Mid-Morning Market Update: Markets Mixed; Kroger Tops Q2 Views

Following the market opening Friday, the Dow traded down 0.15% to 34,827.04 while the NASDAQ rose 0.32% to 15,296.61. The S&P also rose, gaining 0.03% to 4,494.53.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 40,606,090 cases with around 654,620 deaths. India confirmed a total of at least 33,174,950 cases and 442,000 deaths, while Brazil reported over 20,958,890 COVID-19 cases with 585,170 deaths. In total, there were at least 223,266,160 cases of COVID-19 worldwide with more than 4,607,520 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Consumer discretionary shares gained 0.6% on Friday. Meanwhile, top gainers in the sector included Greenlane Holdings, Inc. GNLN, up 13% and Onion Global Limited OG up 8%.

In trading on Friday, real estate shares fell by 0.9%.

Top Headline

The Kroger Co. KR reported better-than-expected results for its second quarter on Friday.

Kroger reported quarterly earnings of $0.80 per share, beating analysts’ estimates of $0.64 per share. The company’s quarterly sales came in at $31.68 billion, versus expectations of $30.68 billion.

Kroger said it sees FY21 earnings of $3.25 to $3.35 per share, versus analysts’ estimates of $3.06 per share.

 

Equities Trading UP

IVERIC bio, Inc. ISEE shares shot up 65% to $14.32 after Apellis Pharmaceuticals reported results from its Phase 3 DERBY and OAKS studies in geographic atrophy. IVERIC Bio, a competitor to Apellis, is also working on a product to treat geographic atrophy, called Zimura. Stifel initiated coverage on IVERIC bio with a Buy rating and announced a price target of $22.

Shares of Echo Global Logistics, Inc. ECHO got a boost, shooting 54% to $48.17 after the company agreed to be acquired by private equity firm The Jordan Company.

Endo International plc ENDP shares were also up, gaining 54% to $3.23 after the company said it has settled three consolidated opioid cases pending in Suffolk County Supreme Court in the State of New York. As a result of the settlement, Endo has been severed from the trial.

Check out these big movers of the day

Equities Trading DOWN

Apellis Pharmaceuticals, Inc. APLS shares tumbled 46% to $30.01 after the company reported mixed top-line results from the Phase 3 DERBY and OAKS studies evaluating intravitreal pegcetacoplan in 1,258 adults with geographic atrophy secondary to age-related macular degeneration. The OAKS study met the primary endpoint for both monthly and every-other-month treatment with pegcetacoplan, demonstrating a significant reduction in GA lesion growth of 22% and 16%, respectively, compared to pooled sham at 12 months. However the DERBY study did not meet the primary endpoint of GA lesion growth, showing a reduction of 12% and 11%, with monthly and every-other-month treatment, respectively, compared to pooled sham at 12 months.

Shares of Kaival Brands Innovations Group, Inc. KAVL were down 41% to $6.00 after climbing over 20% on Thursday.

Mersana Therapeutics, Inc. MRSN was down, falling 36% to $9.06.

Commodities

In commodity news, oil traded up 2% to $69.48, while gold traded down 0.2% to $1,795.90.

Silver traded down 0.1% Friday to $24.145 while copper rose 3.5% to $4.4355.

Euro zone

European shares were mostly lower today. The eurozone’s STOXX 600 slipped 0.1%, the Spanish Ibex Index fell 1.3% and the German DAX 30 gained 0.1%. Meanwhile, the London’s FTSE 100 rose 0.1%, French CAC 40 slipped 0.1% and Italy’s FTSE MIB slipped 0.6%.

French industrial production increased 0.3% in July, while Italy's industrial production rose 0.8% from a month ago in July. Annual consumer price inflation rate in Germany was confirmed at 3.9% in August.

The UK GDP expanded by 3.6% during the three months to July, while industrial production rose 1.2% in July. The UK trade deficit increased to GBP 3.1 billion in July from GBP 2.5 billion in the earlier month. Imports to the UK rose 1.1%, while exports slipped 0.1% from the previous month in July.

Economics

Producer prices for final demand rose 0.7% in August.

US wholesale inventories rose 0.6% month-over-month to $722 billion in July.

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

Check out the full economic calendar here