The first trading day of this week on Wall Street closed with decent price increases, and this is in preparation for the publication of inflation data tomorrow, and the Fed’s interest rate on Wednesday. The S&P 500 rose 1.4%, the Nasdaq climbed 1.26%, and the Dow Jones gained 1.4%. The fear index (VIX) surged 9.5% ahead of a dramatic week in which market volatility is already beginning to show its signs. Goldman Economists Zacks predicts that an inflation figure in the US below 7% tomorrow may ignite a rally in the markets.
Tesla’s stock stood out with a decrease of about 6%, Apple rose by 1.4%, Amazon rose by 1.6%, Meta (Facebook) lost about 1%.
Microsoft ( MSFT ) rose 2.9% after announcing the purchase of about 4% of London Stock Exchange shares as part of a 10-year deal. The London Stock Exchange Group will spend at least $2.8 billion on Microsoft’s cloud products. Microsoft will transfer the database of the exchange and other parts of the technological infrastructure to its cloud product AZURE.
The stock of the biotech company Horizon Therapeutics (NYSE: HZNP) jumped by more than 15% against the background of its purchase by the pharmaceutical company Amgen (AMGN), in exchange for $116.5 in cash, reflecting a company value of $27 billion on a fully diluted basis.
16:30
The trading week on Wall Street opened in the green territory ahead of a dramatic week in which the inflation data will be published tomorrow, and on Wednesday the Fed will publish the interest rate in the US, when the expectation is to slow down the rate of interest rate increases to 0.5%.
The Dow Jones rises 0.35%, the Nasdaq is unchanged and the S&P 500 adds 0.1%. The fear index (VIX) jumps 7% ahead of the dramatic week loaded with significant macro data that may soon dictate Fed policy.
The stock of the biotech company Horizon Therapeutics (NYSE: HZNP) jumps by about 15% on the background of its purchase by the pharmaceutical company Amgen (AMGN) in exchange for $116.5 in cash, which reflects a company value of $27 billion fully diluted.
15:15
A trading week packed with events on Wall Street is expected to open today (Monday) with slight price increases in the leading indexes. The Fed will hold a two-day meeting this week before the interest rate announcement and the open market conference statement on Wednesday.
Market expectations are for an increase of 50 basis points. The activists will wait for the Fed Chairman’s words and for hints regarding the rate of interest rate increases at the beginning of the first quarter, which are expected to return to a rate of only 25 basis points. Even before that, tomorrow (Tuesday) the consumer price index for the month will be published November and vigilance in the markets increases, as a negative figure will affect the tone of the words of the chairman of the central bank after the interest rate decision. The market expectations are for a core index and a price index with an increase of 0.3% and a further decrease in the annual inflation rate to 7.3%.
Another thing that can cause volatility in the markets is the expiration of the quarterly futures contracts on the indices this Friday at the opening of trading. Although the contracts have already started in the last two weeks, in most cases there is still volatility for the beginning and towards the end of the week.
In Europe, the weather is stormy, especially in Great Britain, with quite a few flight cancellations, which further increases the fear of a cold winter in Europe, and natural gas prices are soaring around the world. The stock market in Germany and France are down about 0.3% and the UK is also down 0.4%.
Shares in titles
Microsoft (MSFT) will concentrate interest today after announcing the purchase of approximately 4% of the shares of the London Stock Exchange as part of a 10-year agreement. The London Stock Exchange Group will spend at least $2.8 billion on Microsoft’s cloud products. Microsoft will transfer the database of the exchange and other parts of the technological infrastructure to its cloud product AZURE.
The pharmaceutical company Amgen (AMGN) will acquire the biotech company Horizon Therapeutics (NYSE: HZNP) in exchange for $116.5 in cash, which reflects a company value of $27 billion fully diluted. The CEO of the acquired company stated, “For almost 15 years, we have built from the ground up one of the fastest growing and most respected companies in the biotechnology industry. We achieved a tremendous amount for the patients, their families and our customers, and created significant value for the shareholders.”
Coup Software (COUP) will be acquired by the private equity company Toma Barbeau in exchange for $81 per share in cash. The deal gives the business expense management software company a market value of $8 billion. The stock jumps about 27% in early trading.
The grill manufacturer Weber (WEBR) will be acquired by the private company BDT Capital Partners in exchange for $8.05 per share in cash, which reflects the company’s value at $2.32 billion. The stock jumps 22% in early trading.