| Wednesday was a mixed day for US benchmarks. The Nasdaq soldoff for a 2.0% loss after disappointing earnings from Google and Microsoft in Tuesday's after-hours session. The S&P 500 fell 0.7%, and the Dow closed with a fractional gain of less than 0.1%. The small-cap Russell 2K index was a top performer with a 0.4% gain. Today, futures are fluctuating ahead of some key economic data set to come out in today's premarket. S&P 500 contracts are currently showing a small fractional gain of less than 0.1%, and DJIA futures are up 0.5%. This "side income" is 100% recession proof (and beginner-friendly) https://dorktra.de/nAfi4P Have you seen the price of gas lately? It's only getting worse. Here's why it doesn't matterΓ’ΒΒ¦even if gas goes up to $10 / gallon. Because there's now a new way to make $500-$2,000 per day created by Scott Phillips. He agreed to reveal everything with two stipulations: Only 100 people will be allowed to attend, and there will be NO recording. So if you want a way to make $500-$2k a day without learning a new complicated skill, then head to the page below: See how Scott makes $2,000k+ a day with his "side hustle" Big Tech Earnings Disappoint: Microsoft and Google posted disappointing earnings results after Tuesday's closing bell, sparking declines in US benchmarks. ServiceNow [NOW] - Last Close: $366.41 ServiceNow is making a big move on a strong quarterly earnings report. The cloud services stock reported stronger than expected earnings and raised its subscription revenue growth outlook for 2022. ServiceNow generated earnings of $1.96 per diluted share to beat the Street's target of $1.85. Revenues of $1.83 billion just missed analysts' $1.85 billion estimate. ServiceNow also reported that subscription revenues rose by 29% on a non-GAAP basis in the quarter, and raised its Q4 outlook on the heels of the strong quarter. NOW is the #1 S&P 500 stock in today's premarket with a 14.7% gain. My Take: Could this be a pivot point for NOW? Shares are down nearly 50% over the past year, but NOW's strong quarterly report could help the company reverse course. However, it's still expensive with a 370.27 P/E ratio. Altra Industrial Motion Corp [AIMC] - Last Close: $40.25 Altra Industrial is skyrocketing on major M&A news. The mechanical component manufacturer announced today that it has agreed to be acquired by Regal Rexnord Corp. in an all-cash deal worth $5.0 billion. Under the terms of the deal, AIMC shareholders will receive $62 in cash for each share of common stock in their possession, a 54% premium to the stock's Wednesday closing price. Altra's board has approved the deal, and the acquisition is expected to close in the first half of 2023, subject to shareholder approval and customary closing conditions. When the deal closes, Altra shares will no longer be available on public markets. AIMC is one of the morning's top performers with a 48.3% gain. My Take: As is usually the case with these buyout rallies, upside is limited now that share prices have run up to around $60 apiece. Hard to justify holding a stock and hoping for a merger for a tiny gain like that. At this point, the train has more or less left the station. AgroFresh Solutions [AGFS] - Last Close: $1.57 AgroFresh is soaring after a regulatory filing that captured the market's attention. The agricultural services stock jumped after a Form 8-K filing revealed the company is attempting to put together a lucrative buyout deal. According to the filing, a special committee formed to explore sales and strategic alternatives for AgroFresh has found a potential buyer in Paine Schwartz. Under the terms of the proposal, Paine Schwartz would acquire all outstanding shares of the company for $3 apiece, representing a 91% premium to AGFS Wednesday closing price. The two companies haven't reached a definitive agreement yet, but the report is getting a warm reception among investors. AGFS is up 45.2% on elevated premarket trading volume. My Take: This buyout deal isn't certain yet, so there's still some upside left in this trade if the deal goes through. Right now, shares are at about $2.30, so there could still be a 30% upside from this price point if the deal goes through. However, be aware that share prices could plummet if the deal falls through. Kazia Therapeutics [KZIA] - Last Close: $1.015 Kazia Therapeutics is moving higher on upbeat drug data. The oncology-focused biotech announced preclinical data that showed its paxalisib monotherapy is active against a range of metastatic melanoma cancers. The research collaboration with the huntsman Cancer Institute at the University of Utah showed paxalisib showed substantial activity as a monotherapy and was even more active when combined with certain inhibitors. "This is among the most promising single agent data that we have seen in our research," commented Professor Sheri Holmen, lead investigator on the project. News of the promising preclinical research is boosting shares of KZIA. It's up 21.1% ahead of today's opening bell. My Take: This is very preliminary drug data, so I would proceed with caution here. Biotech stocks are notoriously volatile, and there's no telling if this therapy will make it to market yet. |
