Travel and leisure shares propped up U.S. stock index futures after China relaxed some COVID-19 quarantine requirements for international travelers, raising hopes of a revival in global growth.
Market Snapshot
At 8:05 a.m. ET, Dow e-minis were up 199 points, or 0.63%, S&P 500 e-minis were up 23 points, or 0.59%, and Nasdaq 100 e-minis were up 58.75 points, or 0.49%.
Pre-Market Movers
Nike(NKE) – Nike fell 2.4% in premarket trading despite reportingbetter-than-expected quarterly profit and revenue. The athletic apparel and footwear maker forecast current-quarter revenue below analysts’ estimates amid increased promotional activity and ongoing disruptions in its profitable Chia market.
Spirit Airlines(SAVE) – Spirit added 4% in the premarket as the battle to buy the airline intensifies.JetBlue(JBLU) responded toFrontier Group’s(ULCC) latest improved offer bysweetening its own bid, adding a monthly pre-payment of 10 cents per share between January 2023 and the deal’s close, as well as a $50 million breakup fee increase to $400 million and a $2.50 per share payment when the deal is approved. Frontier rose 2.7%, while JetBlue edged lower by 0.3%.
Morgan Stanley(MS),Goldman Sachs(GS),Bank of America(BAC),Wells Fargo(WFC) – These banksraised their dividendsafter passing their annual stress tests, butJPMorgan Chase(JPM) andCitigroup(C) kept their payouts flat. Morgan Stanley gained 3.3% in premarket action, Goldman rose 1.7%, Bank of America added 1.1% and Wells Fargo gained 0.7%.
Occidental Petroleum(OXY) – Occidental Petroleum gained 4% in premarket trading afterBerkshire Hathaway(BRK.B) revealed additional purchases of Occidental Petroleum shares, increasing its stake to 16.4%.
Jefferies Financial(JEF) – Jefferies slid 4.4% in the premarket after quarterly profit fell short of analysts’ forecasts, although the investment firm’s revenue did exceed estimates. Revenue was down 30% from a year ago amid what Jefferies calls a “challenging” capital markets environment.
Las Vegas Sands(LVS),Wynn Resorts(WYNN) – Shares of the casino operators moved higher in the premarket as China eased Covid-19 quarantine rules for international arrivals. Las Vegas Sands rallied 6.3%, while Wynn Resorts jumped 6.5%.
Playtika(PLTK) – The Israel-based mobile game developer saw its shares rise 3.2% in premarket trading following an Axios report that Joffre Capital was buying a majority stake.
Roivant Sciences(ROIV) – Shares of the biopharmaceutical company jumped 7.9% in the premarket after it unveiled a new biotech company called Priovant Therapeutics in partnership withPfizer(PFE). Pfizer will hold a 25% stake in Priovant, which will focus on novel therapies for autoimmune diseases.
Snowflake(SNOW) – Snowflake gained 3.4% in premarket action after Jefferies upgraded the cloud computing company’s stock to “buy” from “hold.” Jefferies likes Snowflake’s growth potential and noted its “rock solid” fundamentals and “near flawless” execution. Snowflake had gained more than 32% during a five-session win streak before retreating 2.2% yesterday.
Trip.com (NASDAQ:TCOM)rallied 16% in early premarket trade until noon as the company experienced solid growth of travel demand in the global markets, especially across Europe and the Asia Pacific amid countries easing travel restrictions.
Market News
China cuts COVID quarantine time for international travellers
China will halve to seven days its COVID-19 quarantine period for visitors from overseas, with a further three days spent at home, health authorities said on Tuesday.
The change came in the National Health Commission's latest guideline on measures against the disease.
Berkshire Holds 16.4% of Occidental Petroleum After Recent Purchase
Berkshire Hathaway continued to add to its stake in Occidental Petroleum, buying 794,000 shares this past Thursday, according to a filing late Monday.
Berkshire Hathaway (Ticker BRK/A, BRK/B) led by CEO Warren Buffett had purchased a total of 9.5 million shares on June 17 and June 22. Berkshire's stake in Occidental Petroleum (OXY) now totals 153.5 million shares and is worth $9 billion.
TSMC to initiate about 6% price hike in 2023
TSMC has determined that prices for most of its manufacturing processes will rise about 6% starting January 2023, despite concerns raised recently about a potentially disappointing second half of 2022 for a number of end markets, according to industry sources.
Elon Musk Has Twitter’s Data, but Getting Answers on Spam Accounts May Be Tougher
Elon Muskhas gained access to the Twitter data that he said was needed to complete his $44 billion acquisition, but data scientists and specialists doubt the stream will provide the conclusive answers he seeks about the number of phony accounts on the platform.
After somelegal back-and-forthbetween the two sides, Twitter in recent weeks provided Mr. Musk with historical tweet data and access to its so-called fire hose of tweets, people familiar with the matter said. That fire hose shows the full flood of all tweets—people post hundreds of millions of times a day on the platform, according to the company—in near real time.
Comments