Toplines Before US Market Open on Monday

Tiger Newspress2021-12-13

U.S. stock-index futures pointed to muted gains for major indexes ahead of a busy week of central-bank decisions in major economies.

At 8:00 a.m. ET, S&P 500 e-minis were up 11.25 points, or 0.24%, Nasdaq 100 e-minis were up 67 points, or 0.41%, and Dow e-minis were up 24 points, or 0.07%.The key inflation reading came ahead of the Federal Reserve’s two-day policy meeting this week where the policymakers are expected to discuss speeding up the end of its bond-buying program.

Fed Chair Jerome Powell, as well as a parade of Fed speakers, all recently suggested the central bank could end the $120 billion monthly bond purchase program sooner than the current timeline of June 2022.

“We believe markets can continue to take a higher inflation reading in their stride, though additional volatility remains a risk. With Fed policy staying relatively accommodative, the backdrop for equities is still positive, and we favor winners from global growth,” said Mark Haefele, Chief Investment Officer of UBS Global Wealth Management.

As of Sunday, the U.S. was approaching 800,000 coronavirus-related deaths. The new variant has pushed some government officials to reinstate health restrictions to slow the spread.

Stocks making the biggest moves premarket:

Harley-Davidson– The motorcycle maker’s stock surged 11.7% in the premarket after it announced that it is merging its “Livewire” electric motorcycle unit with a special purpose acquisition company. Livewire will have an enterprise value of about $1.8 billion and will trade on the New York Stock Exchange under the ticker symbol “LVW.”

Pfizer,BioNTech SE Pfizer rose 1.4% in the premarket while BioNTech SE jumped 4.4% after a new Israeli study showed that a booster shot from their Covid-19 vaccine provided strong protection against severe illness from the omicron variant. Pfizer’s pre-market gains were trimmed following news of its deal to acquire Arena Pharmaceuticals.

Arena Pharmaceuticals – The drugmaker agreed to be acquired by Pfizer for $100 per share in cash, or about $6.7 billion. Arena soared 93.1% in premarket trading following news of the transaction.

Peloton Interactive, Inc. – The fitness equipment maker rebounded 2.6% in premarket action after falling 7% over the past three sessions. Pelotonreleased an ad featuring actor Chris Noth promoting the value of the company’s equipment, after his character’s death in the “Sex and the City” reboot following a Peloton ride.

Dollar Tree – The discount retailer’s stock fell 1% in premarket trading after activist investor Mantle Ridge announced its intention to try to replace the entire Dollar Tree board. Dollar Tree called the move “unwarrantedly aggressive” and said it had offered to explore a settlement with Mantle Ridge, which owns 5.7% of Dollar Tree.

Apple Apple rose 1.1% in the premarket after J.P. Morgan Securities raised its price target for the stock to a Street-high of $210 per share from $180 a share, and reiterated it as a top pick going into 2022.

Nasdaq-100 additions – Stocks being added to the index as of Monday, December 20, rose in premarket trading following news of their inclusion. The stocks include Palo Alto Networks, up 2.7%;Airbnb, Inc. , up 2.1%;Fortinet , up 3.7%;Lucid Group Inc, up 5.9%;Zscaler Inc., up 3.4%; and Datadog, up 3.1%.

Nasdaq-100 subtractions – Stocks being replaced in the Nasdaq-100 include CDW Corp , down 1.8% in the premarket;Fox Corporation Class A , down 2.2%;Cerner , down 1.8%;Check Point , down 1.1%;Trip.com Group Limited , down 1.2%; and Incyte, down 0.6%.

Rivian Automotive, Inc. – The electric vehicle maker’s stock rose 1.9% in the premarket following news that its R1T had been named Motor Trend’s truck of the year, beating out entries from Ford, GM and Hyundai.

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