U.S. stock futures were trending higher on Tuesday as the Chinese tech industry bounced back following a recent sell-off on regulatory pressure. Positive U.S. vaccination news and the easing of worries over the tapering of stimulus also helped lift the mood in the equity markets.
Dow futures were up 0.07%, S&P futures were up 0.14%, and Nasdaq futures were up 0.28% at the time of writing.
Investors are eagerly awaiting a speech from Federal Reserve Chairman Jerome Powell later in the week.
Daktronics Inc. (DAKT), Citi Trends Inc. (CTRN), and Medtronic PLC (MDT) are set to report their quarterly earnings before the market opens. 21Vianet Group Inc. (VNET), Toll Brothers Inc. (TOL), and Electromed Inc. (ELMD) will report after the market close.
Baudax Bio (BXRX) was the most active stock in the pre-market session, with 4.28 million shares changing hands at the time of writing. It is unclear what is triggering the increased market activity, considering there has been no fundamental news or new developments.
Cara Therapeutics (CARA) was one of the biggest gainers in the pre-market session, jumping 24.65% at the time of writing. The spike comes on the heels of the Food and Drug Administration approving the company’s drug for the treatment of severe itching in Kidney disease patients.
Theravance Biopharma (TBPH) was the biggest loser in the pre-market session, falling 29.43% at the time of writing. The sell-off follows a confirmation that a dose-finding trial of one of the company’s drugs, izencitinib, did not measure up to the placebo as a potential treatment for ulcerative colitis.
In M&A news, Pfizer (PFE) has reached an agreement to acquire Trillium for $2.26 billion. The company is to pay $18.50 a share to acquire all Trillium’s outstanding shares, translating to a 118% premium to the 60-day weighted average price. The acquisition is expected to strengthen the company’s oncology unit by gaining access to biologics that enhance immune systems.
Meanwhile, KAR Auction Services, Inc. (KAR) has reached an agreement to acquire CARWAVE Holdings LLC for $450 million. The car auction services company is essentially acquiring an online dealer-to-dealer used car trading platform. Consequently, it should strengthen the company’s dealer-to-dealer segment for the wholesale vehicle market.
Intel Corporation (INTC) has secured a contract from the U.S Department of Defense to provide commercial foundry services as part of the first phase of DOD’s multi-phase Rapid Assured Microelectronics prototypes. As part of the deal, the company is to design and manufacture assured integrated circuits.
Palo Alto Networks, Inc. (PANW) shares jumped 10.4% in the extended session on Monday after the global cybersecurity provider delivered robust fiscal fourth-quarter results. Adjusted earnings were up 8% year-over-year to $1.60 a share, surpassing consensus estimates of $1.44 a share. Revenues were up 28% year-over-year to $1.22 billion, surpassing consensus estimates of $1.17 billion.
Shares of Madison Square Garden Entertainment Corp. (MSGE) jumped 16% after the company reported better-than-expected fiscal fourth-quarter results. Revenues were up 1000% to $99.8 million, largely attributed to a return of live events. However, the company reported an adjusted operating loss of $70 million, an improvement from an adjusted loss of $103.5 million delivered the same quarter last year.
