U.S. stock futures were trading higher on Monday as the slide in bond yields eased investors’ concerns that equity valuations would be negatively impacted by higher interest rates.
Dow and S&P futures were trading around 1% higher than Friday’s close while tech-heavy Nasdaq futures were up 1.2% at the time of writing.
Electrocore (ECOR) was most actively traded in the pre-market session, rising 46%, with over 7 million shares having already changed hands before the bell.
The top gainer in pre-market trading was Guardion Health Sciences (GHSI). GHSI closed 27% lower on Friday after announcing a 1-for-6 reverse stock split.
Biggest losers in pre-market were Athenex Inc (-22%), Ferro Corp (-18%) and Extant Medical (-15%).
In corporate earnings news, Builders FirstSource (BLDR) reported better-than-expected fourth quarter earnings driven by higher commodity prices and benefits from acquisitions. Adjusted EPS jumped 223% year-on-year to $1.26, beating analysts’ expectations of $0.90, while revenues saw a 43.5% comparable increase to $2.53 billion versus analysts’ estimates of $2.48 billion. The results however, did not include BMC Stock Holding as the acquisition was only completed on Jan. 1, 2021.
Shares of DraftKings’ (DKNG) were trading 3% higher in pre-market after reporting Q4 results that came in better than analysts’ estimates. Revenues shot up by 146% year-on-year to $322 million beating consensus estimates of $232.6 million. Adjusted loss per share came in better than analysts’ estimates of $0.43 at $0.24. CEO Jason Robins said, “In the fourth quarter of 2020, we saw MUPs [monthly unique payers] increase 44% to 1.5 million and ARPMUP [average revenue per monthly unique payer] increase 55% to $65.” The company raised its FY21 revenue guidance to between $900 million and $1 billion, indicating year-on-year growth of between 40% to 55%.
Magellan Health (MGLN) reported a wider-than-expected Q4 loss, while revenues beat analysts’ estimates. The healthcare management services provider posted an adjusted loss of $0.38 per share, versus net earnings of $0.66 per share in the year-ago period. Analysts had expected a loss of $0.25 per share. Revenue increased 4.5% year-over-year to $1.185 billion, topping consensus estimates by $50 million. Magellan Health agreed to buy Centene Corp. for $2.2 billion with the deal expected to close in the second half of 2021.
Berkshire Hathaway (BRK.B) class B shares were trading around 2% higher before the bell despite posting a 9% year-on-year decline in 2020 operating income of $21.92 billion. Fourth quarter operating income increased 14% to $5.02 billion. Buffet admitted that the $11 billion write-down last year was due to his misguided acquisition of Precision Castparts Corp. Furthermore, the investment conglomerate repurchased $24.7 billion of its own stock in 2020. Buffet’s “Big Four” investments currently include Berkshire’s property and casualty insurance operation, its 100% ownership of BNSF, its 5.4% stake in Apple (AAPL), and Berkshire Hathaway Energy.
Meanwhile, Regeneron (REGN) released positive Phase 2 trial results, which showed that a single dose of its investigational antibody cocktail therapy prevented early asthma reactions in cat-allergic patients. The 12-week trial enrolled 56 cat-allergic patients with mild asthma who were not living with a cat. After a single dose of treatment, patients could tolerate an increased amount of cat allergen after one week, for up to three months.