It’s a mixed day in the .U.S markets in early morning trading. The NASDAQ is up but the Dow and the S&P 500 are all in the red. This comes following a mix of good and bad news.
The good news influencing the market today is data showing that jobless claims have dropped below 800k. The U.S Department of Labor data on unemployment insurance claims shows that initial jobless claims for the week that ended on October 24th stood at 774k, slightly lower than the 787k that was reported a week earlier.
On top of that, continuing jobless claims for the week that ended on October 17th stood at 7.775 million, compared to a week earlier when those numbers stood at 8.373 million. The latest data marks the 9th week in a row that jobless claims have held below 1 million. For the markets, this is a positive sign that the economy is resilient despite the pandemic and uncertainty of when a stimulus package will be passed.
\The bad news is that cases of the pandemic continue to rise not just in the U.S but globally. Several countries have gone back to the strict lockdowns that had been put in place when the pandemic started. This has put a dent to hopes of a speedy economic recovery until a definitive vaccine is found.
According to the Chief Economist for JLL, the rapid increase in cases means that there is a high probability of the government locking down a large part of the economy again. Even in this mixed environment, there are stocks that are set to start the day on a high note. Some of them are as below:
Pinterest Inc [NYSE: PINS]
Pinterest is in the green pre-market and is up by over 30%. This comes after the company released strong Q3 results. The company reported that in Q3, revenues rose by 58% to hit $443 million. The company also reported global monthly users rose by 37% to a high of 442 million. These results are likely to see the stock keep gaining through the day.
Inphi Corporation [NASDAQ: IPHI]
Inphi Corporation is up by over 20% in pre-market trading. This follows news that Marvell was buying the company in a $10 billion deal that would strengthen Marvel’s data center and 5G business. News of this deal could see the company keep gaining all through the day, and outperform the market.
IT Tech Packaging Inc [NYSE: ITP]
IT Tech Packaging Inc is up by over 30% pre-market. This upside push comes two days after the company announced that it was carrying out a detailed emergency response drill in Hebei Baoding Dongfang for radiation accidents. The goal of the drill is to help the company employees practice how to respond in emergency cases.