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

U.S. stock futures were trending higher on Monday as oil prices slipped on hopes of progress on Russian-Ukraine peace talks. However, caution remains as fighting between the two countries continues.

Dow futures (DJIA) were up 1.12%, S&P futures (SPX) were up 0.90%, and Nasdaq futures (NDX) were up 0.58% at the time of writing.

Investors are expecting the U.S. Federal Reserve to raise interest rates by 25 basis points at its policy meeting on Wednesday. The FED is under immense pressure to hike interest rates to try and combat inflation, which has spiked to 40-year highs.

Upcoming Earnings

Abcam (ABCM), Ceco Environmental (CECE), Luna Innovations Inc. (LUNA) are set to report their quarterly results before the market opens. Logan Ridge Finance (LRFC), Spark Networks Plc. (LOV), and Westport Fuel Systems (WPRT) will report after the bell.

Market News

In M&A news, Discovery Inc. (DISCA) is closing in on the acquisition of WarnerMedia from AT&T (T). The Company’s stockholders have approved proposals related to the purchase. Consequently, the transaction is expected to close in the second quarter of 2022, resulting in the creation of Warner Bros Discovery, Inc.

SAP AG (SAP) is considering increasing its fees for partners that use its software products. Bloomberg reports that the company has opened discussions to renegotiate royalty fees. The company is looking to generate more revenues from its partnerships. The plan to increase royalty fees is part of the German company’s revamp plan, which also seeks to make it easier for software vendors to access its expansive line of tools.

Applied Materials, Inc. (AMAT) has announced an 8.3% increase of its quarterly dividend to $0.26 a share. The new dividend is to be paid on June 16, 2022, to shareholders of record as of May 26, 2022. Its annual dividend has increased to $3.12 a share, reflecting a dividend yield of 2.5%. The company’s board of directors has also approved a new $6 billion share repurchase program.

Shares of Inspired Entertainment (INSE) jumped 11.6% after the company delivered mixed fourth-quarter results. Revenue in the quarter rose 71% year-over-year to $67 million, beating consensus estimates of $61.67 million. However, the company posted a loss of $0.05 a share, falling short of expected earnings of $0.05 a share.

Exela Technologies, Inc. (XELA) shares fell 32.7% after the business process automation company delivered disappointing results for the fourth quarter ended December 31, 2021. Quarterly revenues fell 6.3% year-over-year to $294.3 million, missing consensus estimates of $296.2 million. The company also posted a loss per share of $0.34, wider than the expected loss of $0.09 a share.

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