Wall Street futures fell on Monday, dragged lower by high-growth stocks as Treasury yields surged to fresh highs ahead of Tuesday's inflation data that could back a more hawkish stance from the Federal Reserve.
Market Snapshot
At 8:05 a.m. ET, Dow e-minis were down 101 points, or 0.29%, S&P 500 e-minis were down 27 points, or 0.6%, and Nasdaq 100 e-minis were down 144.25 points, or 1.01%.
Nio – The China-based electric carmaker’s shares slumped 8.4% in premarket action after it suspended production due to supply chain disruptions.
Veru – The drugmaker’s shares surged 24.8% in the premarket after it reported “overwhelming” evidence of efficacy for its experimental drug for treating hospitalized Covid-19 patients. It will meet with the Food and Drug Administration to seek emergency use authorization for the treatment.
Sailpoint Technologies – The cybersecurity company’s shares soared 29.5% in premarket trading after it agreed to be acquired by private-equity firm Thoma Bravo for $6.9 billion or $65.25 per share.
Twitter – Twitter fell 1.5% in the premarket following the announcement that Elon Musk will not be joining Twitter’s board. Musk revealed a 9.2% stake last week, followed by news that he would be joining the board. Neither side gave a reason for the reversal.
Shopify – The e-commerce platform company’s stock added 1.1% in the premarket after it proposed a 10-for-1 stock split, as well as the creation of a new “founder share” that would increase CEO Tobi Lutke’s voting power to 40% from the current 34%.
AT&T – AT&T added 1.9% in the premarket after completing the spin-off of its WarnerMedia unit to Discovery Communications late Friday, with the stock of the newly combined Warner Brothers Discovery (WBD) set to begin trading today under its new name and ticker symbol. Separately, Deutsche Bank named Warner Brothers Discovery a “top pick” given its robust entertainment content.
Nvidia – The graphics chipmaker’s stock slid 3% in premarket action, following the announcement that it would seek shareholder approval to double the number of authorized shares. That would give Nvidia the flexibility to take actions like stock splits and issuing equity incentives without a further shareholder vote.
Lowe’s – Lowe’s fell 1% in the premarket after announcing the departure of David Denton as chief financial officer. Denton is leaving the home improvement retailer to take the same job at drugmaker Pfizer (PFE). He’ll be replaced by Senior Vice President Brandon Sink effective April 30.
JetBlue – The airline is cutting back its summer schedule in an effort to avoid flight disruptions, while working to ramp up hiring. JetBlue added 1% in premarket trading.
Market News
Elon Musk Keeps Twitter Stake, but Will No Longer Join the Board
Elon Musk will no longer be joining Twitter's board of directors, according to CEO Parag Agrawal, who tweeted the update early Monday.
Musk has been throwing out many ideas for the platform since taking a 9.2% stake in Twitter last Monday.
NIO Suspended Production on Supply Chain Issues
Shanghai-headquartered Nio said it is halting car production, CnEVPost reported, citing a statement posted by the company on its mobile app. The company blamed the predicament on issues with several of its suppliers, which had to shutter plants is several places, including Jilin, Shanghai and Jiangsu.
"There will be a delay in the delivery of vehicles for many customers in the near future, and we ask for your understanding," it said in a statement on the NIO app.
Shopify Announces 10-For-1 Stock Split
The Canada-based e-commerce software company said it was planning for a 10-for-1 split of its common stock, in an effort to make its shares "more accessible to all investors." That would be the first stock split since the company went public in May 2015.
Apple Is Scheduled to Host Its Annual Worldwide Developers Conference on June 6
The tech giant is scheduled to host its annual Worldwide Developers Conference, a one-week event kickstarting on June 6. WWDC is the software-focused event of Cupertino.
The company will hold the conference virtually for the third straight year, although it will allow some students, developers and media to attend in person a pre-recorded keynote at its Apple campus in Cupertino, California.
Sailpoint To Be Acquired By Thoma Bravo For $6.9 Billion
Thoma Bravo looks to pay $65.25 a share for SailPoint, marking a 31.5% premium to the cyber security company's April 8 closing price.
Businesses employ SailPoint to give employees secure access to remote working software and protect cloud computing infrastructure from hackers.