- Futures dip as focus turns to retail earnings
- Discovery Inc. shares popped in premarket trading on a deal tomergemedia assets with AT&T Inc.
U.S. equity futures slipped with most stocks on Monday as investors weighed risks to the outlook including inflation and a spike in Covid-19 cases in parts of the world.Investors shifting their focus to retail earnings this week for clues on the strength of consumer spending.
At 8:10 a.m. ET, Dow e-minis were down 167 points, or 0.49%, S&P 500 e-minis were down 19.25 points, or 0.46%, and Nasdaq 100 e-minis were down 76.50 points, or 0.57%.
Treasuries were little changed while gold climbed to thehighestin more than three months. Bitcoin steadied after Elon Musk said Tesla Inc. hasn’t sold from its holdings of the token.
Shares of Discovery Inc jumped 12% in premarket trading after news reports said U.S. telecoms giant AT&T Inc is nearing a deal to combine its media assets, including CNN and HBO, with the company. AT&T shares gained 3%.
Stocks making the biggest moves in the premarket:
AT&T (T),Discovery (DISCA) – AT&T and Discovery announced a deal to combine Discovery with AT&T's WarnerMedia unit. The combination would be co-owned by current shareholders of both companies, and would create a new stronger streaming video challenger to the likes of Netflix (NFLX) and Walt Disney (DIS). AT&T jumped 3% in the premarket and Discovery shares surged 12%.
Tesla (TSLA) – Tesla CEO Elon Musk said the company has not sold any bitcoin after such speculation was fueled by Tesla's decision to stop taking bitcoin for automobile purchases. Tesla fell 2.1% in premarket trading.
ViacomCBS (VIAC) – ViacomCBS resolved a dispute with former CEO Les Moonves, and will keep the $120 million in severance it had withheld after Moonves resigned amid accusations of sexual harassment which he has denied. Viacom shares rallied 2.5% in premarket trading.
Hostess Brands (TWNK) – The maker of Twinkies and other snacks reported quarterly profit of 20 cents per share, a penny a share above estimates. Revenue also topped Wall Street forecasts. Hostess said it continues to see elevated at-home consumption of its snacks, as well as increased "on-the-go" sales.
At Home Group (HOME) – At Home Group's largest shareholder said it will oppose the deal to sell the home furnishings retailer to private-equity firm Hellman & Friedman for $2.4 billion. CAS Investment Partners, which owns about 17% of At Home Group, made its objections in a letter to the company's board of directors that was seen by The Wall Street Journal. CAS feels the bid "grossly undervalues" the company.
Marathon Petroleum (MPC) – Top Federal Trade Commission officials say Marathon Petroleum's sale of Speedway gas stations to the parent of the 7-11 chain may be illegal on competitive grounds. The $21 billion deal closed on Friday, but the officials say they will continue to investigate. Separately, Marathon announced a modified Dutch auction tender offer for up to $4 billion of its common shares.
MicroStrategy (MSTR) – MicroStrategy tumbled 5.6% in premarket action amid a slide in the price of bitcoin to the lowest level in more than three months. The business analytics company holds roughly $5 billion worth of bitcoin. The cryptocurrency’s volatility is also impacting shares of Coinbase (COIN), the largest U.S. cryptocurrency exchange, which fell 3.5%.
Texas Roadhouse (TXRH) – The restaurant chain’s shares rose 1% in the premarket after Deutsche Bank upgraded the stock to “buy” from “hold.” Deutsche Bank said recent trends point to the possibility that current revenue assumptions may be conservative, and it also points to the recent pullback in the stock’s price.
Sanofi (SNY),GlaxoSmithKline (GSK) – Sanofi and Glaxo said their experimental Covid-19 vaccine showed strong results in an early-stage study, with 95% to 100% efficacy. The drug companies plan to begin a phase 3 trial within a few weeks.
Blackstone (BX) – Blackstone’s improved $6.5 billion bid for Crown Resorts was rejected by the Australian casino operator, which said the bid undervalued the company and was not in the best interests of shareholders.
Cummins (CMI) – The maker of engines and other power solutions saw its stock rise 1% in the premarket after Bank of America Securities upgraded it to “buy” from “neutral,” saying it sees continued outperformance ahead amid an upbeat market for farm machinery and equipment rental.
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