Market Outlook for Friday, July 10, 2020

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News - "Mid-Afternoon Market Update: Dow Falls Over 300 Points; Veritone Shares Spike Higher"

Toward the end of trading Thursday, the Dow traded down 1.2% to 25,754.70 while the NASDAQ rose 0.39% to 10,532.55. The S&P also fell, dropping 0.55% to 3,152.65.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 3,055,140 cases with around 132,300 deaths. Brazil confirmed a total of over 1,713,160 COVID-19 cases with 67,960 deaths, while India reported a total of at least 767,290 confirmed cases and 21,120 deaths. In total, there were at least 12,062,860 cases of COVID-19 worldwide with over 549,900 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Information technology shares rose 0.3% on Thursday. Meanwhile, top gainers in the sector included Veritone Inc (NASDAQ: VERI), up 26%, and OneConnect Financial Technology Co., Ltd. (NYSE: OCFT), up 17%.

In trading on Thursday, energy shares fell 4%.

Top Headline

Walgreens Boots Alliance Inc (NASDAQ: WBA) reported weaker-than-expected earnings for its third quarter, while sales exceeded views.

Walgreens reported quarterly earnings of $0.83 per share, missing analysts’ estimates of $1.18 per share. The company reported sales of $34.60 billion, exceeding expectations of $34.32 billion.

Walgreens said it expects FY20 adjusted earnings of $4.65 to $4.75 per share, versus analysts’ estimates of $5.42 per share.


Equities Trading UP

CleanSpark, Inc. (NASDAQ: CLSK) shares shot up 42% to $4.39 after the company announced it won a $2.9 million grant with ReJoule from the California Energy Commission.

Shares of Veritone, Inc. (NASDAQ: VERI) got a boost, shooting 26% to $15.35 after the company raised its Q2 guidance. Veritone said it now expects an adjusted net loss of $5.8 million to $6.0 million for the second quarter and revenue between $13.1 million and $13.3 million.

Birks Group Inc. (NYSE: BGI) shares were also up, gaining 67% to $1.33 after the company reported a 12.2% year-over-year growth in FY20 sales.


Equities Trading DOWN

Bed Bath & Beyond Inc. (NASDAQ: BBBY) shares tumbled 24% to $7.92 after the company reported a wider-than-expected loss for its first quarter and announced plans to close 200 stores in the next two year.

Shares of NanoViricides, Inc. (NYSE: NNVC) were down 11% to $7.78. NanoViricides priced its 1.37 million share offering at $7.30 per share.

AZZ Inc. (NYSE: AZZ) was down, falling 11% to $29.49 after the company reported a significant year-over-year decline in Q1 earnings.

Commodities


In commodity news, oil traded down 3% to $39.68, while gold traded down 0.8% to $1,806.60.

Silver traded down 0.9% Thursday to $18.99, while copper rose 0.7% to $2.8445.

Euro zone


European shares closed lower today. The eurozone’s STOXX 600 fell 0.77%, the Spanish Ibex Index fell 1.22%, while Italy’s FTSE MIB Index fell 1.98%. Meanwhile, the German DAX 30 dropped 0.04%, French CAC 40 slipped 1.21% and UK shares fell 1.73%.


Economics

U.S. initial jobless claims declined to 1.314 million for the latest week, versus prior reading of 1.427 million. However, analysts were expecting a reading of 1.375 million.

U.S. wholesale inventories rose 5.4% for May, versus analysts’ expectations for a 4% decline.

Domestic supplies of natural gas climbed 56 billion cubic feet for the week ended July 3, the U.S. Energy Information Administration reported. However, analysts were projecting a rise of 55 billion cubic feet.

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

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Movers & Shakers - "Sara Gullickson Launches New Cannabis Consulting Firm"

Cannabis entrepreneur Sara Gullickson has launched The Cannabis Business Advisors, or CB Advisors.

This multi-faceted consulting firm provides strategic business guidance for cannabis license applicants and current license holders throughout all stages of growth.

Gullickson, who was named one of the 20 Women Set to Dominate the International Cannabis Space by Benzinga, will serve as CEO of the company.

Over the past decade, Gullickson has advised cannabis license holders, policy makers and stakeholders in 24 states and five countries.

"CB Advisors serves both privately held and publicly traded entities with licensing application, operational analysis, merger and acquisition support, and a full spectrum of business development services," Gullickson told Benzinga. "Our first custom business package is designed for Arizona operators to ensure the compliant implementation of new testing standards under SB-1494, which goes into effect in November."

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