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Friday’s Pre-Market: Here’s What You Need To Know Before The Market Opens

U.S. stock futures were mixed on Friday as investors await more data indicating the pace of recovery in the labor market with the jobs report for May set to be released today.

Futures of all three major indices were trading relatively flat at the time of writing.

Earnings scheduled to be released today include Ain Holdings (AINPF), Hooker Furniture (HOFT), and Crossroads Systems (CRSS).

Medical cannabis stock, Sundial Growers (SNDL), was the most actively traded stock in pre-market trading with around 4.8 million shares having changed hands at the time of writing. There was no fundamental news explaining the trading frenzy.

Senseonics Holdings (SENS) was the biggest gainer in pre-market trading as the stock rose 38.5% at the time of writing. The medical technology company announced results of the PROMISE Study that demonstrated a strong accuracy and safety profile for the Eversense CGM system for up to 180 days with reduced calibrations.

The Eversense CGM system is an implantable continuous glucose monitoring (CGM) system. The study indicated that the overall mean absolute relative difference (MARD) was between 8.5% to 9.1% over 180 days.

Pershing Square Tontine Holdings (PSTH) was the biggest laggard in pre-market trading as the stock plunged 20.4% at the time of writing. The special purpose acquisition company (SPAC) confirmed discussions with Vivendi S.E. to acquire 10% of the outstanding shares of Universal Music Group B.V. (UMG) for around $4 billion, indicating an enterprise value of €35 billion for UMG.

In earnings news, J.M. Smucker Company (SJM), a food and beverage maker reported fiscal fourth-quarter results that came in ahead of Street estimates. The company reported adjusted earnings of $1.89 per share, a decline of 26.5% year-over-year, but beating the Street’s estimates of $1.67 per share.

The company posted net sales of $1.92 billion in Q4, a decline of 3% year-on-year (excluding divestitures). Analysts were expecting net sales of $1.88 billion. Results were impacted by the pandemic.

Mark Smucker, President and CEO of the company said, “Looking ahead to fiscal year 2022, we are focused on building upon the momentum and exceptional results we delivered this year, advancing our consumer-centric growth strategy.”

Meanwhile, networking equipment and software services company Ciena Corporation (CIEN) reported fiscal Q2 results that beat Street expectations. The company reported adjusted earnings of $0.62 per share, a decline of 18.4% from the prior-year period but outpacing the Street’s estimates of $0.48 per share.

The company posted adjusted revenues of $833.9 million, down 6.7% year-over-year but topping analysts’ estimates of $829.27 million.

Gary Smith, President and CEO of the company said, “We delivered strong fiscal second-quarter results as we continued to see encouraging signs in the market environment, including improvements in customer spending. These dynamics, combined with our business and financial performance in the first half of the year, give us strong visibility and confidence in our ability to achieve our financial targets as we move through the year.”

In M&A news, global professional services company Accenture (ACN) continued its acquisition spree with the acquisition of Entropia through Accenture Interactive for an undisclosed amount. Entropia is a Kuala Lumpur-based advertising and marketing services agency. The acquisition is expected to enhance Accenture’s capabilities in varied fields including design and creative communications.

Accenture Interactive’s lead for Southeast Asia Thomas Mouritzen said, “Entropia’s addition will help us deliver innovation through technology to drive commerce and growth for our clients in Southeast Asia. It’s also an exciting chapter in our journey to strengthen and expand Accenture Interactive’s presence in the region.

In other news, technology giant Amazon (AMZN) has formed a strategic alliance with Casino Group in France that will enable Amazon to introduce new customers to the Casino Group’s expertise including the rollout of a “click and collect service” in Casino stores.

We are delighted to be working with Casino Group and to offer this new click and collect service which will enable Prime members to benefit from an even wider selection of food products. This new service will ultimately make their lives easier throughout France,” said Amazon France’s MD Frédéric Duval.

Whirlpool (WHR), a manufacturer of home appliances, has chosen Alphabet’s (GOOGL) Google Cloud as its preferred cloud platform to enhance the delivery of “critical business systems and applications” worldwide. As a part of this collaboration, Whirlpool has implemented its company-wide applications and SAP environment on Google Cloud.

Whirlpool Corp. is creating a foundation for future growth with a forward-looking, cloud-first approach to its critical SAP systems, while maintaining a strong commitment to sustainability… We’re proud to expand our strategic collaboration with Whirlpool and will continue to support the company’s digital transformation across all of its global operations,” said Google Cloud’s President Rob Enslin.

Shrilekha Pethe
Shrilekha Pethe has been extensively covering and writing about the U.S. stock market since 2015, and has been writing stock news and analysis at TipRanks since 2021. Her core competency lies in analyzing the mining, banking, oil and gas, and technology sectors and all major stocks in those financial sectors. Shrilekha has also worked as an equity research analyst for a bulge-bracket client in investment banking, Credit Suisse, performing financial analysis of companies in the area of technology, media, and telecommunications. A postgraduate in finance from ICFAI Business School, Pune, the analyst-turned-writer is currently on her way to becoming a Certified Financial Planner. Shrilekha has also written for Kiplinger, a subsidiary of Future plc., which publishes research related to stocks, business forecasts and personal finance.