U.S. futures were trading relatively flat on Wednesday as investors wait for further details on policy makers’ sentiments regarding the economic recovery and inflation.
Dow, S&P and NASDAQ futures were fluctuating between positive and negative territory at the time of writing.
Investors are waiting for earnings results from RPM (RPM), Lamb Weston Holdings (LW) and Simply Good Foods (SMPL) before the bell, while Resources Connection (RGP), Exro Tech (EXROF) and Landec (LNDC) are expected to report after the market closes.
SOS (SOS) was the most actively traded stock in the pre-market with over four million shares having already changed hands. Yesterday, it was reported that a class action lawsuit has been filed against SOS for providing misleading information to investors.
Despite news of the lawsuit, SOS was the strongest stock in the pre-market climbing approximately 30% at the time of writing.
Meanwhile, FibroGen (FGEN) was the weakest stock before the bell falling 29% after the biotech drug maker announced inconsistencies in the classification of safety data related to its drug treatment for anemia.
In corporate earnings news, Maxeon (MAXN) fell 5.9% in Tuesday’s extended trading session after issuing Q1 guidance that came in below analysts’ expectations. Maxeon expects revenues of approximately $160 million in Q1 versus the Street’s forecast of $232.8 million. According to the company, the solar industry continues to face upstream supply chain cost challenges.
In M&A news, The Brink’s Company (BCO) announced the acquisition of ATM services provider, PAI Inc, for $213 million. “PAI brings a strong management team led by David Dove, robust technology, and a scalable, asset-light business model that complements our existing capabilities,” said Company President and CEO, Doug Pertz. BCO will gain access to a SaaS-based technology platform used to enhance ATM network performance as a result of the deal.
Graham Holdings (GHC) saw its previously agreed, $323 million buyout offer for Leaf Group (LEAF) rejected by Leaf’s long-term shareholder, Boyle Capital Opportunity Fund. Boyle said in a letter to the company’s board that the $8.50 per share offer is “grossly inadequate” and significantly undervalues the company. The deal is expected to close in June or July, but the company would need the approval of Leaf Group’s shareholders.
Genworth Financial (GNW) has terminated a buyout deal for China Oceanwide Holdings Group worth $2.7 billion after the Genworth board said that “Oceanwide will be unable to close the proposed transaction within a reasonable time frame.” The deal was originally proposed in Oct. 2016 but got delayed over concerns that China would gain access to sensitive information about US citizens.
Norwegian Cruise Line Holdings (NCLH) climbed another 3.5% before the open after closing 4.6% higher on Tuesday. The cruise line unveiled its “two-pronged plan” to resume with cruises from Jamaica, Dominican Republic, and Greece starting in July. Initial voyages will only operate with fully vaccinated guests and crew and will include COVID-19 testing for all before boarding as part of NCLH’s SailSAFE health and safety program. President and CEO, Frank Del Rio said, “We are excited to unveil our initial plans for the resumption of cruise voyages embarking outside of the U.S. with sailings to the Caribbean and Europe.”