Mid-Morning Market Update: Markets Open Lower; Adobe Reports Upbeat Q2 Earnings

Following the market opening Friday, the Dow traded down 1.25% to 33,401.59 while the NASDAQ fell 0.54% to 14,085.56. The S&P also fell, dropping 0.86% to 4,185.44.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 33,508,900 cases with around 600,930 deaths. India confirmed a total of at least 29,762,790 cases and 383,490 deaths, while Brazil reported over 17,702,630 COVID-19 cases with 496,000 deaths. In total, there were at least 177,465,600 cases of COVID-19 worldwide with more than 3,843,090 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Information technology shares slipped by just 0.4% on Friday. Meanwhile, top gainers in the sector included Sykes Enterprises, Incorporated SYKE, up 30%, and Intellicheck, Inc. IDN, up 10%.

In trading on Friday, financial shares tumbled 2.4%.

Top Headline

Adobe Inc ADBE reported upbeat results for its second quarter and issued strong guidance for the current quarter on Thursday.

Adobe reported quarterly earnings of $3.03 per share, exceeding analysts’ estimates of $2.81 per share. The company’s quarterly sales came in at $3.84 billion, topping expectations of $3.73 billion.

Adobe said it sees Q3 adjusted earnings of $3.00 per share, versus analysts’ estimates of $2.89 per share. The company projects sales of $3.88 billion, compared to expectations of $3.83 billion.

 

Equities Trading UP

CAI International, Inc. CAI shares shot up 46% to $55.72 after the company agreed to a $1.1 billion takeover by Mitsubishi HC Capital Inc.

Shares of Sykes Enterprises, Incorporated SYKE got a boost, shooting 30% to $53.49 after the company announced it will be acquired by Sitel Group at a purchase price of $54 per share in cash.

AnPac Bio-Medical Science Co., Ltd. ANPC shares were also up, gaining 16% to $5.01 after the company received its first disease treatment patent by the United States Patent and Trademark Office..

Check out these big movers of the day

Equities Trading DOWN

Athira Pharma, Inc. ATHA shares tumbled 41% to $10.74. Athira Pharma’s CEO Leen Kawas has been placed on temporary leave until the company completes a review “stemming from doctoral research Dr. Kawas conducted while at Washington State University.” The company, which is developing drugs for treating Alzheimer’s disease, said that Chief Operating Officer Mark Litton would assume day-to-day responsibilities during Kawas’ leave.

Shares of Orphazyme A/S ORPH were down 41% to $8.53 after the company issued regulatory update from the FDA on arimoclomol for Niemann-Pick disease type C.

Capstone Green Energy Corporation CGRN was down, falling 21% to $5.75 after the company increased its earlier announced bought deal offering of common stock to $10.0 million.

Commodities

In commodity news, oil traded down 0.7% to $70.57, while gold traded up 1% to $1,792.30.

Silver traded up 2.3% Friday to $26.44 while copper rose 0.3% to $4.19.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 0.4%, the Spanish Ibex Index fell 1% and the German DAX 30 fell 0.6%. Meanwhile, the London’s FTSE 100 fell 0.9%, French CAC 40 fell 0.2% and Italy’s FTSE MIB fell 0.7%.

Producer prices in Germany surged 7.2% year-over-year in May, recording the strongest growth since October 2008. UK’s retail sales fell 1.4% in May versus a 9.2% rise in April, while construction output in Italy rose 60.2% year-over-year in April. The Eurozone current account surplus increased to EUR 31.4 billion in April from EUR 12.1 billion in the year-ago month.

Economics

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

Check out the full economic calendar here