Friday Pre-Market: Here’s What You Need To Know Before The Market Opens
U.S. Stock futures showed a slightly higher open on Friday as Treasury yields hovered near multi-month lows. The focus is on US consumption data to assess the Federal Reserve’s next monetary policy move amid escalating inflationary pressure.
Dow futures are up 0.15%, S&P futures are up 0.14% and Nasdaq futures are up 0.15% at the time of writing.
Investors remain fixated on the Fed for any sign of a change in dovish policy that continues to support stocks. Fed Chairman Jerome Powell has already reaffirmed that inflation is likely to be transient and that the central bank will continue to support the economy.
Charles Schwab Corp. (SCHW), First Horizon Corp. (Tennessee) (FHN), State Street Corp. (STT) and Kansas City Southern (KSU) are expected to report quarterly earnings before the market opens.
Ion Geophysical Corp. (IO) was the most actively traded stock during the pre-trade session, with 1.64 million shares changing hands at the time of writing. The stock rose 39.87% after the announcement of preliminary second quarter results indicating that revenue could increase 40% sequentially to $ 20 million.
Aehr Test Systems (AEHR) was one of the biggest winners of the pre-market session with a jump of 27.76% at the time of writing to a volume of 1.05 million shares. The spike comes after the semiconductor reliability testing and qualification equipment supplier released its fourth quarter results. Revenue for the quarter increased 102% to $ 7.6 million.
FibroGen (FGEN) was the biggest loser in the pre-market session, losing 34.26% at the time of writing. The stock was hammered after the Food and Drug Administration voted against approving its drug candidate Roxadustat for the treatment of anemia in adults. The drug is currently approved in China, Japan and Chile.
In the news of mergers and acquisitions, IBM (IBM) has has reached an agreement to acquire data solutions service provider Bluetab. While the two have yet to confirm the terms of the deal, the transaction is expected to close in the third quarter. The acquisition is expected to strengthen IBM’s prospects in data management.
Meanwhile, Alphabet’s (GOOGL) Google Cloud has entered into a multi-year strategic partnership with Bell Canada. The two come together to develop new innovations around cloud solutions for corporate clients. In addition, Google Cloud must support Bell Canada’s digital transformation.
Amazon (AMZN) is under investigation for allegedly selling products that present a danger to people. The U.S. Consumer Product Safety Commission has sued the e-commerce giant for selling dangerous items, including hairdryers and carbon monoxide detectors that don’t do their job.
The shares of Progressive Corp. (PGR) fell 2.57% on Thursday after the company delivered mixed results in the second quarter. Earnings per share were $ 1.34, compared to $ 1.08 per share expected. Second-quarter revenue, on the other hand, totaled $ 11.48 billion, below the $ 11.52 billion expected by analysts.
Morgan Stanley (MS) delivered a good quarter impacted by the acquisition of E * TRADE. Net income applicable to shareholders jumped to $ 3.5 billion, or $ 1.85 per share, above the expected $ 1.65 per share. Net revenue also reached $ 14.8 billion, up from $ 13.7 billion reported in the same period last year, and is higher than the consensus estimate of $ 13.96 billion.
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