U.S. stock index futures edged higher on Monday ahead of monthly consumer inflation data, while investors braced for the Federal Reserve meeting later this week.
Market Snapshot
At 7:46 a.m. ET, Dow e-minis were up 62 points, or 0.18%, S&P 500 e-minis were up 11 points, or 0.28%, and Nasdaq 100 e-minis were up 30.25 points, or 0.26%.
Pre-Market Movers
Horizon Therapeutics(HZNP) – The drugmaker’s shares surged 14.7% in the premarket afterit agreed to be boughtbyAmgen(AMGN) for $116.50 per share in cash, with the deal valued at $27.8 billion. Amgen shares fell 2.6%.
Coupa Software(COUP) – Private-equity firm Thoma Bravo agreed to buy Coupa, a specialist in business spending management software. The deal is worth $8 billion, or $81 per share in cash. Coupa shares soared 21.6% in premarket trading.
Rivian(RIVN) – The electric vehicle makerhas paused talks with Mercedes-Benzon a planned joint venture to build electric vans in Europe. The move is part of Rivian’s effort to be more conservative with its cash outlays in the face of higher interest rates and economic concerns. Rivian fell 2.5% in premarket action.
Weber(WEBR) – The maker of grills and other outdoor cooking products agreed to be taken private by BDT Capital Partners for $2.32 billion in cash, or $8.05 per share. Weber shares closed Friday at $6.50.
Accenture(ACN) – Accenture fell 1.7% in the premarket after Piper Sandler downgraded the consulting firm’s stock to “underweight” from “neutral.” The firm expects Accenture to be negatively impacted by more cautious 2023 spending in the tech sector.
Under Armour(UAA) – Under Armour jumped 2.8% in premarket trading following a Stifel upgrade to “buy” from “hold.” Stifel praised the athletic apparel maker’s inventory management, which it said gives the company better profit margin certainty.
Best Buy(BBY) – The electronics retailer’s stock added 1.6% in the premarket after Goldman Sachs upgraded it to “neutral” from “sell.” It’s among retail stocks that Goldman feels has the ability to maintain prices as inflation moderates and to gain market share.
Gap(GPS),Tapestry(TPR),Levi Strauss(LEVI) – Goldman Sachs upgraded Gap and Tapestry to “buy” from “neutral” while downgraded Levi Strauss to “neutral” from “buy.” Goldman said its moves were based on which companies can thrive in an atmosphere that will see consumers become more discerning with their apparel spending. Gap added 2.7% in the premarket, with Tapestry up 2% and Levi Strauss losing 1.2%.
Brinker International(EAT) – The restaurant operator’s stock slid 3.7% after Goldman downgraded it to “sell” from “neutral.” Goldman said it was cautiously optimistic about the long-term results of the company’s effort to turn around its Chili’s chain, but thinks 2023 will be choppy in terms of sales and profit margins.
Market News
Thoma Bravo to Buy Coupa Software for $6.15 Billion
Private equity firm Thoma Bravo will buy Coupa Software Inc for $6.15 billion in cash, the business software maker said on Monday.
Thoma Bravo will pay $81 per share for Coupa, representing a premium of 30.5% to the stock's closing level on Friday. The price tag was 77.2% higher than the closing price on Nov. 22, when investors' interest in the company was first reported.
Amgen Agrees to Deal to Buy Horizon Therapeutics
Amgen Inc. has agreed to acquire Horizon Therapeutics PLC in an all-cash deal valued at $27.8 billion, marking the largest healthcare merger of the year.
Under the terms of the deal, which was first reported by The Wall Street Journal, Amgen will pay $116.50 for each Horizon share owned. The offer was equal to a premium of 19.7% over the stock’s closing price Friday at $97.29.
Rivian Pauses JV Plans With Mercedes-Benz to Make Electric Vans in Europe
Rivian Automotive Inc said on Monday it is pausing its joint venture with Mercedes-Benz Vans, just three months after the companies entered a partnership to make electric vans in Europe.
The electric vehicle maker said it will focus on its consumer and existing commercial business as it tries to become cash flow positive in its U.S. operations.
Microsoft to Buy About 4% Stake in LSEG As Part of Partnership
London Stock Exchange Group has launched a 10-year partnership with Microsoft that will see the U.S. tech giant buy an about 4% equity stake in the British company.
Microsoft will buy LSEG shares from the Blackstone/Thomson Reuters Consortium, the bourse operator said on Monday.