Mid-Morning Market Update: Markets Edge Lower; Applied Materials Tops Q3 Expectations

Following the market opening Friday, the Dow traded down 0.24% to 27830.68 while the NASDAQ fell 0.29% to 11009.94. The S&P also fell, dropping 0.14% to 3,368.66.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 5,254,870 cases with around 167,250 deaths. Brazil confirmed a total of over 3,224,870 COVID-19 cases with 105,460 deaths, while India reported a total of at least 2,461,190 confirmed cases and 48,040 deaths. In total, there were at least 20,945,980 cases of COVID-19 worldwide with over 760,020 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Real estate shares gained 0.6% on Friday. Meanwhile, top gainers in the sector included Five Point Holdings, LLC FPH, up 5%, and Ventas, Inc. VTR, up 2%.

In trading on Friday, utilities shares fell by 0.3%.

Top Headline

On Thursday, Applied Materials, Inc. AMAT reported stronger-than-expected results for its third quarter and also issued an upbeat forecast for the current quarter.

Earnings per share came in at $1.06, which beat the estimate of $0.95. The company posted revenue of $4.40 billion, exceeding expectations of $4.18 billion.

Applied Materials said it expects Q4 adjusted EPS of $1.11 to $1.23, versus analysts’ expectations of $1.02. The company projects sales of $4.60 billion versus estimates of $4.36 billion.

Equities Trading UP

Taiwan Liposome Company, Ltd. TLC shares shot up 53% to $7.78 following earlier press release highlighting submission of investigational new drug application for TLC19 inhalable liposomal hydroxychloroquine for coronavirus infection.

Shares of Mesoblast Limited MESO got a boost, shooting 40% to $16.52 after the company said FDA's Oncologic Drugs Advisory Committee voted overwhelmingly in favor that the available data support the efficacy of remestemcel-L in pediatric patients with steroid-refractory acute graft versus host disease.

Ebang International Holdings Inc. EBON shares were also up, gaining 33% to $6.30 after the company established a subsidiary in Singapore in preparation for establishing a cryptocurrency exchange.

Equities Trading DOWN

Flux Power Holdings, Inc. FLUX shares tumbled 47% to $4.2165 after the company reported pricing of $10.8 million public offering.

Shares of Hexindai Inc. HX were down 46% to $1.35. Hexindai shares jumped around 294% on Thursday after the company announced it launched an upgraded version of its social e-commerce platform Xiaobai Maimai.

PaySign, Inc. PAYS was down, falling 29% to $7.38 after the company reported worse-than-expected Q2 results.

Commodities


In commodity news, oil traded down 0.2% to $42.16, while gold traded down 0.7% to $1,956.00.

Silver traded down 3.4% Friday to $26.79, while copper rose 0.8% to $2.8305.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 1.3%, the Spanish Ibex Index fell 1.8%, while Italy’s FTSE MIB Index declined 1.5%. Meanwhile, the German DAX 30 declined 1.1%, French CAC 40 fell 1.8% and UK shares fell 1.8%.

Economics

U.S. retail sales rose 1.2% in July, versus a revised 8.4% surge in June.

Labor productivity increased by an annualized 7.3% in the second quarter, while unit labor costs rose an annualized 12.2%.

U.S. industrial production increased 3.0% in July, following a 5.7% rise in June.

U.S. business inventories declined 1.1% in June after declining 2.3% in May.

The University of Michigan's consumer sentiment index rose slightly to 72.8 in August versus a reading of 72.5 in the prior month.

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