US stock futures edged higher on Wednesday as investors’ concerns about inflation and a hike in interest rates were allayed, despite US Treasury Secretary, Janet Yellen, saying in an interview that there could be a modest hike in interest rates to prevent the US economy from overheating.
Dow futures were up 0.2%, S&P futures rose 0.3%, and Nasdaq futures had increased 0.6% at the time of writing.
Athenex (ATNX) was the most actively traded stock and the biggest gainer in pre-market trading with the stock soaring 34.8%. The biopharma company that is dedicated to the development of cancer treatment therapies announced the acquisition of Kuur Therapeutics, developer of off-the-shelf cell immunotherapies, for a total consideration of $185 million.
Esperion Therapeutics (ESPR) was the biggest laggard as the stock fell 31.5% at the time of writing. The biopharma company reported a loss of $3.50 per share in 1Q that was wider than analysts’ estimates of a loss of $2.08 per share. ESPR posted revenues of $8 million that missed consensus estimates of $20.4 million.
While companies including Dun & Bradstreet (DNB), Fortis (FTS), General Motors (GM), Hilton Worldwide (HLT), Kala Pharmaceuticals (KALA), Sempra Energy (SRE) are expected to report before the opening bell, Allstate (ALL), Atmos Energy (ATO), Etsy (ETSY), Fastly (FSLY), HubSpot (HUBS), MetLife (MET), NuVasive (NUVA) and Zynga (ZNGA) are expected to report after the market close.
In M&A news, Twitter (TWTR) has acquired Scroll, the subscription service that allows people to read articles without contending with ads, pop-ups, and other clutter. The microblogging platform hopes to make it easier for publishers, journalists, and writers to connect with readers. Twitter did not disclose the terms of the acquisition.
Neo Genomics Inc. (NEO), a cancer-focused genetic testing and contract research company will acquire Inivata Limited, a commercial-stage liquid biopsy platform provider. NEO acquired a minority stake in Inivata last year for $25 million. At the time, NEO received an option to buy the rest of the stake in Inivata for $390 million before the end of this year.
Inivata CEO Clive Morris said, “By leveraging our combined resources, we expect to accelerate the development of our promising RaDaR minimal residual disease (MRD) assay and accelerate commercialization efforts with biopharma before driving a successful launch into the clinical setting.”
Meanwhile, Ericsson (ERIC), the communication infrastructure company has inked a strategic partnership with Telarus as it looks to target the $90 billion small and medium business (SMB) market in the U.S. The partnership will allow ERIC to market Ericsson Wireless Office through Telarus, a U.S.-based sales agency, to a wider pool of businesses.
Ericsson’s Cradlepoint division will also partner with AT&T (T) to deliver an array of 5G enterprise solutions in the U.S. They will offer the first nationwide 5G broadband network for businesses.
In earnings news, healthcare company CVS Health (CVS) delivered a blowout first quarter driven by growth in all segments. The company’s adjusted earnings increased 6.8% year-on-year to $2.04 per share in 1Q and beat Street estimates of $1.71 per share. Revenues inched up 3.5% to $69.1 billion and surpassed the consensus estimate of $68.29 billion.
Meanwhile, pharma giant Pfizer (PFE) reported better-than-expected 1Q results driven by strong business performance and contributions from BNT162b2, the company’s COVID-19 vaccine. The company also updated its revenue and earnings guidance for 2021 following higher revenue expectations from its COVID-19 vaccine.
PFE reported adjusted earnings of $0.93 per share, a rise of 47% year-on-year that outpaced Street estimates of $0.78 per share. Revenues surged 45% to $14.6 billion and surpassed the consensus estimate of $13.6 billion.
