Pre-Bell | Equity Futures Lose Steam; Sea Stock Soars 14% As Adjusted Profit, Sales Top Estimates

Tiger Newspress03-04

U.S. stock index futures were muted on Monday after the S&P 500 and the Nasdaq's record-closing highs in the prior session, as investors paused at the start of a week packed with key jobs data and Fed Chair Jerome Powell's congressional testimony.

Market Snapshot

At 7:50 a.m. ET, Dow e-minis were down 101 points, or 0.26%, S&P 500 e-minis were down 6.5 points, or 0.13%, and Nasdaq 100 e-minis were up 4.5 points, or 0.02%.

Pre-Market Movers

Sea Limited shares jumped over 14% in pre-market trading. Southeast Asia’s largest internet firm posted $126.7 million in adjusted earnings before interest, taxes, depreciation and amortization for the fourth quarter through December. While that’s a decline of 74% from a year earlier — a result of marketing spending — it’s still higher than the $88 million analysts predicted. Sales also topped estimates.

Super Micro Computer, a maker of servers that help with artificial-intelligence applications, and Deckers Outdoor, the maker of Hoka sneakers and Ugg boots, will join the S&P 500 before the opening of trading on March 18. Shares of Super Micro, which have risen 219% this year, were up 11% in premarket trading, while Deckers jumped 5.2%. The two companies will replace Whirlpool and Zions Bancorp in the index. Both Whirlpool and Zions declined 2%.

Shares of Nvidia rose 1.1% in premarket trading after the chip giant closed Friday with a market cap above $2 trillion for the first time. The stock rose from $1 trillion to $2 trillion in 180 trading days, according to Dow Jones Market Data, faster than Apple and Microsoft, the only other companies to end a trading day with a market cap higher than $2 trillion.

Taiwan Semiconductor Manufacturing rose to a record high in Taipei, according to Bloomberg, jumping 5.2% to NT$725. It has risen 22% this year. U.S.-listed shares of Taiwan Semiconductor, the world’s largest third-party chip manufacturer, were rising 4% in premarket trading.

Macy’s was rising 16% to $20.98 after Arkhouse Management and Brigade Capital said they raised their offer to buy the retailer by almost $1 billion. The private-equity firms raised their bid to $24 a share, or $6.6 billion. Macy’s in late January rejected an offer from Arkhouse and Brigade Capital of $21 a share, or $5.8 billion. Macy’s said it has received the new offer and its board would review the proposal.

American depositary receipts of Li Auto declined 7.5%. The Chinese electric-vehicle maker on Friday unveiled the Mega, the company’s first high-voltage battery-electric vehicle. The car was priced at 559,800 yuan (US$77,785), slightly higher than analysts expected. Li Auto on Friday reported deliveries in February of 20,251 vehicles, up 22% year over year.

Spirit AeroSystems  was up 2.2% after Boeing confirmed Friday it was in discussions to acquire the jet-fuselage supplier. Spirit AeroSystems was once a part of Boeing but was created when Boeing sold some of its factories in 2005. “We believe that the reintegration of Boeing and Spirit AeroSystems’ manufacturing operations would further strengthen aviation safety, improve quality and serve the interests of our customers, employees, and shareholders,” Boeing said in a statement.

DoorDash rose 4.1% to $132.63 after shares of the food-delivery company were upgraded to Outperform from Sector Perform at RBC Capital and the price target was increased to $175 from $130.

Lyft also was upgraded to Outperform from Sector Perform at RBC Capital. The stock rose 5.4% to $17.24. RBC Capital raised its price target on shares of the ride-hailing company to $23 from $17.

Market News

Apple Hit With Over 1.8 Bln Euro EU Antitrust Fine in Spotify Case

Apple was hit with an EU antitrust fine of over 1.8 billion euros ($1.95 billion) on Monday, its first ever, for preventing Spotify and other music streaming services from informing users of payment options outside its App Store.

The European Commission's decision was triggered by a 2019 complaint by Swedish music streaming service Spotify over this restriction and Apple's 30% App Store fees.

The European Union competition enforcer said Apple's restrictions constituted unfair trading conditions, a relatively novel argument in an antitrust case and also used by the Dutch antitrust agency in a decision against Apple in 2021 in a case brought by dating app providers.

Tesla Sells 60,365 China-Made Cars in Feb, Down 15.5% From Jan

Tesla saw a further decline in China-made vehicles sold last month, possibly due to the impact of the Chinese New Year holiday on output at its Shanghai plant.

The US electric vehicle (EV) maker sold 60,365 China-made vehicles in February, according to data released today by the China Passenger Car Association (CPCA).

The monthly sales, which include exports from China to overseas markets, were down 18.87 percent from 74,402 a year ago and down 15.51 percent from 71,447 in January.

Nvidia Leaps Aramco to Be World's Third Most-Valuable Company

Nvidia Corp. has claimed another milestone by overtaking Saudi Aramco in market value, making the chipmaker the world’s third-most valuable public company after Apple Inc. and Microsoft Corp.

The company ended Friday’s session at $2.06 trillion, closing above the $2 trillion mark for the first time. Meanwhile, Aramco’s value dipped to $2.03 trillion, according to data compiled by Bloomberg.

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