US stock futures were slightly higher on Friday after Thursday’s fall following reports that President Biden is considering a steep hike in capital gains tax (CGT). According to reports, CGT could be hiked to as much as 43.4%, from the current 20% CGT rate.
Dow and S&P futures were approximately 0.13% and 0.2% higher, respectively, while Nasdaq futures edged up 0.14% at the time of writing.
Ocugen (OCGN) was the most actively traded stock as its COVID-19 vaccine development partner, Bharat Biotech, released positive results for its Phase-III study of Covaxin that indicated a 78% efficacy rate in mild, moderate and severe COVID-19 cases.
Sypris Solutions (SYPR) was the biggest gainer in pre-market trading, rising 32.7% at the time of writing after the company announced that one of its subsidiaries, Sypris Electronics, has won a contract from the US Department of Defence (DoD) “to manufacture and test electronic assemblies for a Government spacecraft program.”
Evelo Biosciences (EVLO) was the biggest pre-market laggard dropping 20.7% at the time of writing. There was no fundamental news explaining the fall in stock price.
Companies that are expected to report today before the opening bell include American Express (AXP), Honeywell (HON), Kimberly-Clark (KMB) and Schlumberger (SLB).
In M&A news, semiconductor company Skyworks Solutions (SWKS), has acquired the infrastructure and automotive business of Silicon Laboratories (SLAB) in an all-cash transaction valued at $2.75 billion. Skyworks Solutions’ President and CEO, Liam K. Griffin said, “We are pleased to welcome the Infrastructure & Automotive team to Skyworks when this transaction is completed. This acquisition will broadly expand our capabilities across high-growth end markets including automotive, communications and industrial, creating new and highly compelling opportunities for Skyworks.”
Meanwhile, in earnings news, Intel (INTC) reported better-than-expected 1Q results with adjusted earnings of $1.39 per share, down 1% on a year-over-year basis but coming in ahead of Street estimates of $1.15 per share. Revenue remained flat at $18.6 billion but topped analysts’ expectations of $17.86 billion. Intel CEO Pat Gelsinger said, “The response to our new IDM 2.0 strategy has been extraordinary, our product roadmap is gaining momentum, and we’re rapidly progressing our plans with re-invigorated focus on innovation and execution.”
Seagate Technology (STX) reported better-than-expected fiscal third quarter results on Thursday with revenues of $2.73 billion, up by around 0.5% year-on-year and beating analysts’ estimates of $2.68 billion. The company reported non-GAAP diluted earnings per share of $1.48 that came in ahead of consensus estimates of $1.32.
Seagate Technology’s CEO, Dave Mosley said, “Seagate delivered another quarter of strong financial performance driven by ongoing operational execution and record sales of our high capacity nearline drives. We grew revenue, expanded profitability and achieved non-GAAP EPS above our guided range. Our March quarter results underscore the strength of our HDD [hard disk drive] product portfolio and increasing demand for mass capacity storage.”
Twitter (TWTR) is testing ‘Professional Profiles’, a new feature designed to make businesses and companies appear more professional on the platform. Twitter Business tweeted, “Like our new look? Today we’re launching an exciting test of a new profile type called Professional Profiles! Professional Profiles are a new tool that will allow businesses, non-profits, publishers, and creators — anyone who uses Twitter for work — to display specific information about their business directly on their profile.”
Facebook (FB) will soon start testing ads on its viral video app, Instagram Reels, targeting users in India, Brazil, Germany, and Australia. Facebook will also begin testing sticker ads on Facebook Stories while brands will be able to create sticker ads that can be placed on creators’ Stories.
