Bound for the rebound: Futures tied to the S&P 500 are currently up 0.6%, with Dow futures also in the green at 0.5% and Nasdaq futures up 0.6%. Shares moved higher despite falling in Monday’s trading on the back of fresh hopes for a coronavirus relief package. “The Speaker continues to hope that, by the end of the day Tuesday, we will have clarity on whether we will be able to pass a bill before the election,” the California Democrat’s spokesman, Drew Hammill, said.
Shares of IBM are falling 3% in Tuesday’s pre-market trading, as its revenues continued to decline for the third consecutive quarter. Nevertheless, revenue surpassed Street’s estimates due to higher demand for its cloud offerings. The company didn’t provide any 4Q outlook citing uncertainty over the global economic recovery.
Similarly Hexcel Corp is plunging 8% right now after the industrial material company reported dismal 3Q results. The company’s top and bottom line missed analysts’ expectations mainly due to a significant reduction in demand for its products amid the COVID-19 pandemic.
On a more positive note, Logitech is exploding 22% this morning. LOGI’s quarterly revenue soared 75% as the computer products maker continued to profit from the work-at-home shift. This marked the first time its quarterly revenue shot past the billion-dollar mark. As a result, Logitech raised its 2021 outlook to 35% – 40% sales growth in constant currency, up from 10% – 13% previously.
Zions Banc also delivered 3Q EPS of $1.01, which was higher than analysts’ estimate of $0.88. Its revenues of $712 million beat the Street consensus by $3.67 million. The bank holding company’s shares are up 1.9% in Tuesday’s pre-market session.
Aside from earnings, Intel has agreed to sell its NAND memory and storage business unit to South Korean chipmaker SK Hynix in an all-cash deal valued at $9 billion. The chipmaker plans to use the sale proceeds to invest in other fast-growing areas, including 5G networking, artificial intelligence, and the autonomous edge. Shares rose 1% on Monday and are now up 0.55%.
Also on the deal front, Pioneer Natural Resources is currently in discussions to buy Parsley Energy, reports the Wall Street Journal. According to the publisher’s sources, the two shale producers are considering an all-stock deal that could be completed by the end of the month if the talks don’t fall apart.
Meanwhile Alibaba has snapped up a 6.1% stake in Swiss duty-free retailer, Dufry AG, as part of a $900M capital increase. Following the capital raise, PE firm Advent International will also take a 11.4% stake in Dufry. The companies have agreed to a lock-up period of six months following the first day of trading of the new shares.
And Verizon has teamed up with Microsoft and Nokia to help its business clients globally to build faster and more secure applications through private 5G networks. On-site private 5G networks enable businesses to boost power efficiencies and cut costs of end user devices, while helping to address their privacy and security needs, says Verizon.
Finally Qorvo has partnered with Nordic Semiconductor to develop cellular IoT solutions using Qorvo’s RFFE modules. Svein-Egil Nielsen, CTO at Nordic, commented: “We are very impressed by the features and performance of Qorvo’s new modules. With their high integration level, extensive band coverage, and support for both NB-IoT and LTE-M, they enable truly global products—while providing industry-leading power consumption and robust design margins.”
Ahead of Tesla’s 3Q financial results tomorrow, Reuters reports that Tesla’s vehicle registrations in California, its largest US market, suffered a 13% decline in Q3 versus the same period last year. However on a quarter-to-quarter basis, Cross-Sell data showed that California registrations recovered from a 2Q low of about 9,800 vehicles to 16,200 vehicles in 3Q. TSLA shares dropped 2% on Monday, and are now up 1% in pre-market trading.
Keep an eye out: Netflix is set to report its earnings today after market close. Monness analyst Brian White told clients, “In our view, Netflix already represented a compelling secular story as more consumers opted for streaming video services and then the COVID-19 crisis disrupted our lives. This crisis has clearly accelerated a natural secular trend that was already playing out.”
