Wednesday’s Pre-Market: Here’s What You Need To Know Before The Market Opens

U.S. stock futures were flat in pre-market trading on Wednesday after having managed to post small gains yesterday as investors remain cautious over the possible impeachment of President Donald Trump.

Dow and S&P futures were trading around 0.15% lower while Nasdaq futures were bouncing between positive and negative territory at the time of writing.

In M&A news, Visa (V) and Plaid announced the termination of their $5.3 billion merger agreement after the US Department of Justice (DoJ) blocked the deal that it deemed anti-competitive. The DoJ filed a civil antitrust lawsuit on Nov. 5, 2020, claiming that Visa holds a monopoly on the market and is able to charge consumers billions of dollars in fees to process online payments.

Makan Delrahim of the DoJ’s antitrust division said, “Now that Visa has abandoned its anticompetitive merger, Plaid and other future fintech innovators are free to develop potential alternatives to Visa’s online debit services. With more competition, consumers can expect lower prices and better services.”

In corporate news, Albertsons (ACI) closed 2.1% higher on Tuesday after reporting better-than-expected third quarter results. Strong digital sales and pandemic-led stockpiling of groceries were the main drivers behind the growth, pushing year-on-year revenues and sales up 9.2% and 15.5%, respectively. Adjusted earnings came in at $0.66 per share, compared to analysts’ expectations of $0.42.

Shutterstock (SSTK) increased its quarterly dividend by 24% to $0.21, with its annual dividend of $0.84 per share reflecting a dividend yield of 1.2%. Shutterstock reported better-than-expected third quarter adjusted earnings in October of $0.80, which far exceeded analysts’ estimates of $0.29 per share.

Zoom (ZM) will be raising $1.75 billion in a public share offering of around 5.1 million common shares priced at $340. The company announced yesterday that it had reached the one million Zoom Phone subscribers mark just two years after going public. Zoom’s client base has grown impressively as remote communication methods have become increasingly necessary while companies and people navigate their way around the coronavirus pandemic.

Shares of FuboTV (FUBO) gained around 34% on Tuesday and were trading almost 5% higher in pre-market trading on Wednesday after announcing that it is acquiring sports betting startup Vigtory for an undisclosed amount. Fubo intends to integrate Vigtory’s sportsbook into its live television streaming platform and will combine recently acquired Balto Sports with Vigtory to launch a free to play sports gaming experience this summer.

In automotive news, General Motors (GM) followed up on Tuesday’s 6% gain and were trading 4% higher pre-market after unveiling a new business unit named BrightDrop to ease the delivery of goods and services. The company said that BrightDrop solutions will provide businesses with an improved, sustainable and more cost-effective way of transporting goods.