MCD stock is trading more than 4% higher ahead of the bell
Following last month's rare loss, the Dow Jones Industrial Average (DJI) seems set for an April win, with futures trading well above fair value this morning thanks to a positive earnings reaction for McDonald's (MCD). The S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also signaling a higher start, as Wall Street reacts to several M&A developments -- including the long-awaited $26.5 billion all-stock merger of Sprint (S) and T-Mobile (TMUS) -- and the latest inflation update. Ahead of this week's Fed meeting, the core personal consumption expenditures (PCE) price index surged 1.9% in March.
Continue reading for more on today's market, including:
- Analyst: This retail stock presents a "trade opportunity" ahead of earnings.
- This tech stock could see volatile trading tomorrow.
- Options volume surged as buyout buzz boosted this telecom stock.
- Plus, a $20 billion oil takeover; Walmart makes a $10 billion deal in the U.K.; and strong steel earnings.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 1.19 million call contracts traded on Friday, compared to 761,371 put contracts. The single-session equity put/call ratio rose to 0.64, while the 21-day moving average stayed at 0.65.
- Marathon Petroleum Corp (NYSE:MPC) said it would buy Texas-based oil refiner Andeavor (NYSE:ANDV) for more than $23 billion in a cash-and-stock deal. After hitting a record high of $83.27 last Thursday before settling the week at $81.43, MPC stock is down 7.9% ahead of the bell. ANDV shares, meanwhile, are up 14.4% ahead of the bell -- on track to open at a record high near $140.
- Walmart Inc (NYSE:WMT) said it is selling its U.K. unit Asda to Britain-based J Sainsbury to create a retail chain valued at roughly $10 billion -- the latest in a string of M&A deals for the big cap. WMT will get about $4 billion for the sale, and will take a 42% stake in the combined company. While Walmart stock is up 0.5% ahead of the bell, it's on track for its third straight monthly loss -- the longest streak since mid-2015.
- AK Steel Holding Corporation (NYSE:AKS) reported first-quarter earnings of 9 cents per share on $1.66 billion in revenue -- more than analysts were expecting. AKS stock is up 1.5% in pre-market trading, but remains well in the red on a year-to-date basis.
- The Chicago purchasing managers index (PMI) will be released today. Akamai Technologies (AKAM), Allergan (AGN), Arconic (ARNC), Diamond Offshore (DO), Transocean (RIG), and U.S. Concrete (USCR) will report earnings.
Asian Stocks Close Low-Volume Session Higher
Stocks in Asia finished higher today. Hong Kong's Hang Seng made a 1.7% jump, with banking stocks leading the way as they extended Friday's earnings-related gains. Optimism sparked by the inter-Korean summit sparked a 26% rally for Hyundai Engineering, which helped South Korea's Kospi shrug off a stronger won to finish 0.9% higher. Markets in Japan and China were closed for holiday.
European markets are modestly higher at midday. Consumer discretionary stocks are in focus after British grocery chains Sainsbury's and Asda announced a $20.7 billion merger, while German retail sales came in below expectations. London's FTSE 100 is up 0.4%, Germany's DAX is 0.1% higher, and France's CAC 40 has climbed a modest 0.3%, at last check.