top Headline

Performance Food Group Co PFGC reported better-than-expected results for its first quarter.

Performance Food reported quarterly earnings of $0.25 per share, beating analysts’ estimates of $0.14 per share. The company posted sales of $7.05 billion, surpassing expectations of $6.99 billion.

 

 

Equities Trading UP

Supernus Pharmaceuticals, Inc. SUPN shares shot up 22% to $22.15 after the company reported better-than-expected Q3 results. The company also raised its FY20 sales guidance .

Shares of Digirad Corporation DRAD got a boost, shooting 22% to $3.10 after the company agreed to sell its DMS Health Technologies business unit for $18.75 million..

Super Micro Computer, Inc. SMCI shares were also up, gaining 19% to $27.50 as the company reported better-than-expected results for its first quarter and issued strong earnings forecast for the current quarter. The company also announced a $50 million buyback plan..

 

Equities Trading DOWN

Repro Med Systems, Inc. KRMD shares tumbled 30% to $4.2716
after the company reported Q3 results.

Shares of Aptevo Therapeutics Inc. APVO were down 19% to $9.10. Aptevo Therapeutics shares climbed 78% on Tuesday after the company announced the first complete remission in a patient was observed in the ongoing APVO436 Phase 1 clinical trial.

Allogene Therapeutics, Inc. ALLO was down, falling 14% to $29.16 after the company reported loss for the third quarter. The company also said it expects FY20 GAAP net loss of $280 million to $260 million.

 

Commodities

In commodity news, oil traded up 2.8% to $38.72, while gold traded down 0.1% to $1,907.70.

Silver traded down 1% Wednesday to $24.095 while copper fell 0.8% to $3.0690.

Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.8%, the Spanish Ibex Index fell 0.6%, while Italy’s FTSE MIB Index climbed 0.3%. Meanwhile, the German DAX 30 gained 0.5%, French CAC 40 rose 0.8% and London’s FTSE 100 rose 0.5%.

Germany's Composite PMI improved to 55 for October, while the Services PMI activity fell to 49.5. Eurozone composite PMI was revised higher to 50 for October versus a preliminary estimate of 49.4.

Economics

 

The Federal Open Market Committee will begin its two-day policy meeting today.

US private businesses hired 365,000 workers in October, the ADP reported.

The US trade deficit shrank to $63.9 billion in September versus $67 billion in August.

The IHS Markit composite PMI was revised higher to 56.3 for October versus a preliminary reading of 55.

The Energy Information Administration’s weekly report on petroleum inventories will be released at 10:30 a.m. ET.