U.S. stock futures were pointing to a lower open on Tuesday as investors remain on edge given the ongoing regulatory crackdown in China. Investors are also cautious ahead of key earnings reports from Apple, Alphabet, and Microsoft, some of the stocks that have lagged the major indices this year.
Dow futures were 0.43% weaker, S&P futures had fallen 0.31%, and Nasdaq futures were down 0.10% at the time of writing.
Boston Scientific Corp. (BSX), General Electric Co. (GE), and United Parcel Service, Inc. (UPS) are set to report their quarterly earnings before the market opens. Microsoft Corp. (MSFT), Juniper Networks, Inc. (JNPR), and Alphabet, Inc. (GOOGL) will report after market close.
New Oriental Education & Technology (EDU) was the most actively traded stock in the pre-market session, with about 5.6 million shares having already changed hands at the time of writing. The stock has been in the spotlight amid Beijing’s clampdown on the private education industry.
Eyegate (EYEG) was the biggest gainer in pre-market trading, jumping about 106% at the time of writing. The rally comes on the heels of the company announcing that it has entered into a non-binding agreement to acquire privately-held Bayon Therapeutics for up to $7.1M
Trxade Group (MEDS) was the biggest loser in the pre-market, dropping 21.67% at the time of writing. The company delivered disappointing second-quarter results characterized by earnings and revenue misses. Revenues fell to $1.9 million from $6.6 million a year ago as the net loss widened to $2.6 million from $0.5 million last year.
In M&A news, it’s the end of the road for the proposed merger between Aon Plc. (AON) and Willis Towers Watson Plc. (WLTW). The $30 billion deal first announced in March 2020 has been called off. The U.S. Department of Justice had opposed the proposed business combination, insisting it would stifle competition leading to higher prices of products and services to customers.
Meanwhile, Archer-Daniels-Midland (ADM) has reached an agreement to acquire Sojaprotein. The two are yet to confirm the terms of the deal. The acquisition of the leading provider of non-GMO soy ingredients is expected to strengthen ADM’s position in the alternative meat space and enhance its market share in Europe.
Amazon (AMZN) has set its sights on several Indian film and media businesses. Citing people familiar with the matter, The Indian Express newspaper reports that theater chain Inox Leisure is one of the outlets that the tech giant is eyeing. The U.S. Company is reportedly considering three to four deals as it looks to bolster its entertainment business
Hasbro (HAS) shares popped 12.24% after the company reported solid second-quarter financial results. Revenues were up 54% year-over-year to $1.3 billion, topping consensus estimates of $1.2 billion. Net earnings totaled $145.4 million, or $1.05 a share, more than double the $0.48 expected.
Meanwhile, Lockheed Martin (LMT) shares fell 3.34% after delivering mixed second-quarter results. Net earnings came in at $1.8 billion, or $6.52 a share, against the $6.53 a share expected by analysts. On the other hand, revenues topped estimates, coming in at $17 billion versus $16.93 billion expected.
