Mid-Morning Market Update: Markets Open Lower; OPEC+ Reaches Deal To Cut Oil Production

Following the market opening Monday, the Dow traded down 1.35% to 23,399.06 while the NASDAQ fell 0.42% to 8,119.59. The S&P also fell, dropping 1.24% to 2,755.34.

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 557,500 coronavirus cases with around 22,100 deaths. Spain confirmed a total of over 169,400 coronavirus cases with 17,400 deaths, while Italy reported a total of at least 156,300 confirmed cases and 19,800 deaths. In total, there were at least 1,859,000 cases of COVID-19 worldwide with over 114,900 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Energy shares climbed 1.5% on Monday. Meanwhile, top gainers in the sector included Sundance Energy Inc SNDE, up 33%, and EnLink Midstream LLC ENLC, up 26%.

In trading on Monday, real estate shares fell 3.2%.

Top Headline

The Organization of the Petroleum Exporting Countries and allies agreed to long-awaited production cuts in a Sunday meeting.

The 9.7 million barrels per day cut (mb/d) fell below the market expectations. The meeting effectively ended a price war between oil powerhouses Saudi Arabia and Russia started in March. OPEC+ proposed a 10 mb/d in its last meeting on Thursday, but Mexico disagreed with the 400,000 mb/d it was asked to cut. Under the latest deal, the country is only required to cut 100,000 mb/d.

Equities Trading UP

SCWorx Corp. WORX shares shot up 154% to $5.82 after the company reported a first installment of purchase order for 48 million coronavirus rapid testing units.

Shares of Independence Contract Drilling, Inc. ICD got a boost, shooting 77% to $11.06 after surging over 160% on Thursday.

Biocept, Inc. BIOC shares were also up, gaining 64% to $0.5855 after the company said in a Thursday press release that it intends to begin accepting physician-ordered COVID-19 molecular diagnostic testing requests for processing beginning April 15.

Equities Trading DOWN

Sabre Corporation SABR shares tumbled 18% to $5.71 after the company reported offerings of senior secured notes and senior exchangeable notes.

Shares of AMC Entertainment Holdings, Inc. AMC were down 17% to $2.1501. AMC is in talks to hire bankruptcy law firm Weil Gotshal as theaters shutdown since mid-March due to coronavirus, the NY Post reported.

Qualstar Corporation QBAK was down, falling 20% to $1.97 after the company reported plans to delist from the NASDAQ and deregister its common stock.

Commodities


In commodity news, oil traded up 0.9% to $22.97, while gold traded down 0.6% to $1,742.70.

Silver traded down 2.2% Monday to $15.695, while copper rose 3.4% to $2.3365.

Euro zone

European markets were closed today for the Easter Monday holiday.

Economics

On the economics calendar Monday, there is no important data due out.