U.S. stock futures were near breakeven in pre-market trading Tuesday as investors braced for a deluge of earnings reports due out this week. Meanwhile, Treasury yields continued their climb, with the 10-year U.S. benchmark reaching 2.86%, the highest since December 2018.
Market Snapshot
At 7:50 a.m. ET, Dow e-minis were up 11 points, or 0.03%, S&P 500 e-minis were down 3.25 points, or 0.07%, and Nasdaq 100 e-minis were down 10.25 points, or 0.07%.
Pre-Market Movers
Netgear – Netgear tumbled 10.6% in premarket trading after the networking equipment maker reported weaker-than-expected preliminary results for the quarter that ended April 3. Netgear also cut its current-quarter revenue forecast, pointing to a weaker U.S. market for WiFi equipment.
Zendesk – Zendesk jumped 6.1% in premarket trading following a Bloomberg report that the customer service software developer is exploring a possible sale. Zendesk is said to have hired adviser Qatalyst Partners to assist in the process.
WeWork – WeWork rallied 5.4% in the premarket after the office-sharing company’s stock was rated “overweight” in new coverage at Piper Sandler. The firm points to confidence in WeWork’s path to profitability and how well the flexible office model fits a post-Covid world.
ACADIA Pharmaceuticals – Acadia Pharmaceuticals slid 7.7% in premarket action after the drugmaker said its experimental drug to treat post-operative pain did not meet its primary goal in a Phase 2 study.
Johnson & Johnson – Johnson & Johnson beat estimates by 11 cents a share, with quarterly earnings of $2.67 per share. Revenue came in slightly below forecasts. J&J also suspended sales guidance for its Covid-19 vaccine due to a global supply surplus, and announced a 6.6% dividend hike. Shares initially fell more than 3% in the premarket but subsequently erased those losses.
Travelers – Travelers’ shares were volatile in premarket trading, moving between gains and losses after the insurance company beat estimates on the top and bottom lines for its latest quarter. Travelers earned $4.22 per share compared to the $3.57 a share consensus forecast, helped by lower catastrophe losses. Travelers also announced a 5.7% dividend increase.
Plug Power – The hydrogen fuel cell company’s stock jumped 6.6% in premarket action after it announced an agreement to supply liquid green hydrogen to Walmart(WMT).
Halliburton– Halliburton fell 2.7% in premarket trading despite beating estimates for its latest quarter. Halliburton earned 35 cents per share, a penny a share above estimates as demand for oilfield services equipment remained high. Halliburton shares had closed at a 3 1/2 year high Monday.
American Campus Communities – The student housing real estate investment trust agreed to be bought byBlackstone(BX) in a deal worth $12.8 billion, including debt. American Campus Communities leaped 12.9% in the premarket.
Twitter –Apollo Global Management(APO) may be willing to provide financing for a Twitter buyout, according to sources who spoke to CNBC. The private-equity firm isn’t interested in joining other firms in a buyout bid, however.
JB Hunt Transport – JB Hunt reported quarterly profit of $2.29 per share, beating the $1.94 a share consensus estimate. Revenue also topped Street forecasts. The transportation company said it faced labor challenges due to Covid-19, but added that it overcame that obstacle and that business improved as the quarter progressed. JB Hunt added 1.5% in premarket trading.
Market News
U.S. equity funds had outflows of $15.5 billion in the week through April 13, while European funds experienced a ninth straight week of outflows, Bank of America Corp. strategists wrote, citing EPFR Global data.
A principal U.S. federal agency responsible for enforcing antidiscrimination laws has investigated Tesla Motors, according to a legal filing. The Equal Employment Opportunity Commission’s probe has come to light in a legal dispute over alleged racial discrimination and harassment at the electric-vehicle maker’s California auto assembly plant.
Delta Air Lineshas held talks with SpaceX’s broadband unit, called Starlink, and conducted exploratory tests of Starlink’s technology, Delta Chief ExecutiveEd Bastiansaid in a recent interview. He declined to discuss specifics.
A judge has ruled Amazon.com must reinstate a former warehouse employee who was fired in the early days of the pandemic, saying the company “unlawfully” terminated the worker who led a protest calling for Amazon to do more to protect employees against COVID-19.
Stellantis NV said on Tuesday it was suspending production at its Russian plant due to logistical difficulties and sanctions imposed on Moscow. It produced and sold the Peugeot, Citroёn, Opel, Jeep, and Fiat brands in Russia, has just 1% of the country's car market.
Blackstone agreed to buy student-housing owner American Campus Communities in a deal valuing the company at about $12.8 billion, including debt, a bet that rents will continue to rise as more college students return to campus.