Editor
The stock market is buzzing with activity as Intel takeover rumors dominate headlines, and investors gear up for a holiday-shortened trading week. Stock futures are trending higher, with corporate earnings and Federal Reserve remarks in focus. Here’s what you need to know before the market opens today.
Stock Futures Rise Ahead of Shortened Trading Week
Stock futures are climbing in premarket trading, signaling a positive start to a shortened trading week. S&P 500 futures are up 0.4%, nearing an all-time high, while Nasdaq and Dow futures also show gains. Bitcoin is trading near $96,000, while gold and oil futures are up by 1%. The 10-year Treasury yield has advanced slightly, reflecting investor optimism.
Intel Stock Surges on Broadcom and TSMC Takeover Rumors
Intel takeover talks are making waves as shares jumped nearly 6% in premarket trading. Reports suggest Broadcom and Taiwan Semiconductor Manufacturing Co. (TSMC) are considering breaking up the struggling chipmaker. Broadcom is eyeing Intel’s chip-design business, while TSMC may take over its manufacturing plants. Although talks are preliminary, the news has fueled optimism, especially after Intel’s 20% surge last week.
Walmart Earnings and S&P 500’s Strong Performance
Walmart’s earnings report, due later this week, is highly anticipated as S&P 500 companies continue to outperform expectations. With over 75% of firms reporting, the earnings growth rate stands at 16.9% year-over-year, the highest in three years. This earnings season has been one of the strongest in recent history, with companies consistently beating estimates.
Constellation Brands Jumps as Berkshire Hathaway Invests
Constellation Brands, the maker of Modelo beer, saw its stock rise over 8% after Warren Buffett’s Berkshire Hathaway disclosed a new position in the company. Berkshire’s recent 13-F filing revealed the purchase of 5.6 million shares, while trimming stakes in Bank of America and exiting Ulta Beauty.
Southwest Airlines Gains on Corporate Layoffs
Southwest Airlines shares climbed over 2% after announcing plans to lay off 15% of its corporate workforce. This marks the first mass layoff in the airline’s 53-year history, as it aims to become a leaner and more agile organization. The move follows pressure from activist investor Elliott Investment Management.
Conclusion
As the stock market prepares for a shortened trading week, Intel takeover rumors and strong corporate earnings are driving investor sentiment. Keep an eye on key updates from Walmart, Constellation Brands, and Southwest Airlines as the market continues to evolve.
