Wednesday’s Pre-Market: Here’s What You Need to Know Before the Market Opens

U.S. stock futures were trending higher on Wednesday, bouncing back after hawkish remarks from the Federal Reserve chairman Jerome Powell rattled investors. The FED chair has signaled accelerated bond-buying in a bid to curtail sustained and troublesome inflation.

Dow futures (DJIA) were up 0.82%, S&P futures (SPX) were up 1.12% and Nasdaq futures (NDX) were up 1.32% at the time of writing.

Upcoming Earnings

BuildABear Workshop, Inc. (BBW), Huize Holding (HUIZ), and National Bank of Canada (NTIOF) are set to report their quarterly results before the market opens. Semtech Corp. (SMTC), The Descartes Systems Group (DSGX) Veeva Systems (VEEV) will report after the market close.

Pre-market Movers

Ardelyx (ARDX) was the most active stock in the pre-market session, with 5.67M shares changing hands at the time of writing. The increased market activity comes on the company announcing plans to launch IBSRELA, its approved treatment for irritable bowel syndrome with constipation in adults, in the second quarter of next year.

Skylight Health Group (SLHG) was one of the biggest gainers in the pre-market session, jumping 57.58% at the time of writing. It is still unclear what is causing the stock to spike, as no fundamental news has been released to justify the pop.

Longeveron (LGVN) was the biggest loser in the pre-market session, falling 19.99% at the time of writing. The sell-off comes a day after the company announced its Phase 2 Clinical Trial in Japan to test the safety and efficacy of Lomecel-B on aging, frail patients.

Market News

In M&A news ViacomCBS, Inc. (VIAC) plans to sell CBS Studio Center and its associated operating business to a partnership of Hackman Capital Partners, LLC, and Square Mile Capital Management, LLC. The company is likely to fetch $1.85 billion from the deal, which is expected to close before the end of the year.

International Business Machines Corporation (IBM) has acquired Australian digital transformation services company SXiQ. The financial terms of the deal remain under wraps. The acquisition is expected to strengthen the company’s capabilities in New Zealand and Australia. SXiQ is a leading provider of cloud infrastructure and applications in the two countries

Uber Technologies (UBER) is ending its food delivery business in Hong Kong. The ride-hailing Services Company will cease to offer food delivery in the city starting December 31, 2021. The shutdown comes after five years of partnering with restaurants, consumers, and delivery companies. The shutdown will not affect the company’s mobility platform in Hong Kong.

Shares of Salesforce, Inc. (CRM) fell 6.2% in extended trading sessions as the company delivered a lower than expected fourth-quarter earnings forecast. However, third-quarter results topped estimates. Q3 earnings landed at $1.27 a share, down 27% year-over-year but above estimates of $0.92 a share. Revenue was up 27% year-over-year to $6.86 billion, exceeding consensus estimates of $6.79 billion.

Hewlett Packard Enterprise (HPE) shares fell 1.9% in the extended trading session after the company delivered mixed fiscal fourth-quarter results, despite strong demand for its offerings. Quarterly earnings were up 26.8% year-over-year to $0.52, exceeding consensus estimates of $0.49. Net revenue rose 2% year-over-year to $7.35 billion, lower than consensus estimates of $7.39 billion.

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