The markets are headed for a mixed start to the day. After several days of selloffs, things have stabilized with tech stocks leading the way. Investors are hopeful that a stimulus package if it comes through, would help support the economy after it took a hit due to the COVID-19 lockdowns. Nonetheless, sentiment remains weak as elections approach.
Due to the huge difference in policies between President Trump and his main rival Joe Biden, investors are getting out of risky investments as they await the election and its outcome. This is likely to continue weighing in on the markets in the short term. There is also the fact that the COVID-19 pandemic continues to hang over the markets like a bad cloud.
So far the numbers don’t seem to be slowing down, and in some places, they are accelerating. Essentially, this means a return to normalcy is still a far-fetched idea until a viable vaccine is found. Despite the mixed market sentiment, there are stocks that are outperforming the markets this morning. Most of the early morning gainers are stocks that have released strong quarterly results that point to their underlying fundamental strength. Some of the big performers this morning are as follows:
DavidsTEA Inc [NASDAQ: DTEA]
DavidsTEA is a big gainer this morning and is up by over 30%. This comes after the company released strong Q2 financial results. The company announced that e-commerce sales increased by 189.9%, while wholesale sales rose to $23 million.
The company reported that its Q2 results were a reflection of a successful strategic shift towards digital-first. Commenting on the results, CFO Frank Zitella stated that the company was impressed with the spillover of Q1 growth into Q2 that led to a 25% growth in sales. He added that customers were responding well to the company’s online experience and that the current strategy would see the company return to profitability.
IKONICS Corporation [NASDAQ: IKNX]
IKONICS Corporation is another big gainer this morning after it released Q2 results for 2020. While revenues declined due to the COVID-19 pandemic, the company took decisive steps to protect liquidity, and grow as normalcy returns. This seems to have excited the market more than the drastic drop in revenues.
NanoVibronix Inc [NASDAQ: NAOV]
NanoVibronix Inc is a top performer this morning and is up by over 70% pre-market. This follows the company’s announcement that it had got FDA approval to introduce NanoVibronix UroShield® in the U.S. UroShield® is an ultrasound product that prevents bacteria buildup on urinary catheters.