Pre-Bell｜Futures Fall as Treasury Yields Hover near Multi-Year Highs; One Pharmaceutical Company Soared 66%
Futures tracking Wall Street's main stock indexes fell on Friday as U.S. Treasury yields hovered near multi-year highs following hawkish comments by Federal Reserve Chair Jerome Powell.
Market Snapshot
At 8:14 a.m. ET, Dow e-minis were down 88 points, or 0.26%, S&P 500 e-minis were down 11.75 points, or 0.27%, and Nasdaq 100 e-minis were down 51.75 points, or 0.35%.
Pre-Market Movers
$Lipella Pharmaceuticals Inc(LIPO)$. — Shares soared 66.45% after announcing that the U.S. FDA has approved an Investigational New Drug (IND) application for a multi-center, phase-2a, dose-escalation clinical trial to assess the safety and efficacy of LP-310 in patients with symptomatic oral lichen planus (OLP), a highly morbid condition with no effective treatment.
SolarEdge Technologies — The solar stock tumbled nearly 29% after the company lowered its third-quarter guidance post market Thursday. SolarEdge CEO Zvi Lando cited substantial and unexpected cancellations among the reasons for the cut. On Friday, Deutsche Bank downgraded SolarEdge, Sunrun and Sunnova to hold from buy based on declining demand. Sunrun and Sunnova both fell around 9%, while Enphase Energy dropped 15.7%. The Invesco Solar ETF was down 5.2%.
Schlumberger — The oil and gas company slumped 1.8% after reporting revenue for the third quarter of $8.31 billion, missing estimates of $8.33 billion, per LSEG. Its earnings per share of 78 cents, however, beat estimates of 77 cents.
Intuitive Surgical — Shares slipped nearly 6.6% after the company posted a revenue miss following Thursday’s close. Revenue came in at $1.74 billion, versus the $1.77 billion expected from analysts polled by LSEG. However, adjusted earnings per share came in at $1.46, topping expectations of $1.41.
Regions Financial — The regional bank stock fell 4.7% after reporting an earnings per share of 49 cents for its third quarter, less than the 58 cents expected from analysts polled by StreetAccount. Net interest also fell short at $1.29 billion, versus the $1.32 billion expected.
Knight-Swift — Shares of the transportation company soared 12.4% after Knight-Swift beat estimates on the top and bottom lines in its third-quarter report. The company reported 41 cents in adjusted earnings per share on $2.02 billion of revenue. Analysts surveyed by LSEG expected 36 cents per share and $1.89 billion of revenue. Total revenue rose more than 6% year over year. CEO David Jackson said in a press release that the less-than-truckload market is showing relative strength.
American Express — Shares were little changed after the credit card company posted its third-quarter results. American Express earned $3.30 per share on revenue of $15.38 billion. Analysts polled by LSEG expected a profit of $2.94 per share on revenue of $15.36 billion.
Market News
EV Maker Vinfast Strikes Shares Deal with Yorkville for up to $1.0 Bln
Vietnamese electric vehicle (EV) maker VinFast said on Friday it has entered into a share subscription of up to $1 billion with U.S.-based fund Yorkville Advisors as it seeks to fund expansion in overseas markets.
VinFast has the option, but not the obligation, to require Yorkville to subscribe for up to $1.0 billion worth of ordinary shares in VinFast at any time during the term of the agreement, VinFast said in a filing to the U.S. securities authority.
AmEx's Third-Quarter Profit Beats Estimates on Buoyant Spending
Credit card giant American Express (AXP.N) on Friday reported third-quarter profit that beat expectations, helped by resilient spending from its wealthy customers who shrugged off concerns about an economic downturn.
AmEx, which caters to a premium customer base, has largely been able to mitigate the hit from inflation and the Federal Reserve's rate hikes, which have made borrowing costly and reined in discretionary spending.
Nio May Acquire Assets JAC Plans to Sell and Seek Its Own EV Production Qualification, Report Says
Anhui Jianghuai Automobile Group (JAC) plans to transfer the assets of its multi-billion RMB factories, with Nio saying the move by its vehicle production partner will not affect its operations.
Meantime, local media are reporting that Nio may buy the assets to qualify for independent electric vehicle (EV) production.
Bitcoin Climbs Back Above $30,000 Before Latest Grayscale Ruling
Bitcoin topped $30,000 for the second time this week on growing expectations that another favorable court action raises the likelihood than an exchange-traded fund holding the cryptocurrency will finally be approved.
A DC court is expected to issue a mandate Friday that could make effective an August opinion that went in favor of Grayscale Investments LLC, which had sued the US Securities and Exchange Commission as it looked to convert its Bitcoin trust (GBTC) into an ETF. It’s the next step in the process after the SEC last week opted against appealing the previous ruling, which it had lost.
$(FT_SY_YM)$ $(FT_SY_ES)$ $(FT_SY_NQ)$ $(LIPO)$Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
