Mid-Morning Market Update: Markets Open Lower; US Economy Adds 638,000 Jobs In October

Following the market opening Friday, the Dow traded down 0.34% to 28,293.42 while the NASDAQ fell 0.87% to 11,787.42. The S&P also fell, dropping 0.34% to 3,498.58.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 9,610,960 cases with around 234,940 deaths. India confirmed a total of at least 8,411,720 confirmed cases and 124,980 deaths, while Brazil reported over 5,590,020 COVID-19 cases with 161,100 deaths. In total, there were at least 48,801,030 cases of COVID-19 worldwide with over 1,235,330 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Materials shares climbed 0.9% on Friday. Meanwhile, top gainers in the sector included Metalla Royalty & Streaming Ltd. MTA, up 7%, and Livent Corporation LTHM, up 8%.

In trading on Friday, consumer discretionary shares fell 1.5%.

Top Headline

The US economy added 638,000 jobs in October, better than analysts’ estimates for a gain of 600,000 jobs. The country’s unemployment rate fell to 6.9% in October from 7.9% in the previous month.

Equities Trading UP

FTS International, Inc. FTSI shares shot up 50% to $4.92 after the company announced the confirmation of a reorganization plan and anticipates full emergence from Chapter 11 by the end of November 2020.

Shares of Aurora Cannabis Inc. ACB got a boost, shooting 43% to $8.98 after voters in multiple US states voted in favor of legalizing recreational and/or medical marijuana.

Cooper-Standard Holdings Inc.. CPS shares were also up, gaining 29% to $25.80 as the company reported Q3 results. Benchmark upgraded Cooper-Standard Holdings from Hold to Buy and announced a $30 price target.

Equities Trading DOWN

Assembly Biosciences, Inc. ASMB shares tumbled 67% to $5.26
after the company said the open-label Phase 2 extension study evaluating vebicorvir in patients with chronic HBV infection failed to achieve meaningful sustained virologic response, or SVR, with 39 of 41 patients having now relapsed. The company also posted Q3 results.

Shares of Global Blood Therapeutics, Inc. GBT were down 36% to $38.69 after the company reported worse-than-expected Q3 results.

Calumet Specialty Products Partners, L.P. CLMT was down, falling 25% to $2.73 after the company reported Q3 results.

Commodities

In commodity news, oil traded down 3.1% to $37.58, while gold traded up 0.4% to $1,954.00.

Silver traded up 2.6% Friday to $25.855 while copper rose 1.5% to $3.1580.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 0.5%, the Spanish Ibex Index fell 0.8%, while Italy’s FTSE MIB Index declined 0.6%. Meanwhile, the German DAX 30 declined 1%, French CAC 40 fell 0.8% and London’s FTSE 100 fell 0.3%.

Retail sales in Italy declined 0.8% in September, while industrial production in Germany rose 1.6% in September.

Economics

The US economy added 638,000 jobs in October, better than analysts’ estimates for a gain of 600,000 jobs. The country’s unemployment rate fell to 6.9% in October from 7.9% in the previous month.

Wholesale inventories rose 0.4% for September.

The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.

Data on consumer credit for September will be released at 3:00 p.m. ET.