US equity futures rose on Wednesday; with the best-performing tech names positioned to erase some of their losses from earlier this week.
The market kicked off this week strong, after Pfizer (PFE) and BioNTech (BNTX) announced that their coronavirus vaccine candidate prevented more than 90% of infections in a large-scale Phase 3 clinical study.
The news saw investors rotate out of tech names including Facebook (FB) and Amazon (AMZN); while shifting their focus instead to stocks which would benefit from an accelerated economic recovery.
Today's shift back into tech names may reflect questions surrounding making vaccines available, as well as additional US fiscal stimulus.
TODAY'S TOP HEADLINES
Politics: Biden Presses On With White House Transition. (The WSJ)
Biden called Trump’s unwillingness to concede the presidential election an “embarrassment” but said it wouldn’t impede his transition.
Today's Economical Announcements.
00:00AM - ★★★ - N/A (Previous: N/A)
STOCKS IN THE SPOTLIGHT
Pre-Market Movers & News Related Stocks.
Datadog (DDOG): [EARNINGS] Earned an adjusted 5 cents per share for its latest quarter, compared to a 1 cent consensus estimate, while revenue beat estimates as well. The cloud-monitoring company also issued an upbeat outlook.
Aurora Cannabis (ACB): [NEWS] Announced plans to raise $125 million through a secondary stock offering. Under terms of the offering, each share would be priced at $7.50 and the buyer would receive a warrant to purchase another share at $9 within 40 months.
Lyft (LYFT): [EARNINGS] Lost more than $280 million during the third quarter, more than double the loss it reported in the same quarter a year ago. However, Lyft reported better than expected revenue for the quarter and also said it was working on developing a new food delivery service.
Tapestry (TPR): [UPGRADE] Upgraded to “outperform” from “market perform” at Cowen, which points to a favorable pricing and profit margin mix as well as a refreshed marketing strategy for the company’s Coach Outlet operations.
fuboTV (FUBO): [EARNINGS] Reported a larger than expected loss for its latest quarter, but revenue exceeded forecasts and the company also gave an upbeat current quarter outlook. It expects to end the year with 500,000 to 510,000 subscribers, which would be up 58% to 62% compared to a year earlier.
Alibaba (BABA): [NEWS] Is under pressure, amid concerns about tighter regulation of big tech firms by the Chinese government. Separately, Alibaba reported an upbeat start to the e-commerce giant’s annual “Singles Day” event, with more than $56 billion in orders as of this morning.
Tencent Music (TME): [EARNINGS] Reported better than expected profit and revenue for its latest quarter, boosted by growth in paying users for its music streaming service. Tencent said it is seeing a continued improvement in the retention rate of paying users.
Lemonade (LMND): [EARNINGS] Reported a loss of 57 cents per share, smaller than the 64 cent loss that Wall Street had anticipated, while the mobile-based insurance company’s revenue also exceeded forecasts. Lemonade also gave a better than expected current quarter outlook.
Sanmina (SANM): [EARNINGS] Beat estimates by 32 cents with adjusted quarterly profit of $1.10 per share, with the electronics manufacturing company’s revenue beating estimates as well. Sanmina also issued an upbeat outlook, saying its strategy was working despite a challenging economic environment.
General Electric (GE): [NEWS] Has ended its “Corporate Audit Staff” program, as part of CEO Larry Culp’s effort to simplify operations. The program allowed workers to rotate through various divisions of the company to groom them for future leadership positions.
AT&T (T): [NEWS] AT&T’s WarnerMedia unit is expected to lay off up to 1,750 workers, about 7% of its staff, according to multiple reports.
Fair Isaac (FICO): [EARNINGS] Reported adjusted quarterly earnings of $3.25 per share, well above the $2.32 consensus estimate, while the company behind the popular FICO credit scores also saw revenue exceed Wall Street forecasts.
GAINERS: WES, SPR, PDCE, TRIP, JWN
DECLINERS: NVAX, ZM, BABA
Inhibikase Therapeutics (IKT) (Low: 10, High: 12) (Est. Vol: $15.0M)
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