Stock futures sank as investors pulled out of interest rate-sensitive tech stocks. Yields on US government bonds reached their highest level in three months. Oil prices hit three-year highs. This is what we are seeing before the opening bell.
- Technology actions, including Facebook,
Apple and Amazon.com – all sensitive to the interest rate outlook because earnings are expected to grow in the future – fell more than 1% each in premarket trading.
Acceleron Pharma shares gained 2.4%. Merck is in advanced talks to buy Acceleron, according to people familiar with the matter, in a move that would bolster the pharmaceutical giant’s rare disease business. Merck shares were largely unchanged prior to trading.
Spotify Technology fell 2.1%. The music and podcast streaming company has started its first global branding campaign to woo marketers, as part of an effort to expand advertising revenue.
Devon Energy and Diamondback Energy were among the companies that received a boost from rising oil and gas prices. Crude oil has been dragged down by a broad rally in energy markets.
- Shares of chip companies, including Nvidia and Micron Technology, were ahead of the bell. Micron is due to report its earnings on Tuesday. The latest threat to semiconductor supply chains: high coal prices and efforts to curb energy consumption in China.
- Entertainment giant Endeavor Group has agreed to buy an online sports betting business from game developer Scientific Games for $ 1.2 billion in cash and stock. Scientific was up 2.5% before commercialization.
Ford Motor was up 1.9%. The automaker plans to spend $ 7 billion to build two battery factories in Kentucky and a third in western Tennessee, part of a collaboration with SK Innovation, as well as a factory to produce electric trucks.
Concentrix gained 4.6% before the bell. The business services company ‘s quarterly earnings more than doubled and revenue was up 20% from the prior year.
- Activist hedge fund Starboard Value has a stake of more than 8% in Huntsman and plans to campaign for a change at the chemical producer, The Wall Street Journal reported. Huntsman shares were up 0.9% pre-market.
Chart of the day
- This year, banks are on track to merge at a level not seen since the 2008 financial crisis. It’s a change from last year, when the economy soared and many regional and community banks left merger plans on the shelf. Now, bank executives feel more confident about what the future holds, but some find it difficult to do it themselves.
Write Joe Wallace at [email protected]
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