U.S. stock futures were trending higher on Tuesday as concerns about the economic impact of the Omicron Covid variant eased. The U.S. reporting that Omicron cases had shown only mild symptoms is the catalyst behind renewed investors’ interest in equities.
Dow futures (DJIA) were up 0.95%, S&P futures (SPX) up 1.25% and Nasdaq futures (NDX) up 1.75% at the time of writing.
Upcoming Earnings
The Alico, Inc. earnings date is today. According to the TipRanks IPO Calendar, Arbe Robotics (ARBE) and John Wiley Sons Cl A (JW.A) are also scheduled to report their quarterly results before the market opens. Oil-Dri Corporation Of America (ODC), Renesola Ltd (SOL) and TechPrecision Corporation (TPCS) will report after the market closes.
Pre-market Movers
Bluejay Diagnostics (BJDX) was the most active stock in the pre-market session, with 1.72M shares changing hands at the time of writing. It is still unclear what is causing the increased market activity, as no fundamental news has been released to justify the same.
ACADIA Pharmaceuticals (ACAD) was one of the most active stocks in the pre-market session, jumping 19.18% at the time of writing. The spike comes on the company announcing positive top-line results from the pivotal Phase 3 Lavender trial of Trofinetide as a treatment for Rett Syndrome.
Insignia Systems (ISIG) was the biggest loser in the pre-market, going down 10.30% at the time of writing. The sell-off comes just a day after the company announced it is exploring new strategic alternatives to optimize shareholder value.
Market News
Shares of Sysco Corporation (SYY) jumped 4.3% after the foodservice distribution company revealed it has reached an agreement to acquire The Coastal Companies from Continental Grain Company. The financial terms of the deal remain under wraps. With the acquisition, the company gains access to a valuable fresh produce distributor and value-added processor with a strong foothold in the Mid-Atlantic region.
Meanwhile, Jack in the Box, Inc. (JACK) has reached an agreement to acquire Del Taco Restaurants, Inc. (TACO) for nearly $575 million in cash, including debt. The transaction is expected to close in the first quarter of next year, resulting in a combined company with more than 2,800 restaurants spread across 25 U.S. states. The transaction is also expected to achieve $15 million in cost synergies.
Bright Health Group, Inc. (BHG) plans to raise $750 million in capital, which it plans to use to finance growth strategies. Cigna Ventures, a wholly-owned indirect subsidiary of Cigna Corporation, is expected to provide the capital and consequently become a new investor in the diversified healthcare financing and distribution platform.
Alibaba Group Holding Ltd. (BABA) plans to reorganize its domestic and international e-commerce business following a massive regulatory crackdown. Reuters reports that the company plans to break its e-commerce business into two: China digital commerce and international digital commerce. The reorganization is part of the company’s push to focus on globalization.
Uber (UBER) is exploring the possibility of taking in outside investors for its Middle East car unit, Careem. Citing sources familiar with the matter, Reuters reports that the ride-hailing company has opened talks with the unit’s management as it looks to raise sufficient capital to accelerate Careem’s growth trajectory. The amount of money the company intends to raise is still unclear.
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