Mid-Morning Market Update: Markets Mostly Flat; Verizon Profit Tops Estimates

Following the market opening Friday, the Dow traded up 0.05% to 23527.17 while the NASDAQ fell 0.09% to 8487.46. The S&P also rose, gaining 0.05% to 2,799.17.

The U.S. is the epicenter of the coronavirus pandemic with the highest number of cases and deaths around the world. U.S. reported a total of 869,170 coronavirus cases with around 49,960 deaths. Spain confirmed a total of over 213,020 coronavirus cases with 22,150 deaths, while Italy reported a total of at least 189,970 confirmed cases and 25,540 deaths. In total, there were at least 2,721,350 cases of COVID-19 worldwide with over 191,230 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Energy shares climbed 1.6% on Friday. Meanwhile, top gainers in the sector included Denbury Resources Inc. DNR, up 26%, and Chesapeake Energy Corporation CHK, up 37%.

In trading on Friday, communication services shares fell 1.1%.

Top Headline

Verizon Communications Inc. VZ reported better-than-expected earnings for its first quarter, while sales missed expectations.

Verizo posted quarterly earnings of $1.26 per share, beating analysts’ estimates of $1.23 per share. Its sales came in at $31.60 billion, versus expectations of $32.44 billion.

Verizon lowered its 2020 adjusted EPS growth forecast to -2% to +2%, versus earlier growth forecast of +2% to +4%.

Equities Trading UP

Mesoblast Limited MESO shares shot up 137% to $15.30 after the company reported 10 out of 12 patients with ventilator-dependent coronavirus infection survived following 2 intravenous infusions of co.'s allogeneic mesenchymal stem cell product candidate Remestemcel-L.

Shares of Tarena International, Inc. TEDU got a boost, shooting 36% to $4.76. Tarena announced plans to file fiscal year 2018 annual report on Form 20-F on April 24, 2020.

Chesapeake Energy Corporation CHK shares were also up, gaining 38% to $37.96 after gaining over 36% on Thursday.

Equities Trading DOWN

Limelight Networks, Inc. LLNW shares tumbled 11% to $5.15 after the company reported Q1 earnings results.

Shares of Natura &Co Holding S.A. NTCO were down 13% to $10.85.

Employers Holdings, Inc. EIG was down, falling 11% to $27.49 after the company reported worse-than-expected Q1 earnings.

Commodities


In commodity news, oil traded up 0.9% to $16.65, while gold traded up 0.7% to $1,757.20.

Silver traded up 0.6% Friday to $15.45, while copper rose 0.1% to $2.3125.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 slipped 0.5%, the Spanish Ibex Index fell 1.2%, while Italy’s FTSE MIB Index fell 0.1%. Meanwhile, the German DAX dropped 0.8%, and the French CAC 40 fell 0.8% while UK shares fell 0.5%.

Economics

U.S. durable goods orders dipped 14.4% in March, versus a revised 1.1% rise in February.

The University of Michigan's consumer sentiment index rose to 71.8 in April, versus a preliminary reading of 71.

The Baker Hughes North American rig count report for the recent week will be released at 1:00 p.m. ET.