U.S. stock futures were trending higher on Wednesday, driven by major indices sinking, after yields spiked to levels not seen in two years. Fear appears to have gripped the market as rising inflation has heightened the prospect of the Federal Reserve hiking interest rates.
At the time of writing, Dow futures (DJIA) were up 0.06%, S&P futures (SPX) were up 0.11% and Nasdaq futures (NDX) were up 0.21%.
Upcoming Earnings
Morgan Stanley (MS), UnitedHealth (UNH), and Bok Financial Corp. (BOKF) are set to report their quarterly results before the bell. United Airlines Holdings (UAL), Wintrust Financial Corp (WTFC), and Kinder Morgan (KMI) will report after the market close.
Pre-market Movers
SoFi Technologies (SOFI) was the most active stock in the pre-market session, with 1.16M shares changing hands, at the time of writing. The stock was also up by about 18.82% amid reports that the San-Francisco company has secured regulatory approval to become a bank holding company.
Meanwhile, Zogenix (ZGNX) was the biggest gainer in the pre-market session, surging 60.29% at the time of writing. The spike comes amid reports that UCB has reached an agreement to acquire the epilepsy drug maker for about $1.9 billion.
Hess Midstream Partners (HESM) was one of the biggest loser in the pre-market session, dropping 18.09% at the time of writing. It is still unclear what is causing the stock to drop as no fundamental news has been released to justify the fall.
Market News
In M&A news, DaVita Inc. (DVA) has acquired transplant software company MedSleuth. The acquisition should strengthen the healthcare company’s prospects in the transplant market, since the software company specializes in addressing issues between transplant candidates, centers, and physicians.
Shopify (SHOP) has joined forces with JD.com (JD) to enhance cross-border e-commerce. The two have inked a strategic partnership to make it easier for independent brands in the U.S. to pursue consumers in China. Conversely, Shopify merchants will leverage JD.com’s quality supplier network to enhance their business, while targeting over 550 million customers in the JD.com ecosystem.
Nikola (NKLA) has secured a multi-year supply agreement that will see Proterra (PTRA) power its zero-emission trucks with its industry-leading battery technology. As part of the agreement, Proterra battery technology will be integrated into Nikola’s Tre battery electric vehicle (BEV) and the Tre fuel cell electric vehicle (FCEV). The first trucks powered by the Proterra battery technology should be out before year-end.
Goldman Sachs Group (GS) shares fell by as much as 7% after the investment bank delivered worse than-expected fourth-quarter results, hurt by a weak trading environment and higher compensation costs. The investment bank delivered earnings of $10.81 per share, worse than analysts’ estimates of $11.76. Net revenue grew 8% year-over-year to $12.64 billion, exceeding Street estimates of $12.08 billion.
Shares of Charles Schwab (SCHW) fell 3.5% after the financial services company delivered disappointing fourth-quarter results, attributed to uncertainty on economic growth and inflation. The company posted earnings of $0.86 a share below consensus estimates of $0.88 a share. Revenue was up 13% year-over-year to $4.71 billion, but fell short of consensus estimates of $4.79 billion.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure.
