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Mid-Day Market Update: Virtusa Falls On Downbeat Q4 Results; Applied DNA Sciences Shares Jump

Midway through trading Thursday, the Dow traded down 0.59% to 23110.02 while the NASDAQ fell 1.01% to 8,773.53. The S&P also fell, dropping 0.93% to 2,793.91.

Benzinga · 05/14/2020 16:53

Midway through trading Thursday, the Dow traded down 0.59% to 23110.02 while the NASDAQ fell 1.01% to 8,773.53. The S&P also fell, dropping 0.93% to 2,793.91.

The U.S. is the new epicenter of the coronavirus pandemic with the highest number of cases and deaths around the world. U.S. reported a total of 1,390,760 coronavirus cases with around 84,130 deaths. Britain confirmed a total of over 230,980 coronavirus cases with 33,260 deaths, while Russia reported a total of at least 252,240 confirmed cases and 2,300 deaths. In total, there were at least 4,362,990 cases of COVID-19 worldwide with over 297,460 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Financial shares slipped by just 0.1% on Thursday. Meanwhile, top gainers in the sector included Ambac Financial Group, Inc. (NYSE: AMBC), up 5%, and Futu Holdings Limited (NASDAQ: FUTU), up 6%.

In trading on Thursday, real estate shares fell 2.2%.

Top Headline

Cisco Systems, Inc. (NASDAQ: CSCO) reported better-than-expected earnings and sales for its third quarter and issued strong earnings outlook for the current quarter on Wednesday.

Cisco reported third-quarter earnings of 79 cents per share, which beat the analyst consensus estimate of 71 cents. The company reported quarterly sales of $12 billion, which beat the analyst consensus estimate of $11.88 billion.

Cisco said it sees Q4 adjusted earnings of $0.72 to $0.74 per share, versus analysts’ estimates of $0.71 per share. The company projects sales to decline 8.5%-11.5% year over year.

Equities Trading UP

Applied DNA Sciences, Inc. (NASDAQ: APDN) shares shot up 50% to $13.35 after the company announced it has received FDA emergency use authorization for its coronavirus diagnostic assay kit.

Shares of BioPharmX Corporation (NASDAQ: BPMX) got a boost, shooting 39% to $0.664 after the company reported shareholders approval of merger with Timber Pharma.

Allogene Therapeutics, Inc. (NASDAQ: ALLO) shares were also up, gaining 31% to $40.46 after the company announced the release of an abstract for its upcoming ASCO meeting presentation, showing data from its Phase 1 dose escalation study of ALLO-501 in relapsed/refractory non-Hodgkin lymphoma.

Equities Trading DOWN

Arcadia Biosciences, Inc. (NASDAQ: RKDA) shares tumbled 14% to $4.15 after reporting Q1 results.

Shares of Comstock Resources, Inc. (NYSE: CRK) were down 27% to $4.7550 after the company reported the commencement of a 40 million share common stock offering.

Virtusa Corporation (NASDAQ: VRTU) was down, falling 26% to $23.52 after the company reported worse-than-expected Q4 results. William Blair downgraded Virtusa from Outperform to Market Perform.

Commodities

In commodity news, oil traded up 3.4% to $26.16, while gold traded up 1.3% to $1,738.20.

Silver traded up 2.5% Thursday to $16.06, while copper fell 0.1% to $2.3455.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 slipped 1.84%, the Spanish Ibex Index fell 0.86%, while Italy’s FTSE MIB Index fell 1.28%. Meanwhile, the German DAX dropped 1.7%, and the French CAC 40 fell 1.5% while UK shares fell 2.96%.

Economics

U.S. initial jobless claims fell to 2.98 million last week, from 3.17 million in the last week of April. Economists had forecasted 2.5 million. Continuing jobless claims for the week of May 3 struck 22.83 million compared to the 25.1 million forecasted and the previous week’s 22.38 million.

U.S. import prices declined 2.6% in April, versus a revised 2.4% drop in March. Export prices in the US fell 3.3% in April versus a revised 1.7% decline in the prior month.

Domestic supplies of natural gas gained 103 billion cubic feet for the week ended May 8, the U.S. Energy Information Administration reported. However, analysts expected a rise of 101 billion cubic feet.

Federal Reserve Bank of Minneapolis President Neel Kashkari is set to speak at 1:00 p.m. ET.

Data on money supply for the recent week will be released at 4:30 p.m. ET.

Federal Reserve Bank of Dallas President Robert Kaplan will speak at 6:00 p.m. ET.