Mid-Morning Market Update: Markets Open Higher; Walmart Tops Q3 Expectations

Mid-Morning Market Update: Markets Open Higher; Walmart Tops Q3 Expectations

Following the market opening Tuesday, the Dow traded up 0.40% to 36,231.05 while the NASDAQ rose 0.20% to 15,885.76. The S&P also rose, gaining 0.31% to 4,697.11.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 48,072,890 cases with around 784,770 deaths. India confirmed a total of at least 34,456,400 cases and 463,850 deaths, while Brazil reported over 21,960,760 COVID-19 cases with 611,380 deaths. In total, there were at least 254,728,680 cases of COVID-19 worldwide with more than 5,125,680 deaths, according to data compiled by Johns Hopkins University.


Leading and Lagging Sectors


Consumer discretionary shares gained by 1.1% on Tuesday. Meanwhile, top gainers in the sector included On Holding AG ONON, up 25% and PLBY Group, Inc. PLBY up 15%.


In trading on Tuesday, energy shares fell 0.3%.


Top Headline


Walmart Inc. TSN reported better-than-expected results for its third quarter on Tuesday.

Walmart posted quarterly earnings of $1.45 per share, beating analysts’ estimates of $1.40 per share. The company’s quarterly sales came in at $140.53 billion, versus expectations of $135.60 billion. Walmart’s US same-store sales surged 9.2% last quarter.

Walmart raised its FY22 adjusted earnings guidance from $6.20-$6.35 per share to $6.40 per share.


Equities Trading UP


Progenity, Inc. PROG shares shot up 33% to $4.63 after climbing around 17% on Monday. Progenity recently reported worse-than-expected Q3 EPS results.


Shares of Kezar Life Sciences, Inc. KZR got a boost, shooting 36% to $11.40 as the company announced positive interim results from the Phase 2 portion of the MISSION clinical study evaluating KZR-616 in patients with active, proliferative lupus nephritis.


On Holding AG ONON shares were also up, gaining 23% to $44.76 after the company reported Q3 earnings results.

Check out these big movers of the day


Equities Trading DOWN

Talkspace, Inc. TALK shares tumbled 38% to $2.1185 after the company reported worse-than-expected Q3 sales results. Baird downgraded Talkspace from Outperform to Neutral and lowered the price target from $10 to $3, while SVB Leerink downgraded the stock from Outperform to Market Perform.


Shares of OptiNose, Inc. OPTN were down 33% to $1.5950 after the company reported pricing of public offering of 25 million shares of common stock at $1.60 per share. Optinose also posted Q3 Xhance (fluticasone propionate) sales of $21.8 million, +41% Y/Y, missing the consensus of $23.48 million.


Molecular Partners AG MOLN was down, falling 32% to $10.08 after the company announced that a planned futility analysis of ensovibep in the Phase 3 ACTIV-3 study has not met the thresholds required to continue enrollment of hospitalized adults with COVID-19.


Commodities

In commodity news, oil traded up 0.5% to $81.27, while gold traded up 0.5% to $1,875.30.


Silver traded up 0.7% Tuesday to $25.275 while copper fell 0.1% to $4.3985.


Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.4%, the Spanish Ibex Index fell 0.3% and the German DAX 30 gained 0.5%. Meanwhile, the London’s FTSE 100 rose 0.2%, French CAC 40 rose 0.4% and Italy’s FTSE MIB rose 0.1%.

The annual inflation rate in Italy rose to 3% in October from 2.5% in the prior month, while French consumer price inflation rate was confirmed at 2.6% year-over-year in October. The number of people claiming unemployment benefits in the UK fell by 14.9 thousand in October, while unemployment rate fell to 4.3% during the three months to September. Labour productivity in the UK declined 1.2% on quarter during the three months to September.


Economics


US retail sales increased 1.7% in October following a revised 0.8% growth in the prior month.


The price index for US imports rose 1.2% from a month ago in October, while prices for exports increased 1.5%.


US industrial production increased 1.6% from a month ago in October.


US business inventories rose 0.7% from a month ago in September.


The NAHB housing market index increased three points to 83 in November, recording the highest level in six months.


Federal Reserve Bank of Atlanta President Raphael Bostic is set to speak at 12:00 p.m. ET.


Federal Reserve Bank of Philadelphia President Patrick Harker will speak at 2:55 p.m. ET.


San Francisco Federal Reserve Bank President Mary Daly is set to speak at 3:30 p.m. ET.


The Treasury International Capital report for September will be released at 4:00 p.m. ET.

Check out the full economic calendar here

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