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

After the S&P 500 reached another record high on Monday, closing above 3,400 for the first time, European stocks opened higher in Tuesday’s trading. S&P 500 futures also rose 0.5% overnight following positive developments in US/ China trade talks, and falling Covid-19 cases (according to John Hopkins University). Japan’s Nikkei was up 1.4%, with the MSCI AxJ up 0.15%.

A Dow revamp: The Dow Jones Industrial Average index is now set to include Salesforce.com, Amgen and Honeywell International from August 31- replacing Exxon Mobil, Pfizer and Raytheon Technologies. Prompted by Apple’s recent 4-1 stock-split, Dow says the move will boost its tech exposure and “help diversify the index by removing overlap between companies of similar scope and adding new types of businesses that better reflect the American economy.”

Corona: AstraZeneca has now initiated an early study trial of AZD7442, a combination of two monoclonal antibodies (mAbs), for the potential prevention and treatment of Covid-19. In this first-in-humans dose escalation study, AZD7442 will be evaluated for safety, tolerability, pharmacokinetics, and generation of anti-drug antibodies (ADAs).

Also on the healthcare front, Morphic Therapeutic has revealed that AbbVie has exercised a license option to develop Morphic’s αvβ6 integrin inhibitors for the treatment of fibrotic diseases including idiopathic pulmonary fibrosis (IPF) and additional indications. This triggers a $20M license fee to Morphic.

Alibaba’s Ant Group, aka Ant Financial, has now filed for an initial public offering (IPO) in both Hong Kong and Shanghai. Run by Alibaba founder Jack Ma, Ant reported profit of 21.9 billion Chinese yuan ($3.2 billion) on 72.5 billion yuan of revenue in the first half of 2020, up over 1000% from the same period last year.

FAANG updates: Google has announced a $100M investment into telehealth platform Amwell, while Amazon has launched an all-you-listen audio service, Audible Plus, for just $7.95 a month.

On Monday evening, US District Court Judge Yvonne Gonzalez Rogers denied Epic Games’ motion to temporarily bring back Fortnite to the iOS App Store. However she did order Apple to not block Epic from developing and distributing Unreal Engine on its ecosystem.

Medtronic has just announced a solid earnings beat with FQ1 Non-GAAP EPS of $0.62 beating Street estimates by $0.44; GAAP EPS of $0.36 beating by $0.62; and Revenue of $6.51B beating by $1.03B (but down 13% year-over-year).

Also coming in strong is Best Buy with FQ2 Non-GAAP EPS of $1.71 smashing consensus by $0.62 and GAAP EPS of $1.65 beating by $0.64. Revenue of $9.91B topped Street expectations by $120M- and was up almost 4% year-over-year.

Papa John’s has also just reported comparable sales growth at domestic company-owned restaurants of 18% for the August fiscal period, and 26.1% at North America franchised restaurants. System-wide international restaurants saw comp sales surge 23.1%. CEO Rob Lynch said, “Papa John’s sales, driven by product innovation, remained strong in August…. Our international business gained further momentum in August too and continues to improve as more countries across the globe open back up for business.

However Palo Alto is sinking 6% in pre-market trading following its earnings report last night. According to Baird analyst Jonathan Ruykhaver F1Q21 guidance was solid; and color was positive around the top line but implied non-GAAP EPS guidance came in below consensus as the company looks to continue to invest in the business and its emerging offerings.

Salesforce and Autodesk are two key companies reporting earnings after the close of market today. You can read about RBC Capital’s bullish earning previews for CRM here and for ADSK here.

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