Stock futures traded lower Tuesday after the
S&P 500
declined last week, putting an end to a five-week winning streak, following two reports on inflation that were hotter than expected.
These stocks were set to make moves Tuesday:
Discover Financial
was rising 14% to $126.16 after it reached a deal to be acquired by
Capital One Financial
for more than $35 billion. Under terms of the all-stock deal, Discover shareholders will receive 1.0192 Capital One shares for each Discover share, representing a premium of about 27% to Discover’s closing price on Friday of $110.49. The transaction will create the largest U.S. credit card company by loan volume. Capital One shares fell 3.9% in premarket trading.
JetBlue Airways
was rising 2% after activist investor Carl Icahn won two seats on the carrier’s board.
Icahn
early last week disclosed a nearly 10% stake in JetBlue.
U.S.-listed shares of
Barclays
were rising 6.2% after the British lender said it plans to return at least £10 billion ($12.6 billion) to shareholders between 2024 and 2026 through dividends and stock buybacks and would undergo a three-year reorganization.
Earnings reports are expected Tuesday from
Walmart,
Home Depot,
Palo Alto Networks,
Medtronic,
Caesars Entertainment,
Diamondback Energy,
and
Keysight Technologies.
Walmart
was up 0.4% ahead of its report scheduled for before the opening bell Tuesday. Analysts expect the world’s largest retailer to report fourth-quarter adjusted earnings of $1.64 a share, with sales projected to rise 4% to $170.9 billion. The company has met or beaten Wall Street’s expectations for the past six quarters.
Shares of
Home Depot
were down 0.5%. The home-improvement retailer is expected by Wall Street to post a revenue decline in the fourth quarter of 3% to $34.6 billion. Fiscal-year revenue also is expected to fall the same amount. It would mark Home Depot’s first annual sales drop since 2009.
Later in the week reports are scheduled from
Nvidia,
Analog Devices,
Rivian Automotive,
Intuit,
Booking Holdings,
Block,
Moderna,
Warner Bros. Discovery,
and
Berkshire Hathaway.
Nvidia’s
highly anticipated fourth-quarter earnings report is scheduled for after the close of trading on Wednesday. Sales are expected to more than triple from the prior year to greater than $20 billion, getting a boost from Nvidia’s dominance in supplying the chips used to train artificial-intelligence systems. The stock was down 0.7% in premarket trading.
Write to Joe Woelfel at [email protected]
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