By Stock futures are pointing higher on Monday, following the S&P 500’s closing at an all-time high on Friday, breaking the streak of more than 500 trading sessions without a new record. The Dow Jones Industrial Average also closed at a record.
Airlines Seek Appeal in .8 Billion Merger Case
Spirit Airlines and JetBlue Airways have announced their intention to appeal a federal judge’s decision to block their $3.8 billion merger. The airlines maintain that the merger process was in line with the requirements of the agreement. Spirit shares have seen a rise of 9.3% in premarket trading and experienced a 17% jump on Friday after the budget carrier reassured investors about its fourth-quarter revenue expectations being at the high end of its initial guidance and strong holiday period bookings.
SolarEdge Technologies Implements Workforce Reduction
SolarEdge Technologies has revealed plans to cut approximately 16% of its global workforce, which amounts to around 900 employees. The decision comes as part of cost-cutting measures to align with the rapidly changing market dynamics, according to CEO Zvi Lando. The Israel-based solar equipment maker’s stock has declined 26% this year and 77% over the past 12 months due to factors like weak revenue outlook and slumping demand. However, the announcement resulted in a 5.7% rise in the stock.
Macy’s Rejects Bid to Take the Retailer Private
Macy’s recently rejected an unsolicited bid from Arkhouse Management and Brigade Capital Management to take the department-store retailer private. Despite the $5.8 billion deal, Macy’s expressed concerns about the financing and labeled the proposal from Arkhouse and Brigade Capital as lacking compelling value. In response, Arkhouse threatened to pursue alternative measures, including directly approaching shareholders. Despite this development, Macy’s stock rose by 1.6%.
Microsoft Discloses Email Hack Involving Russian State-Backed Hackers
Microsoft announced that email accounts belonging to senior members of the company’s leadership team have been breached by hackers supported by the Russian government. As a result of this breach, the hackers were able to access and read certain email messages and attached documents. Microsoft clarified that it identified the attack as a nation-state attack on its corporate systems on January 12th. Immediately, the company initiated its response process to investigate the situation, disrupt malicious activities, mitigate the attack, and prevent further access by the threat actor. Microsoft attributed the attack to Midnight Blizzard, a Russian state-sponsored actor also known as Nobelium. Despite this incident, Microsoft’s premarket trading saw a 0.4% increase.
Upcoming Earnings Reports from Major Companies
Several major companies are expected to release their earnings reports this week. United Airlines and Logitech will announce their reports on Monday after the stock market closes. Additionally, Johnson & Johnson, Procter & Gamble, Netflix, Verizon, General Electric, Lockheed Martin, Tesla, AT&T, International Business Machines (IBM), Texas Instruments, Comcast, Visa, American Airlines, Southwest Airlines, Intel, and American Express are set to report their earnings in the following days.
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