Stock futures declined Monday and oil prices surged following Hamas’s surprise attack on Israel over the weekend. Bond markets in the U.S. were closed for Columbus Day.
These stocks were poised to make moves Monday:
Exxon Mobil
(XOM) rose 2.5%,
Chevron
(CVX) gained 2.6%,
ConocoPhillips
(COP) rose 3.2%, and U.S.-listed shares of
Shell
(SHEL) were up 1.3% after the jump in oil prices. Futures for West Texas Intermediate crude, the U.S. benchmark, were rising 4% to $86.07 a barrel. Traders were watching how the conflict affects oil production in the Middle East.
Lockheed Martin
(LMT) rose 4.6% and shares of other defense companies such as RTX Corp. (RTX), up 3.7%, and Northrop Grumman (NOC), up 3.3%, also traded higher following Israel’s war with Hamas. Separately,
Lockheed
‘s board on Friday approved the expansion of Lockheed’s stock repurchase program by $6 billion, and the company raised its quarterly dividend to $3.15 a share from $3.
Shares of
Mirati Therapeutics
(MRTX) fell 5.1% to $57.06 after the oncology developer reached an agreement to be acquired by
Bristol Myers Squibb
(BMY) for $58 a share in cash. Mirati shares closed Friday at $60.20. Under terms of the deal, valued at up to $5.8 billion, Mirati stockholders also will receive one non-tradeable contingent value right per share, potentially worth $12 a share in cash. Bristol Myers fell 1.3%.
Walt Disney
(DIS) rose 1.5%. The Wall Street Journal reported that Nelson Peltz’s Trian Fund Management was pushing for multiple seats on the board of the entertainment giant. Peltz himself will be seeking a seat, the Journal reported, citing people familiar with the matter. Trian is one of
Disney’s
largest investors with a stake worth upward of $2.5 billion. Disney shares have fallen 4.5% this year.
Arm Holdings
(ARM) was up 0.2% to $54.17 after a number of Wall Street firms initiated coverage on the stock with Buy recommendations. “Arm … is successfully leveraging its significant developer ecosystem (15 million+ software developers) and near 100% market share in smartphones to move into the automotive, industrial/IoT, and datacenter segments of the market,” wrote
J.P. Morgan
analyst Harlan Sur in a research note. The analyst began coverage on Arm with an Overweight rating and price target of $70.
SolarEdge Technologies
(SEDG) was down 3.2% in premarket trading. A Barclay analyst last week predicted continued hard times for the maker of solar inverters and downgraded the stock to Equal Weight from Overweight.
Data-center company
Applied Digital
(APLD) is scheduled to report quarterly earnings on Monday. Reports are expected later in the week from
JPMorgan Chase
(JPM),
Citigroup
(C),
Wells Fargo
(WFC),
UnitedHealth
(UNH),
PepsiCo
(PEP),
Delta Air Lines
(DAL),
Fastenal
(FAST),
Walgreens Boots Alliance
(WBA), and
Domino’s Pizza
(DPZ).
Write to Joe Woelfel at [email protected]
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