Wednesday’s Pre-Market: Here’s What You Need to Know Before the Market Opens

U.S. stock futures were trending higher on Wednesday as investors await Russian President Vladimir Putin’s next move following the imposition of a string of sanctions from Western nations.

Dow futures (DJIA) were up 0.66%, S&P futures (SPX) were up 0.78%, and Nasdaq futures (NDX) were up 1.14% at the time of writing.

In addition to tensions in Europe, investors are still wary of whether the global economy can handle rising interest rates amid the rising geopolitical tensions. The U.S. Federal Reserve is under immense pressure to hike interest rates to clamp down on rising inflation.

Upcoming Earnings

Gerdau SA (GGB), Henkel AG (HENKY), and Koppers Holdings Inc. (KOP) are set to report their quarterly results before the bell. Chesapeake Energy (CHK), Definitive Healthcare Corp. (DH), and fuboTV (FUBO) will report after the market close.

Market News

Cummins Inc. (CMI) has reached an agreement to acquire automobile components producer Meritor (MTOR) for $3.7 billion. The power generation products manufacturer is to finance the purchase through a combination of cash and debt. The acquisition should enhance the company’s ability to offer powertrain solutions across combustion and electric power applications.

Meanwhile, SoFi Technologies, Inc. (SOFI) has reached an agreement to acquire Florida-based platform Technisys. The all-stock deal will cost the company approximately $1.1 billion, with the transaction expected to close in the second quarter of the year. The acquisition is expected to generate cost savings of between $75 million and $85 million between 2023 and 2025.

Macy’s, Inc. (M) delivered better-than-expected fourth-quarter results with net sales and earnings beating estimates. The omnichannel retailer delivered Q4 adjusted earnings of $2.45 a share, above consensus estimates of $1.96 a share. Quarterly net sales were up 27.9% year-over-year to $8.67 billion, outpacing street estimates of $8.43 billion.

Shares of Medtronic Plc. (MDT) gained 3.1% after the medical devices company delivered mixed Fiscal Q3 2022 results characterized by revenue growth across all segments. Adjusted earnings in the quarter grew 6% year-over-year to $1.37, in line with analyst estimates. Quarterly revenues, on the other hand, landed at $7.76 billion, falling short of consensus estimates of $7.94 billion.

Meta Platforms’ (FB) social networking app Facebook plans to make its short video feature Reels available in more than 150 countries. Users will be able to view videos in Stories, the Watch tab, and within the news feed in some countries. In addition, Facebook will make it easier for content creators to earn ad revenue from overlay ads on videos.

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