Stock Futures Decline as Wall Street Faces Weekly Loss

Stock futures declined on Monday following a weekly loss for Wall Street. Investors are now shifting their focus towards U.S. inflation data and the beginning of earnings season.

Boeing Slumps as FAA Grounds MAX 9 Planes

Boeing experienced a sharp decline of 7.8% after the Federal Aviation Administration (FAA) ordered the temporary grounding of 171 Boeing 737 MAX 9 planes. This decision came after an Alaska Airlines MAX 9 lost a section of its fuselage midair on Friday evening. In response, other airlines such as Alaska and United Airlines announced the grounding of their MAX 9 jets as well. Boeing expressed its support for the FAA’s decision and agreed to immediate inspections of the affected aircraft. As a result, Alaska Air fell 6% and United was down 2.7%.

Apple’s Losing Streak Continues

Apple continued its losing streak in 2024, resulting in four consecutive sessions of decline. Overall, the company’s stock has experienced a decline of 5.9% this year. The New York Times reported that the Justice Department is in the “late stages” of investigating Apple and may file an antitrust case in the first half of the year. Specifically, the investigation focuses on Apple’s strategies for protecting its iPhone business. In premarket trading, Apple fell 0.5%.

Tesla Faces Allegations of Illegal Drug Use by CEO Elon Musk

Merck in Discussions to Acquire Harpoon Therapeutics

Merck is reportedly in advanced talks to acquire Harpoon Therapeutics, a cancer drugmaker, for approximately $700 million according to Bloomberg. The potential deal would see Merck paying around $23 per share for Harpoon Therapeutics. As a result of these talks, Harpoon Therapeutics’ shares surged by 107% to $21.98 in premarket trading. Merck, on the other hand, experienced a slight decrease of 0.2%.

Synopsys in Exclusive Talks for Ansys Acquisition

In another acquisition discussion, Synopsys is currently engaged in advanced negotiations to acquire Ansys for about $35 billion. The deal would involve a combination of stock and cash. Synopsys has expressed interest in paying approximately $400 per share for Ansys. Both design-software companies are exclusively negotiating the terms of the potential acquisition. As of now, Ansys closed at $344.08 on Friday and experienced a 0.5% increase in premarket trading, while Synopsys shares remained relatively stable.

Southwestern Energy and Chesapeake Energy Nearing Merger Announcement

The Wall Street Journal has reported that Southwestern Energy and Chesapeake Energy are on the verge of announcing their merger, citing sources familiar with the situation. The merger is expected to occur as early as this week and could result in the creation of a combined company worth approximately $17 billion. This merged entity would rank among the largest natural-gas producers in the United States. In premarket trading, Southwestern Energy saw a 1.8% increase, while Chesapeake Energy experienced a 3.5% decrease.

AMC Entertainment Continues Losing Streak

AMC Entertainment’s losing streak extended to five days on Friday, marking its longest decline since August 29, 2023, when it experienced a seven-day slide. The movie-theater chain closed at a record low of $5.17 per share. However, there was a slight rebound in premarket trading as AMC rose by 1% to $5.22.

Upcoming Earnings Reports

Next week, several companies are set to release their earnings reports. On Monday, Jefferies Financial Group, Commercial Metals, and Helen of Troy are expected to announce their latest financial results. However, the highlight of the week will be on Friday when major U.S. banks such as JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Bank of New York, and BlackRock will issue their quarterly reports. Additionally, UnitedHealth and Delta Air Lines are also expected to release their reports on the same day.