Wall Street rises with mergers and acquisitions

Wall Street is recovering on Monday. The S & P 500 rose from 1.13% to 3,945 points and the Dow Jones rose from 1.52% to 31,736 points. Nasdaq rose 0.44% to 11,404 points. Markets that have been squeezed in recent weeks by fears of an economic slowdown in the context of accelerating interest rate hikes and record inflation are benefiting today, especially from rumors of mergers and acquisitions involving Electronic Arts and VMware. At Nymex, a barrel of WTI crude fell 0.6% to $ 109.6. One ounce of gold rose 0.6% to $ 1,854. The dollar index fell 0.9% against a basket of currencies. Bitcoin stabilizes at $ 30,000.

Therefore, in the oversold situation, despite the decline in market sentiment, traders selectively chase the possible “bargains” and attempt technical jumps again. Joe Biden is reviewing the tariffs imposed on China. This could be another supportive factor, such as the reopening of Shanghai. Therefore, Biden has indicated that he is considering raising certain tariffs on China in order to mitigate inflation. However, US executives remain disagreeable on this issue. Meanwhile, the reopening of Shanghai is due to the return of the Covid Case to its lowest price in two months. Regarding the ECB, Christine Lagarde said banks are probably in a good position to get out of negative interest rates by the end of the third quarter. Finally, note that Germany’s Ifo, which measures business confidence, improved unexpectedly in May.

In geopolitical news, Ukraine again ruled out a ceasefire, including abandoning territory to Russia.

In April 2022, the Fed’s US National Activity Index was 0.47, while FactSet’s consensus was 0.5. According to the revised reading, the March indicator was 0.36. Keep in mind that a positive index is higher than normal growth.

Today, Zoom Video, Nordson and Advance Auto Parts are releasing their latest quarterly report on Wall Street.

value

Tesla plans to return production at its Shanghai plant to pre-blocking levels in the city by Tuesday, a day behind recent stimulus measures, according to internal notes recognized by Reuters. is. Tesla plans to produce more than double the number of electric vehicles a day at its Shanghai plant from Tuesday to 2,600, according to a memo detailing the plan. According to the memo, this is about 16,000 Tesla’s weekly production compared to about 1,000 electric cars produced on Monday. Since March, Tesla in Shanghai has faced problems caused by strict restrictions on the movement of people and goods to curb the spread of Covid-19, so the challenge was to bring production back to pre-blocking levels. Just two weeks ago, Tesla planned to return to pre-lockdown production levels by May 16, but then delayed that goal by a week.

The Wall Street Journal understands that Apple (+ 2%) is aiming to increase production outside of China. Participants in the meeting said to WSJ, California-based Cupertino to some manufacturers, and Apple considering increasing production in other countries, such as due to China’s very strict anti-Covid policy. He said he said. India and Vietnam.

VMware surged 19% on Wall Street (-4%) on rumors of a possible acquisition of Broadcom. According to The Wall Street Journal, Broadcom will certainly offer cash and stock offers for the acquisition of cloud computing specialist VMware. Broadcom has a capital of nearly $ 220 billion and VMware has a capital of $ 40 billion. The WSJ hasn’t mentioned the price for this expected offer and hasn’t reached an agreement yet. Bloomberg’s agency confirms that Broadcom will discuss with VMware, citing sources familiar with the matter.

According to a site specializing in technology engadgets, American video game giant Electronic Arts (+ 2%) is actively seeking sales or mergers. Citing news site Puck, following some vague reports yesterday, Engadget reports that Electronic Arts is actively looking for buyers or other companies to merge with it. EA has reportedly negotiated with many potential buyers and partners, including Walt Disney, Apple and Amazon. According to Puck, in the case of a merger, EA would prefer a deal in which Andrew Wilson remains the CEO of the merged company. According to one source, EA approached Disney in March with the goal of building a “more meaningful relationship” beyond the license agreement. Disney has decided not to move forward in this matter.

Pfizer (+ 2%) and its partner BioNTech (+ 1%) announced on Monday that a vaccine against Covid-19 will provide a strong immune response, high efficacy, and high efficacy in children aged 6 months to 5 years. Announced that it showed good safety data. dose. The third dose was well tolerated in 1,678 children under 5 years of age. The two partners evoked 80.3% vaccine efficacy during the predominant period of the Omicron variant. The dose is one tenth of the adult dose. “Our Covid-19 vaccine has been studied in thousands of children and adolescents. The youngest child’s formulation, which we carefully selected as a one-tenth dose for adults, is sufficient. We are pleased that it has been tolerated and manufactured. A strong immune response. ” Albert Bourla, Pfizer’s president and chief executive officer, said.

Twitter (-2%) continues to be monitored on Wall Street on Monday, according to sources, and the New York Post will compete if Elon Musk’s $ 44 billion acquisition on Twitter is abandoned. A whimsical millionaire reporting not preparing for a bid. Recall that in April, Tohma Bravo became interested in Twitter files and then joined forces with Musk as part of the offer. Currently, insiders say the market for debt lending for mega-buyouts has been seized and it is “almost impossible” for Bravo and other private equity companies to raise the funds needed to complete the transaction. I am.

Siga Technologies (-8%), a star in the past few days providing antiviral treatment solutions for smallpox, is being integrated along the American coast, but has been titled since the unexplained appearance of the first case of monkeypox. It’s almost doubled. Joe Biden estimated that spreads could be quite large after being detected in the United States, Canada, Australia, and 12 other countries. “That’s something everyone should worry about,” said the President of the United States. It should be remembered that “monkeypox” is endemic in about 10 countries in Africa, but its recently detected non-African presence is extremely rare. WHO warns that the incident could accelerate in Europe.

JP Morgan (+ 5%) updated its financial forecasts during the day of its presentation to investors. The bank confirmed that it is targeting a tangible return on equity of 17%, which is an achievable target earlier this year, and has revised its forecast for net interest income (excluding the market) for 2022 to $ 56 billion. ..