US OPEN: Wall Street mixed as Hurricane Laura looms

• Top US and Chinese officials talked over Phase One trade deal
• Hurricane Laura is approaching the United States
• Weak CB Consumer Confidence reading
• Best Buy (BBY.US) stock fell despite positive quarterly report

 

US indices are trading in mixed moods. The Dow Jones and  Nasdaq are trading lower while the S&P 500 reached a new record high only to give up most of its today's gains. Earlier investors welcomed news regarding  potential coronavirus treatment and progress in US-China talks. AstraZeneca started a trial for an antibody-based cocktail which aims to treat and prevent Covid-19. Meanwhile, Top US and Chinese officials talked over the phone regarding the implementation of the historic Phase One Agreement.  Both sides see progress on resolving issues over trade deal reached and remain committed to the success of the agreement, the US Trade Representative’s Office said. However news regarding approaching hurricane and disappointing consumer sentiment data weighed on market sentiment. Hurricane Laura is set to make landfall by Wednesday evening, and most likely will disrupt activities of major oil refineries in east Texas and Louisiana. Meanwhile CB Conference Board recorded a drop to 84.8, well below market expectations of 93. Today's reading came in below figures from March and April. July's number was also revised down.

 

Best Buy (BBY.US) reported quarterly earnings of $1.71 per share for, while analysts expected earnings of  $1.08 a share. Revenue also came in above estimates. Online sales jumped 242% in the U.S. compared with the prior year, as the website drew higher traffic and more people converted from browsing to buying. However electronics retailer said it did not expect the current pace of sales to continue.

Exxon Mobil (XOM.US) will be removed from the Dow Jones Industrial Average on Aug. 31 together with Pfizer (PFE.US), Raytheon Technologies (RTX.US), while Salesforce.com (CRM.US), Amgen (AMGN.US) and Honeywell (HON.US) will be added. Exxon and its predecessor companies had been listed on the Dow since 1928, while Honeywell makes  a come-back after being removed in 2008.

 

Hormel (HRL.US)  reported quarterly earnings of 37 cents per share, 3 cents a share above analysts' expectations. Revenue came in slightly above market estimates. The food producer announced its retail business was strong, but that its foodservice business is still recovering.

 

Medtronic (MDT.US)  reported quarterly earnings of 62 cents per well above market expectations of  18 cents a share. The medical device maker revenue also beat estimates. Profit was lower compare to last year, but company noticed an increase in elective procedures that had slowed due to the pandemic.

Apple (AAPL.US) - judge’s ruling prevented from shutting down an Epic Games tool used to run offerings from hundreds of app makers. The ruling concerns a legal dispute that has seen Apple block Epic’s popular Fortnite game for iOS users.

Palo Alto Networks (PANW.US) reported quarterly earnings of $1.48 per share,  9 cents a share above Wall Street expectations. The cybersecurity company’s revenue also beat expectations. Company posted an upbeat forecast as the  demand for security products increased thanks to the pandemic.

 

AstraZeneca (AZN.US) started a trial for an antibody-based treatment which supposed to treat and prevent Covid-19. The initial study will determine if the treatment is safe and tolerable. If this would be the case would then company would test the cocktail to both prevent infection as well as a treatment for patients already infected.

 

Tesla (TSLA.US) -  CEO Elon Musk tweeted that battery capacity could leap by up to 50% over the next three to four years. The tweet comes ahead of Tesla’s “Battery Day” event which will take place on 22nd September.