US OPEN: Wall Street opens mixed as COVID-19 cases surge

US indices started today's session mixed, with the Dow Jones and the S&P 500 trading in the red and the Nasdaq is trading slightly higher. After initial optimism regarding vaccine faded away investor focus shifted to rising coronavirus infections and concerns about the economic outlook.  Yesterday US reported record number of 142 906 new cases, which is the highest number since the pandemic began. The number of hospitalizations climbed to new record of 65,368. Hospitals across the country have been reporting that their facilities and personnel are being stretched beyond capacity, prompting several states and cities again to try to curb the spread of the disease with further restrictions. Yesterday New York Governor Andrew Cuomo imposed further restrictions.  Also investors remained concerned about the size of the US fiscal stimulus in a divided Congress. On the data front, US jobless claims fell to a seven-month low 0.709 million, but remained at levels highlighting concerns over the slowing recovery in the labor market. Meanwhile annual inflation rate in the  fell to 1.2% in October of 2020 from 1.4% in the previous month and below market expectations of 1.3%.

Fossil Group (FOSL.US) — rose more than 25% after company posted its quarterly results that included widening margins. Watchmaker earned an adjusted 31 cents per share on $435.5 million of net sales  which was a decline in net sales of 19% year over year. Fossil also said it had more than $300 million in cash and cash equivalents as of Oct. 3.

Edgewell Personal Care (EPC.US) –  consumer products corporation which owns brands such as Schick, Wilkinson, Edge and Playtex reported better than expected quarterly results. Company earned 59 cents per share compare to analysts' expectations of 57 cents per share. Revenue also came in above market expectations.  The company also provided upbeat fiscal guidance for next year.

Moderna (MRNA.US) confirmed that has sufficient data from a late-stage trial of its COVID-19 vaccine candidate to begin a planned interim analysis.  However, drugmaker did not provide any details when it plans to release data on the vaccine’s effectiveness.

 

Alibaba (BABA.US) reported record Singles Day sales of about $75 billion, with the event actually extending over several days this year.  Recently Chinese e-commerce giant has been under pressure as investors remained concerned about new regulations for tech companies and the postponement Ant Group’s initial public offering.

 

Nike (NKE.US) stock was rated “outperform” by the RBC Capital Markets. Investment bank considers Nike a “best-in-class global athletic play” and predicts a faster than expected recovery from COVID-related disruption.