U.S. stock index futures edged higher on Thursday as investors assessed the outlook for monetary policy amid growing concerns about an economic downturn caused by aggressive rate hikes to tackle inflation.
Market Snapshot
At 8:00 a.m. ET, Dow e-minis were up 130 points, or 0.42%, S&P 500 e-minis were up 13.75 points, or 0.36%, and Nasdaq 100 e-minis were up 57 points, or 0.48%.
Pre-Market Movers
GameStop – GameStop rallied 5.6% in the premarket after the videogame retailer declared a 4-for-1 stock split. Trading on a split-adjusted basis will begin on July 22.
Seagen – Seagen gained 4.5% in premarket trading after the Wall Street Journal reported that Merck (MRK) is in advanced talks to acquire the biotech company for more than $200 per share, or about $40 billion.
Virgin Galactic – The space tourism company’s stock rallied 3.7% in premarket action, after announcing a partnership with a Boeing (BA) subsidiary to build motherships that carry Virgin rocket ships aloft.
Meridian Bioscience – The maker of diagnostic test kits agreed to be acquired by a consortium consisting of Korean diagnostics company SD Biosensor and Korean private equity firm SJL Partners for $34 per share in cash, or about $1.5 billion.
Bed Bath & Beyond – Bed Bath & Beyond jumped 6% in the premarket following the disclosure of several insider purchases. Interim CEO Sue Gove bought 50,000 shares of the housewares retailer’s stock, while board members Harriet Edelman and Jeff Kirwan each bought 10,000 shares.
Boston Beer – Boston Beer was downgraded to “sector perform” from “outperform” at RBC Capital Markets, which expects the brewer of Sam Adams beer and Truly hard seltzer to cut its volume guidance once again.
Helen of Troy – The health care and beauty products company reported an adjusted quarterly profit of $2.41 per share, beating the $2.16 consensus estimate, with revenue also topping analyst forecasts. However, the company noted a slowdown in demand in some of its categories, as consumers shift spending patterns to deal with inflation, and cut its full-year outlook. The stock slid 6.7% in the premarket.
China EV Makers – Shares of China-based electric vehicle makers rose after government officials said they would consider extending a tax break for EV buyers. Li Auto rose 1% in the premarket, with Nio up by 1.5% and Xpeng jumping 3.3%.
Market News
Elon Musk Had Twins Last Year with One of His Top Executives
Tesla Inc Chief Executive Elon Musk and Shivon Zilis, a top executive at his brain-chip startup Neuralink, had twins in November of 2021, Business Insider reported on Wednesday.
In April, Musk and Zilis filed a petition to change the name of the twins to "have their father's last name" and contain their mother's last name as part of their middle name, the report said, citing court documents.
Meta Plans to Call New Virtual Reality Headset the "Quest Pro"
Meta Platforms Inc.’s upcoming high-end headset for virtual and augmented reality will be called the Meta Quest Pro, according to code findings inside the company’s iPhone app for setting up headsets.
Meta has been touting its new device since last year, using the codename Project Cambria. The company is likely to introduce the official name later this year along with details about the headset’s availability. It will cost more than $1,000, according to a person with knowledge of the matter who asked not to be identified because the details aren’t yet public.
Merck Is in Advanced Talks to Buy Seagen in a Deal Worth Over $40B
Merck is in advanced talks to acquire Seagen Inc. and is aiming to agree on a purchase of the cancer biotech in the next few weeks, according to people familiar with the matter, in a deal that could be worth roughly $40 billion or more.
The companies are discussing a price for Seagen above $200 a share and are seeking to seal a deal on or before the announcement of Merck’s quarterly earnings, set for July 28, the people said.
Samsung Electronics Expected Q2 Operating Profits to Rise 11.4%
Samsung Electronics Co.’s string of record results is expected to end, as the global tech boom slows amid rising inflation and economic uncertainties.
On Thursday, the South Korean tech giant—which had reported record revenues in the past three straight quarters—forecast a 11.4% rise in second-quarter operating profit from the prior year. Revenue for the April-June period is expected to increase year-over-year by 20.9%.