Stock Futures – Here’s What You Need To Know Before The Market Opens
U.S. stock futures continued to edge higher on Wednesday as investors remained confident that the Federal Reserve would not tighten monetary policy despite rising inflation.
While Dow Futures were up 0.24%, S&P Futures and Nasdaq Futures had risen 0.3% and 0.4% each at the time of writing.
Today, companies expected to report before the opening bell include Abercrombie & Fitch (ANF), Dick’s Sporting Goods (DKS) while American Eagle Outfitters (AEO), Snowflake (SNOW), and Williams-Sonoma (WSM) are expected to report after the market close.
Nabriva Therapeutics (NBRV) was the most actively traded stock as the biopharmaceutical company along with Sinovant Sciences, a Chinese biopharmaceutical company, announced positive results from Sinovant’s Phase 3 trial of lefamulin in adults with community-acquired bacterial pneumonia (CABP).
Novan Inc. (NOVN) was the biggest gainer in pre-market trading as the stock popped 862.8% at the time of writing. The clinical development-stage biotechnology company announced a 1:10 reverse stock split of its outstanding common stock. The company’s common stock will begin trading on a split-adjusted basis from May 26, 2021.
Larimar Therapeutics (LRMR) was the biggest laggard as the stock had dropped 39.3% at the time of writing. The clinical-stage biotechnology company announced that the U.S. Food and Drug Administration (FDA) has placed a clinical hold on its CTI-1601.
The company also announced the termination of a previously announced private placement financing.
In earnings news, tax software developer Intuit (INTU) reported disappointing results in the fiscal third quarter as the company missed analysts’ estimates due to a shift in the IRS tax filing deadline to May 17. The company posted net revenue of $4.17 billion in the fiscal third quarter, up 39% year-over-year, but failed to beat the Street’s estimates of $4.41 billion.
The company reported earnings of $6.07 per share that fell short of Street estimates of $6.47 per share.
Commenting on the results, Intuit’s CEO Sasan Goodarzi said, “We had a great tax season growing our share of total tax returns and executing our strategy of expanding our lead in the DIY category and transforming the assisted category. Small Business and Self-Employed Group delivered strong double-digit revenue growth and Credit Karma revenue reached an all-time high in the quarter.”
Meanwhile, cloud-based security solutions provider Zscaler, Inc. (ZS) had a blowout fiscal third quarter. The company’s earnings more than doubled year-over-year to $0.15 per share surpassing the Street’s estimate of $0.07 per share.
Revenues in the third quarter came in at $176.40 million, a jump of 60% year-over-year, topping analysts’ expectations of $163.71 million.
Jay Chaudhry, Chairman, and CEO of the company said, “Our Zero Trust Exchange platform is helping customers realize their digital transformation goals and architect for the new normal of the work-from-anywhere economy…Our strategic position with customers continues to strengthen, and we are executing well on our go-to-market initiatives. With strong business momentum, we are pleased to again increase our fiscal year guidance.”
American retailer of automotive parts and accessories, AutoZone (AZO) reported better-than-expected results for the fiscal third quarter. The company posted revenues of $3.7 billion, up 31.4% year-over-year which surpassed the Street’s estimates of $3.26 billion.
AZO reported earnings of $26.48 per share, soaring 84% year-over-year and beating consensus estimates of $20.14 per share.
AutoZone CEO Bill Rhodes said, “The investments we are making in Commercial pricing, service and assortment are strengthening our competitive position in this large, fragmented market. We intend to accelerate our Company’s historical Commercial growth rate as we increase our penetration in this market.”
In other news, Japanese multinational, Sony Group (SONY) plans to pump 2 trillion yen ($18 billion) into strategic investments in the three years from Fiscal 2021 through Fiscal 2023. The investments will span across content, technology, and share repurchases.
“Through investments in IP, group collaboration within Sony, and investment in social and mobile, we are excited for the opportunity to continue to expand our community,” said Sony Interactive Entertainment CEO Jim Ryan.
In M&A news, Garmin International Inc., a unit of navigation and communication device manufacturer Garmin (GRMN), has snapped up privately held firm AeroData, Inc. for an undisclosed amount. AeroData is a provider of aircraft performance software and services to commercial and business aviation. This acquisition is expected to complement Garmin’s digital services portfolio and will enhance the company’s offerings in the commercial aviation space.
Garmin’s aviation Executive Vice President Phil Straub said, “We look forward to building upon AeroData’s incredible success in providing advanced software solutions for both air transport and business aviation.”