U.S. stock index futures fell on Monday, signaling a fresh round of selloff on Wall Street as fears over China's COVID-19 spooked investors already concerned about aggressive U.S. interest rate hikes.
U.S.-listed Chinese shares like JD.com Inc , Alibaba Group Holdings Ltd and Baidu Inc declined between 2.3% and 3.7% in premarket trading.
Market Snapshot
At 08:17 a.m. ET, Dow e-minis were down 239 points, or 0.71%, S&P 500 e-minis were down 36 points, or 0.84%, and Nasdaq 100 e-minis were down 122.75 points, or 0.92%.
Pre-Market Movers
Twitter, Tesla — Twitter ticked 5% higher on reports that the social media giant is close to a deal with Elon Musk. It comes a day after the company’s board reportedly met Sunday to discuss a takeover bid from Elon Musk, who has already secured $46.5 billion in financing. While Tesla shares fell more than 3% in premarket trading.
Coca-Cola — Shares of Coca-Cola rose about 1% after the company beat analysts’ expectations on the top and bottom lines in the recent quarter. The beverage giant reported adjusted earnings of 64 cents per share on revenues of $10.5 billion, while analysts expected 58 cents per share on $9.83 billion in revenue.
Oil stocks —Shares of energy companies fell on Monday as oil prices fell on fears of a global slowdown amid COVID-19 lockdowns.Chevron, ConocoPhillips, and Marathon Oil dipped 2.2%, 2.6% and 2.8% respectively.
Verizon — Verizon shares fell 1% after Goldman Sachs downgraded the stock to neutral. The bank said Verizon is situated well for 5G growth but offers a lower potential return compared to peers like AT&T.
Penn National Gaming — The gaming stock rose 2.8% after Morgan Stanley named it a buy despite its recent underperformance. The bank also sees opportunities in its Barstool Sports and theScore businesses.
Warner Bros. Discovery — Warner Bros. Discovery’s stock fell 2.5% as investorscontinued to digest the newsthat the company would shutter its CNN+ service weeks after its launch.
Deere — The equipment manufacturer’s stock fell 3.4% after Bank of America downgraded the stock to neutral. The bank said it remains cautious on the farm economy and agricultural equipment space amid ongoing supply chain issues and other macro trends.
Kellogg — Shares of Kellogg dipped 1.8% after Deutsche Bank downgraded the stock to a hold. The bank cited the impact from workers’ strikes, rising inflation and supply chain disruptions among the reasons for the downgrade.
Market News
Twitter Inc is nearing a deal to sell itself to Elon Musk for $54.20 per share in cash, the price that he originally offered to the social media company and called his 'best and final', people familiar with the matter said.
Twitter may announce the $43 billion deal later on Monday once its board has met to recommend the transaction to Twitter shareholders, the sources said. It is always possible that the deal collapses at the last minute, the sources added.
Coca-Cola on Monday reported quarterly earnings and revenue that topped analysts' expectations. Coke's unit case volume rose 8% during the quarter, fueled by demand for drinks like Powerade and Coke Zero Sugar.
Despite the suspension of its Russian business, the company reiterated its full-year outlook for organic revenue and comparable earnings per share growth.
SpaceX will start providing wireless internet on Hawaiian Airlines flights from the Starlink satellite network as early as next year, a service the airline told CNBC it plans to offer to passengers for free.
The deal marks the first for Elon Musk's space company with a major airline. Starlink is SpaceX's network of about 2,000 satellites in low Earth orbit, designed to deliver high-speed internet to consumers and businesses anywhere on the planet.