During Market hours Yesterday — (Wednesday – 08.09.2021):
- The Dow (Symbol: DIA) sunk 0.20%. The S&P 500 (Symbol: SPY) slid 0.12% and the Nasdaq (Symbol: QQQ) went down 0.35%.
- Nio (Symbol: NIO)— Shares of the Chinese electric vehicle company tumbled 6% after it announced a $2 billion stock offering. The Tesla rival said it would use the proceeds to strengthen its balance sheet and for general corporate purposes.
- Coinbase (Symbol: COIN)— Shares of the largest U.S. cryptocurrency exchange dropped 3.2% after revealing it received a notice of possible enforcement action from the Securities and Exchange Commission. The regulator intends to sue Coinbase over the product, called Coinbase Lend, the company disclosed in a Tuesday night blog post.
- Citrix Systems (Symbol: CTXS)— Shares of the software company rose nearly 3% after the Wall Street Journal reported that activist fund Elliott Management has built a stake of more than 10% in the stock, putting its stake at roughly $1.3 billion or more. Elliott previously held a board seat at Citrix.
- PayPal (Symbol: PYPL)— PayPal shares retreated 2.7%. The digital payments platform said it would acquire Japanese “buy now, pay later” company Paidy in a deal worth $2.7 billion. The move is the latest in a flurry of “buy now, pay later” plays. Square said in August it would buy Australian firm Afterpay, and Amazon announced a partnership with Affirm. Affirm (Symbol: AFRM) and Square (Symbol: SQ) each lost about 4%.
- Coupa Software (Symbol: COUP)— Shares of the software name 4.2% despite the company beating top- and bottom-line estimates during the second quarter. Coupa earned 26 cents per share excluding items, compared to the 6-cent loss analysts surveyed by Refinitiv were expecting. Revenue came in at $179.2 million, also ahead of the expected $163 million.
- Chinese stocks — A slew of Chinese stocks sold off in unison on Wednesday amid the ongoing Beijing crackdown. Didi (Symbol: DIDI), the world’s largest ride-hailing company, saw its shares dropping 7.3%, while Pinduoduo (Symbol: PDD) lost 2.8% and Alibaba (Symbol: BABA) slid about 2.5%. The government stepped up its oversight on many industries including tech, education and gaming, while tightening rules for oversea listings. Hedge fund exposure to Chinese equities and indexes listed in the U.S. has dropped to a two-year low.
- Chipmakers — Shares of chipmakers were lower Wednesday amid the ongoing global chip shortage, as demand for chips continues to extend beyond cars and computers, outstripping supply. Western Digital shares (Symbol: WDC) lost 3.8%, while Micron Technology (Symbol: MU) fell 1.86% and Nvidia (Symbol: NVDA) slipped by 1.4%.
During Premarket hours today – (Thursday – 09.09.2021):
Weekly jobless claims post sharp drop to 310,000, another new pandemic low
- Lululemon (Symbol: LULU) – Lululemon reported adjusted quarterly earnings of $1.65 per share, easily beating the consensus estimate of $1.19. The apparel maker’s revenue also topped estimates, helped by a surge in direct-to-consumer sales. Lululemon also raised its full-year guidance. The stock surged 13.5% in the premarket.
- GameStop (Symbol: GME) – GameStop skidded 7.5% in premarket action after it reported an adjusted loss of 76 cents per share for its latest quarter, 9 cents wider than analysts were anticipating. Revenue did top Wall Street forecasts, and the videogame retailer saw its loss narrow from a year ago as sales grew by more than 25%.
- Boston Beer (Symbol: SAM) – Boston Beer tumbled 9.6% in premarket trading after the brewer of Sam Adams beer pulled previously issued financial guidance. The company said it had underestimated demand for its Truly hard seltzer brand ahead of the summer.
- RH (Symbol: RH) – RH beat consensus estimates by $2.00 with adjusted quarterly earnings of $8.48 per share, and revenue above Street forecasts. The home furnishings company said it continues to see elevated demand from consumers spending more time at home. RH also raised its full-year outlook, and the stock added 2.1% in the premarket.
- United Airlines (Symbol: UAL) – The airline trimmed its outlook due to the surge in Covid-19 cases that has cut into passenger demand. United is adjusting its capacity in response and said if current trends continue, it will report an adjusted fourth-quarter loss. United shares fell 1.4% in premarket action. Southwest Airlines (Symbol: LUV), JetBlue (Symbol: JBLU) and American Airlines (Symbol: AAL) followed with similar warnings. JetBlue lost 1.4%, American fell 1.2% and Southwest was down 0.9% in premarket trading.
- Caesars Entertainment (Symbol: CZR) – Caesars struck a deal to sell the non-U.S. assets of its William Hill sports betting unit to British gambling firm 888 Holdings for about $3 billion. Caesars had acquired William Hill earlier this year.
- NetEase (Symbol: NTES), Bilibili (Symbol: BILI) – NetEase and Bilibili are among the U.S.-traded China gaming and media stocks under pressure after the companies were summoned by authorities to ensure that new rules for those sectors were being implemented and followed. NetEase fell 5.5% in the premarket, while Bilibili was down 7.2%.
- Analog Devices (Symbol: ADI) – Analog Devices said it expected its 2020 purchase of rival semiconductor maker Maxim would add to adjusted earnings 12 months after closing, 6 months sooner than it had initially anticipated. Analog Devices also added $2.5 billion to its share repurchase program.
- Warner Music Group (Symbol: WMG) – The music publisher’s shares fell 2.1% in the premarket after StreetAccount reported that a 3.15 million share block was being shopped through Morgan Stanley.
- Macy’s (Symbol: M) – Macy’s gained 1.2% in premarket trading after Cowen upgraded the retailer’s stock to “outperform” from “market perform”, noting better inventory and pricing management as well as a more robust digital strategy.
*Any information contained in this article, including any information contained in external third party links, if any, is solely for informational purposes and does not contain, or should not be construed as containing, investment advice or an investment recommendation, or, an offer of or solicitation for any transactions in financial instruments. Past performance does not guarantee or predict future performance. Colmex Pro Ltd does not take into account your personal investment objectives or financial situation and makes no representation, and assumes no liability to the accuracy or completeness of the information provided, nor for any loss arising from any investment based on presented information.