Dow to jump after data, ahead of infrastructure meeting
BY THE NUMBERS
Dow futures rose after a slew of economic data before the bell and renewed hopes for an infrastructure deal at a White House meeting later Thursday. The rally back from the market took a break on Wednesday, although the Nasdaq managed to break another record, and it was set to rise on Thursday. With a large pool of stocks surging in pre-market trading, the S&P 500 was also expected to open to new highs. The Dow Jones was still coming out of last week’s hole. Ahead of Thursday’s session, it remained at 2.6% from its last closing record in early May. (CNBC)
The 10-year Treasury yield fell on Thursday, trading at just under 1.5%, as investors sifted through three government reports released an hour before the Wall Street opening bell. Initial jobless claims totaled 411,000 for last week, higher than estimates but down from the revised upward 418,000 the week before. Durable goods orders in May increased by 2.3%, slightly lower than forecast but better than the modest drop in April. The final revision of first quarter GDP remained at 6.4% annual growth. (CNBC)
A bipartisan group of senators seeks the support of President Joe Biden for a $ 953 billion infrastructure plan at Thursday’s meeting. Administration officials and Democratic leaders called the proposal a positive development. The president’s latest offer was a $ 1.7 trillion package. With Republicans opposed to Biden’s proposed corporate tax rate hike, the bipartisan group is looking for other ways to generate income. (PA)
Andreessen Horowitz announced a new $ 2.2 billion cryptocurrency-focused fund on Thursday. The Silicon Valley venture capital firm, founded by Marc Andreessen and Ben Horowitz, launched its first crypto fund three years ago, during what is now known as the “crypto winter.” That year, the value of bitcoin rose by around 80% from its highs in 2017. The latest fund also comes at another bearish moment for bitcoin. (CNBC)
* Why the crypto token crash that burned Mark Cuban may not predict bitcoin’s plunge (CNBC)
Eli Lilly shares rose 8% on Thursday before market after US drugmaker says he will drop a marketing application later this year for its investigational treatment for Alzheimer’s disease, under the FDA’s fast-track approval process. Earlier this month, three members of a key FDA advisory group resigned following the agency’s controversial decision to approve Biogen’s new Alzheimer’s drug. (Reuters)
A study in England looking at persistent symptoms of Covid suggests that around 2 million people in the country may have had the disease known as ‘long Covid’. The study is part of Imperial College London’s REACT research tracking the virus in England. (CNBC)
* The Delta Covid variant has a new mutation called “delta plus”: here’s what you need to know (CNBC)
The Teamsters will vote on a resolution on Thursday to step up efforts to organize Amazon Workers (AMZN). The e-commerce giant has long been the target of major unions seeking to organize warehouse workers and delivery men. Amazon defeated a high-stakes labor campaign in a large Alabama warehouse in April. (CNBC)
STOCKS TO MONITOR
Accenture (ACN) broke estimates by 17 cents per share, with quarterly earnings of $ 2.40 per share. Revenue also exceeded Street’s forecast. Accenture has seen an increasing demand for digital transformation services, with more and more companies adapting to a hybrid work model. Accenture also raised its forecast for the full year and its share jumped 4.3% in pre-marketing.
Rite Aid (RAD) reported quarterly earnings of 38 cents per share, 16 cents per share above estimates. Revenue was slightly lower than Wall Street forecast, however, and the drugstore chain’s shares fell 6% pre-market.
Darden Restaurants (DRI), parent company of Olive Garden and other restaurant chains, earned $ 2.03 per share for its most recent quarter, against a consensus estimate of $ 1.79 per share. Sales at the same Darden restaurant were up 90.4% from last year’s mid-pandemic quarter. Shares were flat in Thursday’s pre-market.
KB Home (KBH) reported quarterly earnings of $ 1.50 per share, 18 cents per share above estimates. The homebuilder’s earnings fell short of Wall Street forecasts, however, despite a 13% increase in selling prices and a 145% increase in new orders. KB Home shares lost 4% before market.
Visa (V) has reached a deal to buy the European banking platform Tink for around $ 2.2 billion. The decision to acquire the financial data-sharing company comes after Visa halted its $ 5.3 billion acquisition of Plaid following a government lawsuit. Visa shares edged up in the pre-market.
Comcast (CMCSA), parent company of NBCUniversal and CNBC, is considering various ways to dominate video streaming, according to the Wall Street Journal. The newspaper said CEO Brian Roberts was considering ideas like a tie-up with ViacomCBS (VIAC) or an acquisition of Roku (ROKU). Comcast told CNBC the story was “pure speculation.” The title added 1.6% in pre-market.
According to a JP Morgan analyst, some Dunkin locations have ditched Beyond Meat’s (BYND) “Beyond Sausage” breakfast sausage, and a Goldman analyst said a wrap with the sausage would likely suffer the same fate. Dunkin ‘told CNBC that he continues to have a close relationship with Beyond Meat and continues to explore new plant-based menu items. Beyond Meat was down 1.3% in pre-release.
Steelcase (SCS) jumped 5.2% in pre-market trading after reporting a smaller-than-expected loss for its final quarter. The office furniture maker also beat Wall Street estimates. The company said incomes will improve sequentially as more workers return to their offices. The stock was up 4.5% on the pre-market.
Conan O’Brien’s farewell to late-night TV reached a climax. His show “Conan” has been shocking with his famous friends and staff trotting on fan favorite characters in recent weeks. The last episode, broadcast Thursday evening, will feature Jack Black and surprise guests. (WSJ)