- U.S. Futures Mixed；Nasdaq contracts turn lower
- oil rebounded and long-dated Treasury yields advanced
Most U.S. stock-index futures rose, oil rebounded and long-dated Treasury yields advanced after President Joe Biden doubled the goal for his vaccination drive and the Federal Reserve freed banks from pandemic restrictions on dividends. The dollar slid for the first time in four days.
At 8:15 a.m. ET, Dow e-minis were up 150 points, or 0.46%, S&P 500 e-minis were up 10 points, or 0.26%, and Nasdaq 100 e-minis were down 33 points, or 0.26%.
Big banks JPMorgan Chase & Co, Bank of America, Wells Fargo, Citigroup, Goldman Sachs and Morgan Stanley were up more than 1% in premarket trading.
Oil firms Chevron, Exxon Mobil, Marathon Oil, Occidental Petroleum and Devon Energy rose between 0.7% and 2.6% as crude prices gained 2%.
An advance report on U.S. international trade in goods is scheduled for release at 8:30 a.m. ET. The US goods deficit is projected to increase to $86.1 billion in February from $84.6 billion in January. Data on wholesale inventories, personal income and outlays for February will be released at 8:30 a.m. ET, while the University of Michigan's consumer sentiment index for March is scheduled for release at 10:00 a.m. ET.
Stocks making the biggest moves in the premarket:
Nio (NIO) – Nio will suspend electric vehicle productionat its plant in Hefei, China, due to the worldwide shortage of semiconductors. The suspension will begin Monday and last for five days, prompting Nio to cut its first-quarter delivery forecast to 19,500 vehicles from the prior 20,000 to 20,500. Nio tumbled 7.4% in premarket action.
GameStop (GME) – GameStop stock surged another 6.7% premarket, after soaring 52.7% on Thursday.
JPMorgan Chase(JPM),Bank of America(BAC),Citigroup(C),Wells Fargo(WFC) – These and other bank stocks are on watch after the Federal Reserve announced plans tolift restrictions on bank dividends and stock buybacks. That will occur after the June stress tests, if the banks show they can maintain sufficient capital. JPMorgan gained 1.1% in premarket trading, with Bank of America up 1.5%, Wells Fargo up 1.3% and Citi up 1.3%.
Zoom Video (ZM) – Deutsche Bank began coverage of the video messaging platform company with a “hold” rating, based primarily on valuation after the stock soared in 2020. Deutsche Bank is bullish long-term based on Zoom’s growth drivers, scale, and what it calls “best in class” products.
Uber(UBER),Lyft(LYFT) – A Massachusetts judge has ruled that a challenge to the classification of drivers as independent contractors by Uber and Lyft can proceed. The ride-hailing companies had sought to have the case brought by the state’s attorney general dismissed. The judge did not rule on whether drivers should be classified as independent contractors, or employees entitled to benefits. Uber rose 1% in premarket trading.
Microsoft (MSFT) – Microsoft is now in advanced talks to buy messaging platform Discord for $10 billion or more, according to The Wall Street Journal. Bloomberg had reported earlier this week that the two sides had spoken but that no deal was imminent and that Discord was leaning toward an initial public offering.
BowX Acquisition (BOWX) – The special purpose acquisition companywill take office-sharing company WeWork publicin a deal worth $9 billion, including debt. Starwood Capital, Fidelity Management and others are involved in the deal as so-called “PIPE” investors. BowX rose 3.6% in the premarket.
Ford Motor (F) – The automaker will idle production of its popular F-150 pickup truck through the weekend at a Michigan plant, due to the global semiconductor shortage.
MSG Entertainment (MSGE) – The owner of the New York Knicks and Rangers, as well as Madison Square Garden and other venues, is buyingMSG Networks(MSGN) in a stock-swap deal. The transaction reunites the two entities after a split-up was announced in 2018 and became official last year. MSG Networks fell 4.9% in premarket action.
Annaly Capital Management (NLY) – Annaly struck an agreement to sell its commercial real estate business to investment firm Slate Asset Management for $2.33 billion. The real estate financing company expects the deal to be completed by the end of the third quarter. Annaly gained 1% in the premarket.
Altria (MO) – The tobacco producer’s stock gained 1.3% in premarket trading after Jefferies upgraded it to “buy” from “hold.” The firm said Altria’s opportunities in so-called RRPs (reduced risk products) are underappreciated.
Root Inc. (ROOT) – Root rose 3.9% in premarket trading after a 4.9% increase on Thursday. The auto insurer is “misunderstood”, according to Citron Research founder Andrew Left, who calls it a “disruptive tech company.” Root has seen its stock price cut in half since its initial public offering in October.
Progress Software (PRGS) – Progress Software reported quarterly earnings of 91 cents per share, 13 cents a share above estimates. Revenue beat forecasts as well. The enterprise application software company also raised its full-year outlook. Progress Software gained 2.6% in premarket trading.