U.S. stock futures were trading slightly higher on Tuesday after some profit taking on Monday, which saw all three major indices finish the trading session in the red.
Dow and S&P 500 futures were up around 0.15%, while the Nasdaq was around 0.3% higher at the time of writing.
In COVID-related news, shares of Quanterix (QTRX) gained almost 10% on Monday after the Food and Drug Administration (FDA) authorized emergency use of its SARS-CoV-2 N protein antigen test. The test showed sensitivity of 97.7% and specificity of 100% up to 14 days after symptoms first started to show. Preliminary clinical research studies showed that the viral antigen may be readily detectable in asymptomatic and pre-symptomatic patients.
In corporate news, Abercrombie & Fitch (ANF) ended the day 7% stronger on Monday after the company updated its sales and margin outlook, saying it now expects fourth quarter sales to decline by 5% – 7%, compared to its earlier expectations of a 5% – 10% decline. Gross profit margin is expected to increase by at least 130 basis points versus the same period last year and operating expenses are forecasted to fall by at least 2% due to fewer store openings and rent reductions.
Lululemon (LULU) also revised its earnings outlook upward and announced that it expects fourth quarter sales and earnings to be at the high end of its previous guidance range, citing strong demand during the holiday season. Strength in both online and physical stores were the main catalysts for the upgrade in forecasts and the company remains positive about its prospects in 2021.
Acacia (ACIA) provided preliminary fourth quarter and full-year earnings results that beat initial estimates, sending its shares up 3% on Monday. Adjusted earnings for the fourth quarter are expected to be between $0.88 and $0.97 per share, beating analysts’ estimates of $0.76 per share. Full-year earnings are forecasted to be in the range of $2.86 – $2.95 per share, compared to the previous $2.73 estimate.
Crocs (CROX) will report fourth quarter results in February but offered an improved fourth quarter revenue forecast yesterday, with the share price popping 12% in response. Revenue is now expected to be between $407 million and $410 million, compared to $330 million, which represents an increase of around 55% year-on-year. Sales are also expected to grow more than originally anticipated, with current estimates over 12%.
In automotive news, shares of Chinese electric vehicle company Nio (NIO) were up almost 2% in pre-market trading after announcing that it will sell $1.3 billion in convertible senior notes to strengthen its cash and balance sheet positions. Last month, Nio completed the sale of 68 million ADSs at $39 per ADS, each representing one Class A ordinary share of the company.
Meanwhile, Ford (F) will be shutting down its production operations in Brazil as it attempts to streamline its business. The auto manufacturer has been hit hard by the coronavirus pandemic and has made the decision to free up cash flow by simplifying and modernizing all aspects of the business. Ford hopes to focus on its strengths and partner with industry experts who will help the company increase profit margins.
