Stocks win, SEC GameStop report, praise IPO-5 What you need to know

Here are five things you need to know for Tuesday, October 19:

1. – Stock Futures Gain Before Profits Slate

U.S. equity futures edged higher on Tuesday, following a strong tech rally last night, as investors track a pullback in Treasury bond yields ahead of a heavy corporate earnings list later in the session .

Dow Johnson & Johnson components (JNJ) – Get the Johnson & Johnson Report (JNJ), Procter & Gamble (PG) – Get the Procter & Gamble Company Report and Travel Companies (VTR) – Get the report from Travelers Companies, Inc. will release its third quarter results before trading begins on Tuesday, with Netflix (NFLX) – Get the Netflix, Inc. (NFLX) report unofficially launch the start of major technical reports after the closing bell.

With investors looking for collective S&P 500 profits up 32% from a year ago to $ 421.4 billion, with a solid 22.3% growth rate to follow in the fourth quarter, Strong earnings have supported markets at a time when inflationary pressures remain stubbornly entrenched and economic. growth is expected to slow down in the final months of the year.

A slight pullback in 10-year Treasury yields, which were trading at 1.584% overnight, and a weaker US dollar also provide early support on Tuesday, with futures contracts linked to the Dow Jones Industrial Average showing a opening bell gain of 100 points.

Futures linked to the S&P 500, meanwhile, are valued for an exit from their best week since July, are valued for a 15-point lead and those linked to the Nasdaq Composite indicate a 45-point bullish move at the start of the market. negotiation.

2. – SEC Says GameStop Surge Is Fueled By Sentiment, Not Short Sellers

GameStop (GME) – Get the Class A report from GameStop Corp., the money-losing video game retailer at the epicenter of a so-called “memes stocks” revolution earlier this year, has gained its meteoric rise due to positive sentiment from investors, not sellers at discovered, the Securities and Exchange Commission said late Monday.

In a report that focused on the reasons for the January stock memes rally, which pushed GameStop to $ 23 billion, the SEC said that while short sellers were active in betting stocks, its rise was powered by investors who believe in the company – and their use of ‘game type’ trading applications – by professional traders who scramble to hedge their short positions.

Whether motivated by the desire to squeeze short sellers and thus profit from the resulting price hike, or by belief in GameStop fundamentals, it’s the positive sentiment, not the buy. to cover, which has supported the GameStop share price appreciation weeks, ”the SEC said.

The report, however, did not address issues related to alleged market manipulation on social media websites or whether there has been any pressure on e-commerce companies such as Robinhood to restrict access to certain stocks on the Internet. stronger from the meme trade frenzy.

3. – The FDA is preparing to approve COVID “Mix & Match” boosters

The United States Food & Drug Administration is set to approve the “mix and match” of COVID vaccines when Americans received booster shots this winter, The New York Times reported Monday evening.

The FDA is likely to indicate a preference for matching the booster with the original vaccine, but a study that noted that recipients of the Johnson & Johnson vaccine had higher levels of antibodies from an MRNA booster Moderna could allow the FDA to expand the choice for American vaccines and increase the demand for vaccines manufactured by Moderna and Pfizer PFE.

The FDA’s Vaccines and Related Biologics Advisory Committee, which has already given the green light to boosters made by Pfizer and Moderna, will meet on Thursday to make a formal recommendation Thursday.

Moderna shares rose 0.95% in pre-market trading on Tuesday to $ 338.00 each, while Pfizer edged up 0.5% to $ 41.51 each.

4. – DraftKings Faces respects the submission deadline

DraftKings (DKNG) – Get the DraftKings Inc. (DKNG) report shares rose in pre-market trading on Tuesday as the sportsbook group faced an “set up or close” deadline on its $ 22 billion approach for UK bookmaker Entain.

United UK takeover rules, DraftKings must formalize its $ 22.4 billion bid for Entain, which operates the Coral and Ladbrokes betting shop and has a US joint venture with MGM Resorts International (MGM) – Get the MGM Resorts International (MGM) report, before the market closes today or be absent from the business for at least six months.

MGM, which made an $ 11 billion approach for Entain earlier this year, has insisted its joint venture is barring DraftKings from accessing the London-based group’s US operations.

DraftKings shares were marked 0.3% higher in pre-market trading to indicate an opening bell price of $ 48.80 each.

5. – Rent The Runway sees a valuation of $ 1.3 billion following its IPO

Rent The Runway, a New York-based fashion group that allows members to rent high-end clothing for a short period of time, will go public in a $ 1.3 billion ad later this year.

The company will sell around 15 million shares, she said in a Securities and Exchange Commission filing Monday evening, at a price of between $ 18 and $ 21 each in an initial public offering that will raise around $ 315 million and assess the group at around $ 1.3 billion.

Earlier this month, Rent the Runway said it generated $ 157.5 million in revenue last year, but recorded a net loss of $ 171.1 million as it ramped up operations and assumed higher costs amid the COVID pandemic.

Its shares will trade on the Nasdaq under the symbol RENT.

Source link