U.S. stock futures edged lower on Thursday as investors await data regarding the pace of recovery in the labor market. The weekly unemployment claims report and the ADP national employment report for May will be released today.
Dow futures fell 0.5%, while S&P and Nasdaq futures were trading 0.6% and 0.86% lower at the time of writing.
Companies expected to report before the opening bell include Ciena (CIEN), J.M. Smucker (SJM), Toro Company (TTC), while Lululemon Athletica (LULU) and Broadcom (AVGO) are expected to report after the market close.
Medical cannabis stock, Sundial Growers (SNDL), was the most actively traded stock in pre-market trading with around 38 million shares having changed hands at the time of writing. There was no fundamental news explaining the trading frenzy.
Telecommunications company GTT Communications (GTT) was the biggest gainer as the stock soared 28.4% at the time of writing. The company announced the buyback of 3.7 million shares at a maximum purchase price of €120 per share.
China Pharma Holdings (CPHI) was the biggest laggard in pre-market trading as the stock plunged 12.5% at the time of writing. There was no fundamental news explaining the price drop.
In earnings news, apparel company PVH Corp. (PVH) announced robust Q1 results with revenues of $2.08 billion in Q1, a jump of 55% year-over-year and topping the Street’s estimates of $1.93 billion.
The company reported adjusted earnings of $1.92 per share, which came in ahead of the consensus estimates of $0.83 per share. A loss of $3.03 per share was reported in the same quarter last year.
PVH Corp CEO Stefan Larsson said, “Looking ahead, we are increasing our full year outlook despite continued uncertainty in the macro environment, as we navigate through the pandemic and related supply chain disruptions. We are confident in our ability to drive towards an accelerated recovery in a way that positions PVH closer to the consumer than any time before.”
Meanwhile, American automotive after-market parts provider Advance Auto Parts (AAP) delivered strong first-quarter results. The company posted net sales of $3.3 billion, up 23.4% year-over-year, coming in ahead of the Street’s estimates of $3.28 billion.
The company reported Q1 adjusted earnings of $3.34 per share, topping the consensus estimates of $3.08 per share, and soaring 234% year-over-year.
Advance Auto Parts’ CFO Jeff Shepherd said, “We continue to see top-line sales strength in the early weeks of the second quarter of 2021. Through the first four weeks of Q2, our comp sales continue to trend in the mid-teens and on a two-year stack are comparable with our Q1 2021 increase of 15.4%. While we’re still anticipating significant volatility throughout the balance of this year due to macro-economic factors, we’re again updating our full year guidance to reflect this continued top-line momentum.”
In M&A news, Southwestern Energy (SWN), a natural gas producer, will acquire Indigo Natural Resources for $2.7 billion in a cash and stock deal. Indigo Natural Resources is a privately held natural gas producer. The acquisition is expected to close in the fourth quarter of this year.
“Indigo has done a terrific job building its business, and its balance sheet strength, low cost structure and high-quality acreage position in the core of the Haynesville play accelerates the delivery of our strategic goals,” said Southwestern Energy CEO Bill Way.
Meanwhile, Skillz (SKLZ), a mobile gaming platform, will acquire Aarki in a cash and stock deal valued at $150 million. Aarki is a technology-driven marketing platform, and the addition of Aarki’s machine learning algorithms and advanced advertising capabilities will help Skillz to enhance its presence in the mobile gaming industry. The acquisition is expected to close in Q3 of this year.
Skillz CEO Andrew Paradise said, “Aarki’s proven machine learning will pair with Skillz’s robust first-party data to create an unrivaled value proposition for game developers.”
TowneBank (TOWN), a provider of retail and commercial banking services has upped its quarterly dividend by 11.1% to $0.20 per share. The dividend will be payable on July 9 to shareholders of record on June 30.
