Wall Street futures surged on Tuesday on signs of a de-escalation in tensions between the Russia and Ukraine, with investors also awaiting key inflation data for clues on the path of interest rate hikes by the Federal Reserve.
Russia said some of its military units were returning to their bases after exercises near Ukraine, following days of U.S. and British warnings that Moscow might invade its neighbor at any time.
However, it was not immediately clear if it was a temporary signal of any kind of significant pullback.
Market Snapshot
At 8 a.m. ET, Dow e-minis were up 395 points, or 1.15%, S&P 500 e-minis were up 65 points, or 1.48%, and Nasdaq 100 e-minis were up 292.25 points, or 2.05%.
Pre-Market Movers
Monster Beverage (MNST),Constellation Brands(STZ) – Merger talks between Monster Beverage and Constellation Brands are progressing, according to people familiar with the matter who spoke to Bloomberg. Those people say an agreement between the two companies could be reached within weeks if the talks go smoothly. Constellation gained 2.2% in the premarket while Monster Beverage rallied 3.1%.
Arista Networks (ANET) – Arista Networks reported quarterly earnings of 82 cents per share, 9 cents a share above estimates. The networking software and services company’s revenue topped Wall Street forecasts as well. Arista also issued an upbeat forecast, helping its shares surge 10.1% in the premarket.
Restaurant (QSR) – The restaurant operatorbeat estimates by 4 cents a share, with quarterly earnings of 74 cents per share. Revenue came in above estimates as well. Burger King’s comparable-store sales beat analysts’ forecasts, helping to offset misses at the Tim Hortons and Popeyes chains.
BorgWarner (BWA) – The automotive components maker reported quarterly profit of $1.06 per share, well above the 75 cents a share consensus estimate. Revenue also came in above forecasts. BorgWarner’s full-year earnings forecast is shy of analysts’ estimates, however, despite an expected improvement in organic sales. BorgWarner rose 1% in premarket trading.
Marriott (MAR) – Marriott shares jumped 3% in the premarket after the hotel operator beat top- and bottom-line forecasts for its latest quarter. Marriott earned $1.30 per share, 31 cents a share above estimates as occupancy rates increased amid a rise in vaccinations.
Zoetis (ZTS) – Zoetis was up 2% in premarket trading on better-than-expected quarterly results. Zoetis beat estimates by 4 cents a share, with quarterly earnings of $1.00 per share as improvement in its pet products business offset tepid results for livestock product sales.
Tower Semiconductor (TSEM) –Intel(INTC) announced a deal to buy the Israeli chipmaker for $53 per share, or $5.4 billion, a 60% premium over Tower’s Monday closing price. Tower makes chips for a wide variety of industries including medical, automotive and consumer products. Tower Semiconductor soared 55% in premarket action, while Intel added 1.6%.
Advance Auto Parts (AAP) – Advance Auto Parts beat estimates by 10 cents a share, with quarterly profit of $2.07 per share. The auto parts retailer’s revenue also beat analysts’ forecasts. Advance Auto’s sales were higher than a year before, but profit was lower as it dealt with inflationary headwinds. Shares fell 1% in premarket action.
Avis Budget (CAR) – The company reported better-than-expected profit and revenue for its latest quarter, as increases in rental activity and in revenue per day helped offset higher expenses.
Intuit (INTU) – Intuit lowered its current-quarter forecast as tax season gets off to a slow start. The maker of the popular TurboTax software maintained its full-year forecast, however, suggesting the company believes revenue was simply be pushed to a later quarter. Intuit fell 1% in premarket trading.
Market News
Virgin Galactic, an aerospace and space travel company, announced today that ticket sales will open to the general public starting on February 16, providing the opportunity to purchase one of the initial spaceflight reservations and secure membership in the unique community of Future Astronauts.
Genesis Unicorn Capital has priced its downsized initial public offering of $75M, consisting of 7.5M units at $10.00 per unit. The company had previously filed to offer 10M units at the same price. The units are expected to be listed on the Nasdaq today.
TSMC approved the distribution of a NT$2.75 per share cash dividend for the fourth quarter of 2021, and set June 22, 2022 as the record date for common stock shareholders entitled to participate in this cash dividend distribution, and the ex-dividend date for the common shares shall be June 16, 2022.
Joby and ANA Holdings Inc. will work together to bring aerial ridesharing to Japan for the first time, according to a statement on Monday. Toyota Motor Corp. will join the partnership and focus on ground-based transport.
U.S. listed Chinese electric vehicle maker Nio Inc will launch a five-seater electric sport utility vehicle in April this year, CnEVpost reported on Tuesday, citing the company’s co-founder Qin Lihong.