Market Outlook for Thursday, October 1, 2020

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News - "Mid-Afternoon Market Update: Dow Jumps 350 Points; Iterum Therapeutics Shares Spike Higher"

Toward the end of trading Wednesday, the Dow traded up 1.28% to 27,804 while the NASDAQ rose 0.83% to 11177.49. The S&P also rose, gaining 0.92% to 3,366.11.


The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 7,191,340 cases with around 206,000 deaths. India confirmed a total of at least 6,225,760 confirmed cases and 97,490 deaths, while Brazil reported over 4,777,520 COVID-19 cases with 142,920 deaths. In total, there were at least 33,676,270 cases of COVID-19 worldwide with over 1,008,410 deaths, according to data compiled by Johns Hopkins University.


Leading and Lagging Sectors


Health care shares jumped 1.7% on Wednesday. Meanwhile, top gainers in the sector included Genetron Holdings Limited (NASDAQ: GTH), up 24%, and I-Mab (NASDAQ: IMAB), up 19%.

In trading on Wednesday, energy shares fell by 0.3%.


Top Headline


Micron Technology, Inc. (NASDAQ: MU) reported better-than-expected results for its fourth quarter, but issued weak profit forecast for the first quarter.

Micron reported quarterly earnings of $1.08 per share, exceeding analysts’ estimates of $0.99 per share. The company reported sales of $6.06 billion, surpassing expectations of $5.89 billion.

Micron said it expects Q1 adjusted EPS of $0.40 to $0.54, versus analysts’ estimates of $0.69. The company projects sales of $5.0 billion to $5.4 billion, versus expectations of $5.31 billion.

 

Equities Trading UP


Iterum Therapeutics plc (NASDAQ: ITRM) shares shot up 72% to $1.11 after the company said, based on discussions at a pre-NDA meeting with the FDA, it plans to proceed with an NDA submission for sulopenem etzadroxil/probenecid, a bilayer tablet, for the treatment of uncomplicated urinary tract infections in patients with a quinolone-resistant pathogen.

Shares of CynergisTek, Inc. (NASDAQ: CTEK) got a boost, shooting 23% to $1.37 after the company announced a 3-year risk management program with Valley Health Systems.


CTI BioPharma Corp. (NASDAQ: CTIC) shares were also up, gaining 101% to $2.11 after the company said it has reached an agreement with the FDA to submit an NDA for the potential accelerated approval of pacritinib as a treatment for myelofibrosis patients with severe thrombocytopenia. This follows the company's recent pre-NDA meeting with the agency.

 

Equities Trading DOWN

Aptorum Group Limited (NYSE: APM) shares tumbled 43% to $2.71. Aptorum Group priced its offering of 2.769 million Class A ordinary shares and warrants to purchase up to another 2.769 million Class A Ordinary Shares, at a combined public offering price of $3.25 per share and related warrant.

Shares of The9 Limited (NASDAQ: NCTY) were down 39% to $0.3169 after the company reported pricing of $8.7 million underwritten offering.

Oasis Petroleum Inc. (NASDAQ: OAS) was down, falling 31% to $0.2822 after the company filed for Chapter 11 bankruptcy protection.


Commodities


In commodity news, oil traded up 1.7% to $39.95, while gold traded down 0.6% to $1,892.80.


Silver traded down 4.3% Wednesday to $23.40 while copper rose 1.1% to $3.0235.


Euro zone


European shares closed mostly lower today. The eurozone’s STOXX 600 slipped 0.11%, the Spanish Ibex Index rose 0.04%, while Italy’s FTSE MIB Index fell 0.24%. Meanwhile, the German DAX 30 fell 0.51%, French CAC 40 fell 0.59% and London’s FTSE 100 fell 0.53%.

Spain reported a narrower current account surplus, which shrank to EUR 1.45 billion in July versus EUR 3.74 billion in the year-ago period. German jobless claims declined for the third straight month, falling by 8,000 in September.


Economics

US private businesses hired 749,000 workers in September, the ADP reported

The US economy contracted by an annualized rate of 31.4% in the second quarter versus a 31.7% decline in the second estimate.

The Chicago PMI climbed to 62.4 in September versus 51.2 in August.

The pending home sales index climbed 8.8% for August.

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

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Movers & Shakers - "Cannabis Movers & Shakers: Namaste, Australis Capital, Chemistree Technology, Copperstate Farms"

Here are the latest updates on leadership changes within the cannabis industry.

Namaste Taps Slava Klems As Interim CFO

Namaste Technologies Inc. (TSXV: N) (OTCMKTS: NXTTF), which recently launched a marketplace platform to sell cannabis accessories, confirmed some management changes.

On the heels of settling a trademark dispute, the Toronto-based company appointed seasoned finance executive Slava Klems as an interim chief financial officer.

The decision is effective Oct. 31.

Klems, who spent over a decade serving at AIMIA Inc. and Dominion Citrus Income Fund, succeeds Annie Holmes.

Namaste CEO Meni Morim welcomed Klems, highlighting she has an "impressive background in corporate finance with experience in technology and platform integration and has shown an incredible business acumen since joining the company."

Australis Capital Appoints Sameer Kumar To The Board

Cannabis industry veteran Sameer Kumar has agreed to join Australis Capital Inc. (CSE: AUSA) (OTCQB: AUSAF) as an independent member of its Board of Directors.

The news was disclosed just weeks after the resignation of Executive Chairman Scott Dowty from the board.

Previously, Sameer served as President and COO of Al Harrington's Viola Brands.

"AUSA continues to take decisive action to position the company for growth," stated Harry DeMott, Director of the Las Vegas-based company.

Chemistree Investee Immunoflex Formes Scientific Advisory Board

Immunoflex Therapeutics, an investee company of Chemistree Technology Inc. (CSE: CHM) (USOTCQB: CHMJF), welcomed David MacDonald to its executive team.

The Vancouver-based investment company focused on the cannabis sector also formed a three-member Scientific Advisory Board, consisting of Jian Han, Leonore Herzenberg and Vernon Oi, who agreed to be chairman.

MacDonald brings more than three decades of experience in drug development and leadership of biotech companies.

Previously, he served at MSI Methylation Sciences Inc., overseeing the research and development efforts with a focus on pharmaceutical product and clinical development.

Oi is a seasoned immunologist and Stanford alumni with more than 200 peer-reviewed publications and a number of patents.

Han, who is a Hudson Alpha Institute for Biotechnology Faculty Investigator, has over thirty years of experience in molecular diagnostic technologies and products.

He is the R10K project's director, leading a team of scientists studying biomarkers for 100 diseases.

Herzenberg is a Stanford Professor of Genetics, Stanford Flow Cytometry Chair in Genetics, and Stanford Professor of the Interdepartmental Program in Immunology.

"These are great advancements for ImmunoFlex," Chemistree President Karl Kottmeier said.

Last month, Chemistree opted to boost its cultivation and processing capacities in Sedro Woolley by 30%. Due to the pandemic, the construction of an additional grow room, which is launched in early March, was delayed.

Sugarleaf intends to utilize the expanded space for planting and other cannabis operations.

Former 4Front’s CFO Brad Kotansky Joins Copperstate Farms

Vertically integrated cannabis company Copperstate Farms Management, LLC tapped Brad Kotansky as Chief Financial Officer.

Prior to this, he oversaw the financial division at 4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF).

Kotansky has over fifteen years of executive experience, serving as a hedge fund portfolio manager and investment banker on Wall Street.

Pankaj Talwar, the CEO of the Phoenix, Arizona-based company, said Tuesday that they are “delighted” Kotansky opted to join them, highlighting that he “brings tremendous passion for the industry, keen financial acumen, and a love for building teams.”