U.S. stocks edged slightly higher on Thursday, getting most of its positive momentum on the back of financial shares once again. The S&P 500 inched fractionally higher yesterday, as did the Dow Jones Industrial Average.
Some of the major movers in premarket trading Friday include Baxalta Inc (NYSE:BXLT), Regions Financial Corp (NYSE:RF) and SunEdison Inc (NYSE:SUNE), so investors should keep an eye on these stocks at the bell.
Here’s why:
Regions Financial Corp (RF)
Regions Financial should be on the move today after reporting a Street-beating first quarter.
RF posted earnings of 20 cents per share on revenues of $1.37 billion, up from 16 cents on $1.37 billion. Both figures just edged out Wall Street expectations.
Regions spent the quarter protecting itself from the weakened energy space, “upping its total loan loss allowance for its direct energy loan portfolio to 8% at the end of the first quarter versus 6% at the end of the quarter before,” according to the Wall Street Journal.
Other factors pushing RF’s quarter were a 4.6% improvement in lending, as well as savings from a $300 million cost-cutting plan announced in November 2015.
RF shares were up 5% in Friday’s premarket action.
SunEdison Inc (SUNE)
UPDATE: SunEdison shares flipped in premarket trading, off 20% on news that the company “was in talks for potential debtor-in-possession financing with some of its first and second-lien lenders,” according to Reuters.
SunEdison is set to shoot out of the gate once again, a day after an internal report cleared the company of fraud suspicions, sending the stock up nearly 60% on Thursday.
The celebration came after an investigation found that there was no evidence of actual fraud within the company, with no “material misstatements”; however, there still were a few black marks, such as “overly optimistic” accounting and weak cash controls.
Meanwhile, other reports showed that Finland-based Fortum was in talks with SunEdison to possibly purchase a stake in the company’s Indian projects for a sum of between $225 million to $450 million.
All this comes amid a waiting game, as many expect debt-saddled SUNE to file for Chapter 11 bankruptcy protection.
Nonetheless, the bulls clearly have the reins, as SUNE shares were set to open Friday’s trading some 25% higher.
Baxalta Inc (BXLT)
Baxalta stock plunged after Thursday’s closing as the company takes another step toward its proposed merger.
The biopharmaceutical company announced that it is holding a special shareholders meeting on May 27 to vote on whether its merger with Shire PLC (ADR) (NASDAQ:SHPG) should move forward.
The two companies are still far from a merger as both Baxalta’s or Shire’s shareholders could vote against it. Regulatory approvals are never a guarantee, and other factors could prove to be a hindrance in the proposed union.
BXLT shares were sinking 6% in Friday’s premarket trade.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
