- U.S. Stock Futures Gain
- Many markets globally remain closed for holidays on Monday
U.S. stock index futures gained on Monday, as investors returning from a long weekend cheered data showing strongest jobs growth in seven months that could mark the beginning of the best annual economic growth in nearly four decades.
At 8:05 a.m. ET, Dow E-minis were up 211 points, or 0.64%, S&P 500 E-minis were up 21.75 points, or 0.54% and Nasdaq 100 E-minis were up 36.25 points, or 0.27%.
Shares of U.S. banks, industrial and material firms including Bank of America, JPMorgan Chase & Co, Boeing Co and Dow Inc, which are poised to benefit from an improving economy, firmed about 1% each in premarket trading.
Heavyweight Tesla Inc rose 7.4% after the world’s most valuable carmaker posted record deliveries, as solid demand for its electric cars offset the impact of a global shortage of chips.
Investors will get a fresh glimpse of the U.S. economic health in the form of ISM’s survey of the services sector, which accounts for more than two-thirds of U.S. economic activity. The data is due at 10 a.m. ET (1400 GMT).
Stocks making the biggest moves in the premarket:
Tesla (TSLA) – Tesla delivered nearly 185,000 vehicles during the first quarter, a record for the company and more than 10,000 about consensus forecasts. The stock jumped 7.4% in the premarket.
GameStop (GME) – The video game retailer announced plans to sell up to 3.5 million shares in an “at-the-market” offering, with plans to use the proceeds to strengthen its balance sheet and accelerate its ongoing transformation. GameStop also said sales for the first nine weeks of its current quarter were up 11% from the same period a year ago. GameStop tumbled 13.8% in premarket trading.
Roblox (RBLX) – Shares of the video game development platform company’s stock jumped 5% in premarket action, as Goldman began coverage with a “buy” rating and Morgan Stanley initiated coverage with a rating of “overweight.” Both firms cite robust growth prospects, with Goldman noting that Roblox is able to outsource game development costs to creators.
Royal Caribbean (RCL),Norwegian Cruise Line (NCLH),Carnival (CCL) – The Centers for Disease Control and Prevention updated its guidance for resuming U.S. cruise ship sailings, although it did not set a specific date for resumption. Royal Caribbean gained 2% in the premarket, with Norwegian up 2.4% and Carnival higher by 1.8%.
Johnson & Johnson (JNJ) – J&J will take over manufacturing at a plant owned by contract manufacturer Emergent Biosolutions (EBS) after a quality control issue ruined a batch of J&J’s Covid-19 vaccine. The Wall Street Journal reports that in order to accommodate the switch, production of AstraZeneca’s(AZN) Covid-19 vaccine will be moved elsewhere. Separately, J&J expanded a trial of its Covid-19 vaccine to include 12- to 17-year-olds.
Tribune Co. (TPCO) – Tribune received a $680 million takeover bid – worth $16.50 per share – from Choice Hotels Chairman Stewart Bainum and Swiss billionaire Hansjorg Wyss. That tops a $635 million deal that the newspaper publisher had previously agreed to with hedge fund Alden Global Capital.
Pinterest (PINS) – The image-sharing website operator is in talks to buy photo app company VSCO, according to The New York Times. A potential deal price could not be determined, but VSCO was most recently valued at $550 million. Pinterest shares rose 2.4% in the premarket.
General Motors (GM),Ford Motor (F) – Wells Fargo began coverage of both automakers with ratings of “overweight,” pointing to Ford’s faster turnaround under new CEO Jim Farley and GM’s leading position in electric vehicles and connectivity. GM shares added 1.7% in premarket action, while Ford rose 1.5%.
Pioneer Natural (PXD) – Pioneer Natural struck a deal to buy privately held rival shale producer DoublePoint Energy for about $6.4 billion, continuing the consolidation trend in the shale industry. Pioneer shares fell 3.5% in premarket trading.
Moderna (MRNA) – Moderna received Food and Drug Administration approval to fill Covid-19 vaccine vials with up to 15 doses, up from the previous 10 doses. Moderna said it expects to begin shipping the 15-dose vials within a few weeks, and its stock rose 0.7% in premarket trading.
Morgan Stanley (MS) – Morgan Stanley said it would increase its dividend as soon as restrictions are lifted by the Federal Reserve. The Fed is scheduled to release the next round of bank stress test results in June. Morgan Stanley rose 1.3% in the premarket.
Planet Fitness (PLNT) – The fitness chain is planning to add up to 100 new locations in the coming fiscal year, adding to its current total of more than 2,100. CFO Tom Fitzgerald told The Wall Street Journal the company also wants to boost investment in its app.
Lamb Weston (LW) – Shares of the foodservice company gained 1.9% in the premarket after Bank of America Securities upgraded it to “buy” from “neutral” and raised the price target to $100 per share from $84 a share. BofA said the company is poised to approach pre-Covid business levels, with demand improving.