Benzinga | Sep 1, 2020 10:22AM EDT

Mid-Morning Market Update: Markets Mostly Higher; Zoom Video Beats Q2 Estimates

Following the market opening Tuesday, the Dow traded up 0.07% to 28449.38 while the NASDAQ rose 0.90% to 11881.94. The S&P also rose, gaining 0.24% to 3508.68.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 6,031,280 cases with around 183,600 deaths. Brazil confirmed a total of over 3,908,270 COVID-19 cases with 121,380 deaths, while India reported a total of at least 3,691,160 confirmed cases and 65,280 deaths. In total, there were at least 25,506,750 cases of COVID-19 worldwide with over 851,090 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Information technology shares gained 0.9% on Tuesday. Meanwhile, top gainers in the sector included Zoom Video Communications, Inc. (NASDAQ:ZM), up 43%, and Eastman Kodak Company (NYSE:KODK), up 29%.

In trading on Tuesday, utilities shares fell by 1.4%.

Top Headline

Zoom Video Communications Inc (NASDAQ:ZM) reported better-than-expected results for its second quarter and also issued a strong forecast.

Zoom reported quarterly adjusted earnings of $0.92 per share, surpassing analysts' estimates of $0.45 per share. The company reported sales of $663.50 million versus expectations of $500.45 million.

Zoom is forecasting third-quarter revenue to come in a range of $685 million to $690 million. The company sees earnings per share hitting a range of 73 cents to 74 cents. Zoom updated its full-year guidance thanks to the strong quarter. It now sees full-year revenue hitting a range of $2.37 to $2.39 billion, a year-over-year increase of 281 to 284%.



Equities Trading UP

J.Jill Inc (NYSE:JILL) shares shot up 141% to $0.93 after the company announced a transaction support agreement that would result in a waiver of any past non-compliance with the terms of the company's credit facilities.

Shares of Jounce Therapeutics, Inc. (NASDAQ:JNCE) got a boost, shooting 45% to $7.02. Gilead Sciences and Jounce Therapeutics disclosed an exclusive license agreement for novel immunotherapy program.

Zoom Video Communications, Inc. (NASDAQ:ZM) shares were also up, gaining 43% to $465.72 after the company reported better-than-expected results for its second quarter and also issued a strong forecast.



Equities Trading DOWN

Applied UV, Inc. (NASDAQ:AUVI) shares tumbled 20% to $9.25. Applied UV shares gained 132% on Monday after the company prices its IPO at $5 per share.

Shares of ScanSource, Inc. (NASDAQ:SCSC) were down 15% to $20.98 after the company reported worse-than-expected Q4 results.

ADiTx Therapeutics, Inc. (NASDAQ:ADTX) was down, falling 13% to $2.78. Aditxt, last week, submitted emergency use authorization application for AditxtScore test for COVID-19.

Commodities

In commodity news, oil traded up 1.1% to $43.09, while gold traded up 1% to $1,997.70.

Silver traded up 2.2% Tuesday to $29.21, while copper rose 0.3% to $3.07.

Euro zone

European shares were mostly higher today. The eurozone's STOXX 600 rose 0.3%, the Spanish Ibex Index rose 0.4%, while Italy's FTSE MIB Index gained 0.7%. Meanwhile, the German DAX 30 gained 0.8%, French CAC 40 rose 0.4% and London's FTSE 100 fell 1.3%.

The eurozone manufacturing index recorded growth for the second straight month during August. The IHS Markit French manufacturing PMI increased to 49.8 in August versus a preliminary reading of 49, while German manufacturing index slipped to 52.2 from a preliminary reading of 53.

Economics

The IHS Markit manufacturing PMI slipped to 53.1 in August versus a preliminary reading of 53.6.

The ISM manufacturing PMI climbed to 56 in August versus 54.2 in July.

US construction spending rose 0.1% in July, versus a revised 0.5% decline in June.

Federal Reserve Governor Lael Brainard is set to speak at 1:00 p.m. ET.