Rocket, Oscar Health, Marvell and Lyft – 5 Things You Must Know Wednesday

Rocket, Oscar Health, Marvell and Lyft – 5 Things You Must Know Wednesday

Stock futures point to a rebound for Wall Street on Wednesday; Rocket adds to Tuesday’s surge; Oscar Health raises $1.4 billion in IPO; Marvell reports earnings.

Here are five things you must know for Wednesday, March 3:

1. — Stock Futures Point to a Wall Street Rebound

Stock futures pointed to a rebound for Wall Street on Wednesday, with tech stocks, which have faced questions about valuations, leading the gains.

Contracts linked to the Dow Jones Industrial Average rose 228 points, S&P 500 futures gained 25 points and Nasdaq futures were up 93 points.

With fears of higher interest rates front and center, investors have been questioning how much they’re willing to pay for equities, particularly high-flying tech stocks.

Despite the bond market stabilizing following a surge in Treasury yields last week, Wall Street remains concerned about longer-term borrowing costs.

Benchmark Treasury yields traded at 1.441% on Wednesday. They jumped last week to one-year highs, spurred by concerns that inflation would rise as the economy recovered from the coronavirus pandemic.

Stocks finished lower Tuesday and the S&P 500 failed to extend a rally following its best trading session since June.

2. — Wednesday’s Calendar: Marvell Earnings, ADP Employment Report

Earnings reports are expected Wednesday from Dollar Tree  (DLTR) – Get Report, Marvell Technology  (MRVL) – Get Report, Snowflake  (SNOW) – Get Report, Splunk  (SPLK) – Get Report, Vroom  (VRM) – Get Report, American Eagle Outfitters  (AEO) – Get Report, National Beverage  (FIZZ) – Get Report, Wendy’s  (WEN) – Get Report and Okta  (OKTA) – Get Report.

Marvell is a holding in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells MRVL? Learn more now. 

The economic calendar for Wednesday includes the ADP Employment Report for February at 8:15 a.m. ET, the PMI Composite (Final) for February at 9:45 a.m., the ISM Services Index for February at 10 a.m., Oil Inventories for the week ended Feb. 26 at 10:30 a.m. and the Federal Reserve’s “Beige Book” at 2 p.m.

3. — Rocket Adds to Tuesday’s Surge

Shares of Rocket Cos.  (RKT) – Get Report rose more than 7% in premarket trading Wednesday, adding to Tuesday’s gains of 71%, after getting a boost from falling interest rates and a strong earnings report, and attention from retail investors. 

Like GameStop  (GME) – Get Report and AMC Entertainment  (AMC) – Get Report before it, Rocket, the parent of Quicken Loans and Rocket Mortgage, has become a target on Reddit’s WallStreetBets forum because of its high short interest. The company reportedly has large short bets placed against it by hedge funds.

“Rocket Mortgage-why was 38% of this company sold short?” TheStreet’s Jim Cramer said in a tweet on Tuesday. “It’s a really solid company, may not be your fave if rates soar, but it is so well run!”

Rocket last week reported fourth-quarter earnings and revenue that topped analysts’ expectations. The company completed a year of record mortgage volume and said it would pay a special dividend of $1.11 a share.

4. — Oscar Health Raises $1.4 Billion in IPO

The initial public offering for Oscar Health  (OSCR) – Get Report was priced at $39 a share, raising $1.4 billion for the New York digital health-insurance company.

The target price range on the sale of 31 million shares was raised to between $36 and $38 a share on Tuesday, up from its previous estimate of $32 to $34 a share. 

The IPO values Oscar Health, which is backed by Google parent Alphabet  (GOOGL) – Get Report, at $7.7 billion. 

Oscar Health was founded in 2012 by CEO Mario Schlosser, Kevin Nazemi and Joshua Kushner, the younger brother of Jared Kushner, the son-in-law of former President Donald Trump. 

The stock will begin trading Wednesday on the New York Stock Exchange under symbol “OSCR.”

5. — Lyft Has Its Best Week Since Last March

Lyft  (LYFT) – Get Report said ridership in the last week in February was its best week in nearly a year and the company forecast a narrower adjusted Ebitda loss for the current quarter than previously projected.

The ride-sharing company said February monthly average daily rides rose 4% from January.

Lyft said it now sees a first-quarter adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) loss of $135 million, narrower than previous expectations of a loss of $145 million to $150 million. 

Lyft tied the improved outlook to “reduced operating expenses and to contribution margin, which is expected to be at the top end of the previously provided range.”

The stock rose 5.15% to $60 in premarket trading Wednesday.

Provided by: The Street Retirement

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