Market News

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

Extending Monday’s rally, S&P 500 futures are currently trading 0.73% higher. Likewise Dow Jones futures are up 0.7%, with Nasdaq futures up 0.95% following Monday’s gains of 1.18% and 1.87% respectively. “Wall Street appears to have recovered some of its mojo,” wrote Mizuho Bank. “The question to ask, though, is whether we are dealing with optimism or there is just optimism about deals.”

Coming up today we have the Empire State Manufacturing Index for September, Import and Export Prices for August and Industrial Production for August. The Federal Reserve is also kicking off a two-day meeting, with an interest rates decision expected tomorrow afternoon. Respondents in the CNBC Fed Survey now forecast no rate hikes from the central bank until 2023.

It’s September 15, and you know what that means, it’s time for another Apple product announcement. The tech giant’s grand product reveal will be held online today. Writing for Deutsche Bank, analyst Jeriel Ong was surprised by the assumption that new iPhones will be announced during the event as AAPL already stated on the latest conference call that the release could come “a few weeks later.” The analyst originally “interpreted that the iPhone delay would also mean delays for any typical September media event.

Social media giant Facebook is also busy, snapping up the brand-new HQ of Recreational Equipment Inc. – REI – near Seattle, for $367.6M. As the Wall Street Journal writes, this deal is the latest sign that large tech companies are driving the commercial real estate industry right now.

Shares in Nikola are plunging 9% in Tuesday’s pre-market session amid a Bloomberg report that the US SEC is examining the merits of short-seller Hindenburg’s allegations that the electric truck maker misled investors about its business prospects. On Monday, NKLA closed 11% higher after the company issued a lengthy statement to set the “record straight” on the “false and defamatory” report published by Hindenburg Research on Sept. 10. In the report, Hindenburg claimed that Nikola is an “intricate fraud built on dozens of lies.

Up, up and up: Nanocap Novus Therapeutics is spiking over 135% this morning after completing the acquisition of Anelixis Therapeutics, a biotech developing a next generation anti-CD40 Ligand (CD40L) antibody as a potential treatment for organ and cellular transplantation, autoimmune diseases, and neurodegenerative diseases. Novus also entered into a definitive agreement to sell $108M of non-voting convertible preferred stock in a private placement to institutional investors.

Marinus Pharma is also surging 64% right now after announcing positive top-line results from its Phase 3 clinical trial of oral ganaxolone in children and young adults with CDKL5 deficiency disorder (CDD), a rare, genetic epilepsy with refractory seizures. In the trial, patients given ganaxolone showed a significant 32.2% median reduction in 28-day major motor seizure frequency, compared to a 4% reduction for those receiving the placebo, achieving the primary endpoint.

Also in the green- though by a much more moderate extent- is RV maker Camping World, currently up 8% following Monday’s 4.8% gain. Notably, it now expects to grow adjusted EBITDA in the mid-single digits over the next 5 years, with a goal of over $500M in adjusted EBITDA in 2021, vs its previous forecast of $460M- $490M in 2020. CWH also revealed plans to launch a new peer-to-peer RV rental marketplace in the spring of 2021. 

Meanwhile Monolithic Power is gaining almost 2% in Tuesday’s pre-market after raising its 3Q revenue guidance. The designer and developer of high-performance power solutions now projects 3Q sales between $257-$259M, up from $200-$210M previously. Two non-recurring factors drove the better than expected revenue, notes Needham’s Quinn Bolton, 1) more delinquent orders fulfilled during the quarter than expected, which drove most of the upward revision, and 2) order pull-ins from Chinese customers.

NextEra Energy is rising 6% after announcing a four-for-one split of its common stock, which it says should make the stock more accessible to a broader base of investors. NEE also boosted its financial expectations, citing the ongoing strength of the renewables development environment and the continued execution across its businesses. “A 20-cent increase to 2021 guidance and an extension of the 6-8% growth rate through 2023 off the increased base further highlight NEE’s position as a leader in the space” cheered RBC Capital’s Shelby Tucker on the news.

On hold: AstraZeneca’s Covid-19 vaccine trial is on pause in the US pending an investigation into a suspected serious adverse reaction in the UK, sources told Reuters. AstraZeneca has now resumed its late-stage trial of AZD1222 in the UK but Reuters reports that enrollment of new patients and other trial procedures for the pivotal US trial were being rescheduled until at least midweek. These sources said that it was not clear how long it would take for the FDA to complete its investigation.

On a more positive note, BioNTech will receive a grant of up to 375M Euro from the German Federal Ministry of Education and Research to support the accelerated development of SARS-CoV-2 vaccines. It will use the milestone-based funding to support the mRNA vaccine program BNT162 that it is currently co-developing with Pfizer and Fosun Pharma.

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