Mid-Morning Market Update: Markets Mixed; D.R. Horton Beats Q4 Estimates

Following the market opening Tuesday, the Dow traded up 0.73% to 29,371.97 while the NASDAQ fell 1.32% to 11,559.62. The S&P also fell, dropping 0.18% to 3,543.99.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 10,110,550 cases with around 238,250 deaths. India confirmed a total of at least 8,591,730 confirmed cases and 127,050 deaths, while Brazil reported over 5,675,030 COVID-19 cases with 162,620 deaths. In total, there were at least 50,913,450 cases of COVID-19 worldwide with over 1,263,080 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Industrials shares climbed 2% on Tuesday. Meanwhile, top gainers in the sector included Infrastructure and Energy Alternatives, Inc. IEA, up 24%, and Spirit AeroSystems Holdings, Inc. SPR, up 9%.

In trading on Tuesday, consumer discretionary shares fell by 1.4%.

Top Headline

D.R. Horton, Inc. DHI reported better-than-expected results for its fourth quarter.

D.R. Horton posted quarterly earnings of $2.24 per share, exceeding analysts’ expectations of $1.76 per share. The company reported sales of $6.40 billion, surpassing estimates of $5.88 billion.

D.R. Horton said it expects FY21 sales of $24 billion to $25 billion, versus estimates of $23.13 billion

Equities Trading UP

Greenland Technologies Holding Corporation GTEC shares shot up 131% to $5.41 after the company reported it will begin offering integrated electric drivetrain system to existing forklift OEM clientele to support manufacture of electric forklifts using lithium batteries.

Shares of Summit Wireless Technologies, Inc. WISA got a boost, shooting 37% to $2.915 after the company reported 45% year-over-year revenue growth for the third quarter. The company also said it sees more than 100% year-over-year revenue growth for Q4.

Trxade Group, Inc. MEDS shares were also up, gaining 28% to $5.51 after the company entered into a solution marketing program agreement with Amazon.com Services, LLC to promote Amazon storage lockers.

Equities Trading DOWN

GasLog Partners LP GLOP shares tumbled 31% to $2.38 after reporting downbeat Q3 results.

Shares of InnSuites Hospitality Trust IHT were down 27% to $2.1385 after surging around 82% on Monday.

Praxis Precision Medicines, Inc. PRAX was down, falling 27% to $26.01 after the company issued a regulatory update on PRAX-114 program. Piper Sandler initiated coverage on Praxis Precision Medicine with an Overweight rating and announced a price target of $65.

Commodities

In commodity news, oil traded up 0.7% to $40.59, while gold traded up 1.2% to $1,876.80.

Silver traded up 1.9% Tuesday to $24.155 while copper fell 1% to $3.1255.

Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.4%, the Spanish Ibex Index climbed 1.9%, while Italy’s FTSE MIB Index fell 0.5%. Meanwhile, the German DAX 30 slipped 0.1%, French CAC 40 gained 0.8% and London’s FTSE 100 rose 1.2%.

UK’s unemployment rate increased to 4.8% in September, in-line with expectations. France's industrial production activity rose 1.4% in September.

Economics

The NFIB small business optimism index came in unchanged at 104 in October.

The IBD/TIPP Economic Optimism Index declined to 50 in November versus 55.2 in October.

The number of job openings rose by 84,000 to 6.4 million in September.

The Treasury is set to auction 10-year notes at 1:00 p.m. ET.

Federal Reserve Vice Chair for Supervision Randal Quarles will speak at 2:00 p.m. ET.

Federal Reserve Bank of Boston President Eric Rosengren is set to speak at 4:00 p.m. ET.

Federal Reserve Governor Lael Brainard will speak at 5:00 p.m. ET.