The markets are headed for a weak start this Tuesday. This follows news of a resurgence in COVID-19 numbers in the EU, the U. S and across the world. Already, Melbourne, Australia’s second-largest city is back in lockdown. Another spike in COVID-19 cases could dampen hopes of a global economic reopening, and further, put a strain on the economy.
The markets are also facing uncertainty due to the stalemate between democrats and republicans on the economic bailout. While Democrats have indicated that they are close to a deal with the Whitehouse, it is still uncertain of when such a deal will materialize due to a disagreement on the employment benefits extension. Despite this environment of a mixed outlook, there are stocks doing well pre-market mainly due to strong quarterly results. Some of the biggest performers ahead of markets opening are:
Alterity Therapeutics Limited [NASDAQ:ATHE]
Alterity Therapeutics Limited is one of the top performers pre-market and is up by over 200%. This comes after the company announced that it had got positive data for its MSA drug on animal testing. The company reported that data from Dr. Nadia Stefanova’s laboratory showed that ATH434 reduced a-synuclein pathology, and also led to improved motor performance.
ATH434 is being developed as a treatment of Parkinson’s disease and MSA. The research showed that the treatment was well-tolerated and showed effectiveness in a predictive animal model. Commenting on the research Alterity’s Chief Medical Officer, Dr. David Stamler stated that the animal testing data supports positive safety and pharmacokinetic clinical data that the company has released. This is a big deal and could see the stock rally all through the day.
Danos Corporation [NYSE:DAC]
Danos Corporation is another top performer pre-market and is up by 26%. This follows the company’s strong Q2 results. The company reported an EPS of $1.71, slightly higher than the analyst consensus of $1.42. The company reported that its operating income increased to $116.8 million compared to $112.3 million in Q2 of 2019.
The company stated that it was moving forward with its growth strategy and that it was cushioned from the market volatility. In its statement, the company also added that it was fully committed to technological innovation in a bid to satisfy its customers. As its strong quarterly results filter into the market, it could open the day in the green.
Ossen Innovation Co Ltd [NASDAQ:OSN]
Ossen Innovation Co is another top performer this morning and is up by 21% in pre-market trading. There is no major news around this company at the moment, which makes it price action-driven. The stock has been gaining steadily, with volumes rising. This rally could be a breakout on a surge in volumes.