Stock Futures – Here’s What You Need To Know Before The Market Opens
U.S. stock futures were up on Friday after Federal Reserve officials calmed investor concerns regarding the tightening of fiscal policy and stated there were no immediate plans to raise interest rates. This has been a choppy week for investors as U.S. markets seemed to be making a recovery yesterday after three days of losses after consumer price data pointed towards rising inflation.
While Dow Futures and S&P Futures were up 0.4% and 0.6% each, Nasdaq Futures had risen 0.9% at the time of writing.
Today, companies including Protalix BioTherapeutics (PLX), Limbach Holdings (LMB), and Sohu.com (SOHU) are expected to report before the earnings bell while Hall of Fame Resort & Entertainment (HOFV) is expected to report after the market close.
BIOLASE, Inc (BIOL) was the most actively traded stock and the biggest gainer in pre-market trading having popped 28.4% at the time of writing. The medical devices company posted revenues of $8.1 million in the first quarter, up 70% year-on-year, driven by a 139% year-on-year growth in laser systems sales.
However, the company’s net loss widened to $6.9 million in Q1 versus a loss of $6 million in the same quarter last year.
Canadian Pacific Railway (CP) was the biggest laggard in pre-market trading as the stock crashed 79.6% at the time of writing. The transportation company was outbid by Canadian National Railway on its move to acquire Kansas City Southern.
Kansas City Southern (KSU) said yesterday that it had accepted Canadian National Railway’s $33.6 billion acquisition offer resulting in putting an end to CP’s $29 billion bid for the company. However, CP now has five business days to make a revised offer.
In earnings news, Chinese e-commerce giant Alibaba ((BA)(BA)) reported its Q4 results with its first-ever operating loss of 7.7 billion yuan since its IPO in 2014. The main reason for the loss was the 18.2 billion yuan antitrust fine that Chinese regulators slapped on the company in April this year. The company would have reported an operating profit of 10.6 billion yuan, excluding that fine.
The company posted revenues of 187.4 billion yuan, up 64% year-over-year, beating consensus estimate of 179.9 billion yuan. Alibaba’s CEO Daniel Zhang stated, “We remain very excited about the growth of China’s consumption economy, which is benefiting from the acceleration of digitalization in all aspects of life and work.”
Meanwhile, The Walt Disney Company (DIS) delivered mixed results in the second quarter with revenues of $15.6 billion, a decline of 13% year-on-year and missing analysts’ expectations of $15.86 billion. The entertainment giant reported adjusted earnings of $0.79 per share, an increase of 32% year-on-year, blowing past consensus estimates of $0.26 per share.
The Walt Disney Company’s CEO, Bob Chapek said, “We’re pleased to see more encouraging signs of recovery across our businesses, and we remain focused on ramping up our operations while also fueling long-term growth for the Company. This is clearly reflected in the reopening of our theme parks and resorts, increased production at our studios, the continued success of our streaming services, and the expansion of our unrivaled portfolio of multiyear sports rights deals for ESPN and ESPN+.”
Biotechnology company Selecta Biosciences (SELB) reported mixed results in the first quarter as revenues beat consensus estimates but losses widened. The company reported a net loss for Q1 of $24.6 million or $0.22 per share, compared to a net loss of $19.6 million or $0.21 per share in the same quarter last year. Analysts were expecting the company to report a loss of $0.12 per share.
SELB posted revenues of $11.1 million in 1Q, surpassing analysts’ expectations of $7.52 million.
Selecta CEO Carsten Brunn said, “We regained exclusive rights to our MMA program and now have two proprietary gene therapy programs to rapidly follow our ongoing empty capsid study. Additionally, we continue to progress our enzyme program, with an expected IND filing by the end of 2021 in IgA nephropathy, and topline data from the Phase 3 DISSOLVE program for SEL-212 anticipated in the second half of 2022.”
Meanwhile, Alphabet’s (GOOGL) Google has won cloud computing contracts from SpaceX and PayPal (PYPL). While GOOGL will provide cloud-based infrastructure to SpaceX to deliver its satellite-based broadband service to global customers, it will provide a wide range of cloud services to PayPal to enable the digital payments company to ramp up its capacity to quickly process a larger volume of transactions.
Google Cloud infrastructure executive Urs Hölzle said, “Applications and services running in the cloud can be transformative for organizations, whether they’re operating in a highly networked or remote environment.”
In M&A news, INDUS Realty Trust (INDT), which is mainly engaged in industrial or logistics properties, has snapped up an industrial and logistics building in Pennsylvania for $11.7 million, excluding transaction costs.
INDUS Realty President and CEO Michael Gamzon said, “We are thrilled to expand our presence in the core Lehigh Valley market with a building that is leased to a credit tenant. We believe this acquisition provides the opportunity to create significant value over time as the current in-place rent is below market and the excess land on the site provides options for potential future improvements.”