U.S. stock futures were trending higher on Wednesday as investors continue to assess the effects of a surge in commodity prices. Caution remains in the market amid growing concerns about a slowdown in global growth due to inflation.
Dow futures (DJIA) were up 1.46%, S&P futures (SPX) were up 1.64%, and Nasdaq futures (NDX) were up 2.00% at the time of writing.
Focus shifts to the Federal Reserve and the actions it is likely to take to avoid a recession amid escalating uncertainties. The FED is expected to raise interest rates at its next policy meeting next week to contain the rising inflation.
Upcoming Earnings
Adidas (ADDYY), Assertio Therapeutics Inc. (ASRT), and NuVista Energy (NUVSF) are set to report their quarterly results before the bell. Safe Bulkers (SB), Vaalco Energy Inc. (EGY), and Morneau Shepell Inc. (MSIXF) will report after the bell.
Market News
In M&A news, Alphabet’s (GOOGL) Google has reached an agreement to acquire cybersecurity firm Mandiant (MNDT) in an all-cash deal worth $5.4 billion. Under the terms of the deal, Google is to pay $23 a share for each Mandiant share, representing a 57% premium. The transaction is expected to close before year-end.
Amazon (AMZN) has unveiled Amp, a new live audio app that lets people be their own radio DJs. The new app comes with a catalog of millions of songs that allows people to play their favorite tunes on live shows. However, the app is currently in the beta phase, and thus, available on an invite-only basis. Amazon is still testing the product to enhance the customer experience once it officially launches.
McDonald’s Corp. (MCD) is the latest U.S. company to suspend operations in Russia in response to the ongoing invasion of Ukraine. The fast-food chain has stopped operating its outlets in 850 locations. It joins a growing list of companies that have joined the corporate exodus, including Starbucks (SBUX), Coca-Cola (KO), and Pepsi (PEP).
Dick’s Sporting Goods, Inc. (DKS) shares popped 2.4% after the sporting retail company delivered better-than-expected fourth-quarter 2022 and full-year results. Net sales in the quarter were up 7.3% year-over-year to $3.35 billion, beating consensus estimates of $3.3 billion. Earnings per share increased 50% year-over-year to $3.64, exceeding consensus estimates of $3.43 a share.
Ford Motor Company (F) has entered into a strategic agreement with data analytics firm Verisk (VRSK). The two are joining forces to offer standardized insurance-ready telematics data for connected Ford vehicles in Europe. The strategic partnership will make it easier for insurers to get a clearer view of drivers’ risks, while customers will enjoy customized insurance offerings.
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