The markets are set for a flat start this morning. On one hand, investors are looking forward to the entry of a COVID-19 vaccine, which could help rejuvenate the economy. Even before the vaccine comes, the markets are projecting an end to the lockdowns that have now become a part and parcel of life. However, there are concerns about a delay in a stimulus package deal between democrats and republicans.
Yesterday, Treasury Secretary Steven Mnuchin stated that the White House would not relent in its push for the $1 trillion package that has been offered by republicans. The market will also be waiting for data from the Labor Department on weekly insurance claims for unemployment.
The data is expected to paint the picture of a weakened economy, with the expectation that an additional 1.1 million Americans filed for unemployment claims last week. If these numbers come out worse, they could see the market flat-line or drop in Thursday’s session. Despite this mixed sentiment, there are stocks that are showing strong upside momentum this morning. Some of the top performers pre-market are:
NTN Buzztime Inc. [NYSE: NTN]
NTN Buzztime is a top performer this morning and is up by over 70% pre-market. This follows the company’s announcement that it had entered into a merger agreement with ImmunoTherapeutics LLC. The company stated that if shareholders approve the deal, Brooklyn will merge with a company that is wholly-owned by NTN Buzztime and that deal will be all-stock.
If it is approved, the deal will be closed in Q4 of 2020. Commenting on the deal, NTN CEO Allen Wolff said that it was an indication of the company’s commitment to continually give value to shareholders. He added that the company was open to the idea of selling assets to facilitate the combined entity thrive. Commenting on the deal, Brooklyn CEO Ron Guido stated that the merger offered them an opportunity to have the company trade publicly and gain exposure to a wider number of investors. This deal could see the value of this stock rise in the day as the news filter into the market.
Fat Brands Inc. [NASDAQ: FAT]
Fat Brands Inc. is another top performer this afternoon and is up by over 200%. This follows news that the company had agreed to buy Johnny Rockets, a restaurant chain for $25 million. The company has stated that it is funding the deal in cash and from money in its securitization facility. The deal is expected to conclude next month. Given the potential revenues that the company could make, Fat Brands could end the day as a top performer.
Sundial Growers Inc. [NASDAQ: SNDL]
Sundial Growers Inc. is in the green pre-market and is up b 20%. This comes as investors await the company’s Q2 results at markets close. The strong momentum could be an indicator that investors expect the company to outperform projections. It will an interesting stock to watch in the day.