Palantir Stock- Alibaba, Nuance, Microsoft: What to Watch When the Market Opens
Here’s what we’re watching ahead of the opening bell on Monday.
- Stocks look to be pulling back from last week’s record highs. Futures tied to the S&P 500 edged down 0.1% after the benchmark stocks gauge posted its 20th all-time closing high of 2021 on Friday. Futures for the technology-heavy Nasdaq-100 index were down 0.2%. Read our full markets wrap.
What’s Coming Up
- After the bell, software firm Simulations Plus is due to report for the fourth quarter.
- Earnings seasons kicks off in earnest later this week with reports from the likes of JPMorgan Chase, Bank of America and Pepsi.
Market Movers to Watch
- Alibaba shares in Hong Kong surged 6.5%, adding nearly $40 billion in market cap, after the tech giant was fined by the Chinese government. Investors welcomed the clarity over the company’s future after fines were announced. Its more widely traded New York shares are up 6.2% premarket.
- Nuance Communications is up nearly 23% after it agreed a $19.7 billion takeover by Microsoft. The software giant will pay $56 per share in cash for the transcription software firm. Microsoft shares are little changed. Nuance shareholders who may be in a position to gain from the deal include hedge funds like Coatue Management, which has a 5.8% holding, according to FactSet, and GameStop victim, Melvin Capital Management with 3.5%.
- Plug Power is down 2.6% premarket after Morgan Stanley reduced its rating on the fuel cell provider.
- Palantir Technologies, the data analysis and software firm founded by Silicon Valley veteran Peter Thiel, is up 2.9% premarket and attracting a lot of debate among Reddit users on r/WallStreetBets. The stock was down more than 40% between early February and late March, but has rebounded some especially in the past three days.
- The highest profile Reddit YOLO stock, GameStop, is down 0.7% on no particular news.
- Another name getting some Reddit attention is Editas Medicine, up 3.1% premarket.
- Nasdaq-listed Aphria Inc, the $5 billion cannabis grower, tumbled 8.2% premarket after disappointing third quarter earnings Monday morning. It posted a loss per share of 15 cents, much worse than the 5 cent loss forecast, according to FactSet.
- Boeing is off 0.7%. In just over a week’s time, shareholders will vote on whether a series of board changes made in the past two years are enough to help restore confidence in the aerospace group after tragic crashes for its 737 MAX planes and other issues.
- At the end of February, 40 mutual funds reported total returns of at least 100% over the prior 12 months, according to Morningstar. Among exchange-traded funds, 59 had one-year returns greater than 100% at the end of February; one month later, according to FactSet, 218 did.
- Defaults for an index of speculative-grade loans to U.S. companies over the past year fell to 3.15% as of March, according to S&P Global Market Intelligence’s LCD. That is the lowest level since last April and down from the measure’s 10-year peak in September at 4.17%.
- On this day in 1837, immigrants William Procter, an English candlemaker, and James Gamble, an Irish soapmaker, opened shop in Cincinnati. The business boomed, and soon each man put up $3,596.47 to launch Procter, Gamble & Co.
Chart of the Day
Prices are surging for raw materials, leading to higher costs for companies from home builders to clothing makers. If history repeats, that will be a boon to corporate bottom lines and investors as well.