European Equities Traded in the US as American Depositary Edge Higher in Wednesday Trading

US equity futures were flat ahead of Wednesday's opening bell as traders digested a deluge of economic data.

Dow Jones Industrial Average futures rose 0.1%, S&P 500 futures were marginally down, and Nasdaq futures fell 0.2%.

US stock markets will be closed Thursday for the Thanksgiving Day holiday, and will close early at 1 pm ET the following day.

Oil prices were higher, with front-month global benchmark North Sea Brent crude up 0.6% at $72.75 per barrel and US West Texas Intermediate crude up 0.8% at $69.28 per barrel.

The Q3 gross domestic product, released at 8:30 am ET, came in unchanged at a 2.8% growth, in line with estimates compiled by Bloomberg.

New orders for durable goods, also released at 8:30 am ET, rose by 0.2% in October versus 0.5% gain expected. Trade in goods deficit narrowed to $99.08 billion in October from $108.69 billion in the preceding month, compared with estimates for a $102.7 billion gap. Meanwhile, new unemployment claims dropped to 213,000 in the week ended Nov. 23 from 215,000 claims in the prior week, compared with estimates for 215,000 claims.

The Chicago Purchasing Managers' Index, due at 9:45 am ET, is expected to rise to 44.2 in November from 41.6 in October.

Investors will also watch for the October Personal Consumption Expenditures Core Price Index, the Federal Reserve's preferred measure of inflation, slated for a 10 am ET release, with pundits expecting a 0.3% rise. Forecasters see the Pending Home Sales Index coming in at minus 2.1% for October.

In other world markets, Japan's Nikkei closed 0.8% lower, Hong Kong's Hang Seng ended 2.3% higher, and China's Shanghai Composite finished 1.5% higher. Meanwhile, UK's FTSE 100 slipped 0.05% and Germany's DAX index fell 0.3% in Europe's early afternoon session.

In equities, Interactive Strength T shares advanced more than 37% pre-bell after the company said it received a notice from Nasdaq confirming that it regained compliance with the exchange's listing rules.

On the losing side, Grifols shares were down more than 12% following a media report that the company has decided not to entertain a new takeover bid by a third party as Brookfield Asset Management intends to drop its takeover plan.

Health care stocks rose premarket Wednesday as the Health Care Select Sector SPDR Fund advanced by 0.2% and the iShares Biotechnology ETF was recently up 0.6%.

Outlook Therapeutics shares tumbled by over 79% after the company said preliminary results from the second of two clinical trials evaluating its experimental drug ONS-5010, an opthalmic formulation of bevacizumab in wet age-related macular degeneration patients, did not meet the pre-specified non-inferiority endpoint in the special protocol assessment with the US Food and Drug Administration.

BeiGene shares were up more than 5% after the company said the European Commission has approved Tevimbra in combination with chemotherapy for the first-line treatment of esophageal squamous cell carcinoma and gastric or gastroesophageal junction adenocarcinoma.

Grifols has decided not to welcome a new takeover bid by a third party as Brookfield Asset Management intends to walk away from its plan to acquire the company, Bloomberg reported, citing the Grifols family. Grifols shares fell by over 13% premarket.

Equinor ASA EQNR has awarded a long-term subsea inspection, maintenance and repair (IMR) contract to DeepOcean, a subsea services provider based in Norway, to support its operational activities in the Norwegian Continental Shelf and other parts of Europe. The contract spans eight years, commencing in 2027 and running through 2035.

Details of the IMR Contract

Per the terms of the contract, DeepOcean will deploy a team of subsea engineers to use their knowledge and expertise in subsea operations, alongside a subsea tool pool. The team will also implement remote operations technologies for its tasks. Furthermore, DeepOcean will bring in a new vessel for the contract with EQNR, chartered from Rem Offshore.

Features of the Vessel

The newbuild vessel, named Rem Ocean, shall boast dual-fuel engines, enabling it to run on both bio-methanol and biodiesel. The vessel is equipped with a battery energy storage system and regenerative energy systems for effective utilization of energy. Rem Ocean will also boast a powerful electric crane capable of lifting up to 250 tons and two electric WROVs contained in hangars. The outside deck area in the vessel spans 1,000 square meters, while the hangar area inside the vessel is expected to have an area of 350 square meters. Rem Ocean will also feature an Autonomous Inspection Drone ("AID"). The AID provides advanced subsea asset inspection capabilities to the vessel.

DeepOcean's Commitment to Sustainable IMR Operations

The contract with Equinor marks a milestone for DeepOcean as it shall set a new industry standard for sustainable IMR operations. This long-term contract enables DeepOcean to invest its resources in the next generation of subsea services offered to Equinor.

Speaking of Rem Ocean, DeepOcean mentioned that its environmental impact will be substantially lower compared to the other IMR vessels in use. The vessel is expected to reduce emissions by 90% while operating on bio-methanol and by 30% while operating on other conventional fuels, relative to existing IMR vessels. Additionally, the vessel will also be streamlined for remote operations, reducing the need for offshore project crews.

EQNR’s Zacks Rank and Key Picks

Currently, EQNR carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Smart Sand, Inc. SND, FuelCell Energy FCEL and Nine Energy Service NINE, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained oil and gas market demand, SND is expected to see growing demand for its services, providing a positive outlook.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for NINE’s services is anticipated to increase, which should position the company for growth in the long run.

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