The equity markets are up this morning. The NASDAQ, the S&P 500, and the Dow are all at their highest levels in close to a month. This comes after renewed hopes of a stimulus deal between democrats and republicans to save the economy. The deal if agreed upon is likely to be actualized before Election Day. The optimism around it has seen the markets rally despite worsening jobless numbers.
The latest unemployment data shows that last week, the number of people filing for unemployment insurance benefits pushed through the 840k mark. Though the total numbers dipped from the 11 million high that was recorded in March at the height of the lockdowns, it still points to a relatively depressed economy. Optimism around an agreement increased after Nancy Pelosi met and discussed the package yesterday with Treasury Secretary Steven Mnuchin. Reports about the meeting state that Mnuchin stated that the President was much interested in reaching a deal.
Analysts are looking forward to a deal, with Jeffrey Buchbinder of LPL Financial Equity stating that a deal would deliver a surprise to the markets in October. With optimism on the rise, there are stocks that are doing exceptionally well pre-market. Some of the biggest stock gainers this morning that could close the day in gains are as below:
Medigus Ltd [NASDAQ: MDGS]
Medigus is a top performer pre-market and is up by over 55% at the time of writing. This follows news that the company had entered into an e-commerce brand marketing on Amazon marketplace. The company stated that it had entered into a definitive agreement to buy a majority stake in Smart Repair Pro Inc and Purex Inc. These are data-driven eCommerce companies that run on the Amazon Marketplace. Under the deal, Medigus Ltd will have 50.01% in the two companies and will be paid for in cash and shares. Commenting on the development, Medigus CEO, Liron Carmel stated that the company was committed to growing its footprint in the eCommerce space.
Pacific Drilling S.A. [NYSE: PACD]
Pacific Drilling S.A. is another big gainer this morning and is up by over 15% pre-market. This is largely momentum-driven and follows the company’s announcement of strong Q2 results 4 days ago. The company reported that it had sales of $38.91 million and that earnings were up by 80.31% in the quarter.
Sanchez Midstream Partners LP [NYSE: SNMP]
Sanchez Midstream Partners LP is a top performer this afternoon and is up by over 200% this morning. This is largely a price action move and is backed by the improved sentiment in the overall market.