5 Things to Know Before The Stock Market Opens
Spirit Airlines shares rose following reports that it’s pressing JetBlue to appeal the ruling that blocked the merger between the two companies, and iRobot shares plunged as European officials look to block the company’s acquisition by Amazon. Here’s what investors need to know today.
1. Spirit Airlines Stock Jumps as It Presses JetBlue to Appeal Merger Ruling
Spirit Airlines (SAVE) is reportedly pressing JetBlue (JBLU) to appeal a judge’s ruling that squashed the proposed merger between the two airlines. Spirit said the deal requires JetBlue to exhaust all efforts, including filing an appeal, though JetBlue was reportedly concerned by deterioration in Spirit Airline’s business since the deal was proposed in 2022. Shares of Spirit Airlines jumped over 30% in the pre-market while JetBlue shares climbed 2%.
2. iRobot Shares Plunge on Report that European Regulators Plans To Block Amazon Acquisition
Shares of iRobot (IRBT) were down nearly 37% after a report that the European Commission planned to block Amazon’s (AMZN) planned acquisition of the robotic vacuum maker. Amazon missed a deadline to respond to issues raised by the commission’s competition regulators in November. Shares of Amazon traded higher by 0.6% in the pre-market.
3. Macy’s Cuts 3.5% of Workforce To Cut Costs as Sales Slow
Macy’s (M) said it will cut 3.5% of its workforce and close five of its mall locations, trimming as many as 2,350 jobs across its corporate office and stores, as the department store works to cut expenses amid slowing sales. The cuts are part of a corporate focus to expand sales by opening stores in smaller strip malls, moving away from large anchor stores at shopping malls, while also pushing its Bloomingdale’s high-end department store and Bluemercury beauty brand. Shares of Macy’s fell 1% in the pre-market.
4. Meta Shares Rise After Zuckerberg Details GPU Purchases
Shares of Instagram parent Meta Platforms (META) traded higher by 1% in the pre-market after CEO Mark Zuckerberg said in a post that the company is building up its artificial intelligence (AI) infrastructure, projecting that the company would have purchased as many as 350,000 of Nvidia’s (NVDA) H100 graphics processing units (GPU). The investment would reportedly amount to at least $9 billion, with Zuckerberg adding that including other chips, Meta would have 600,000 GPUs in service by the end of the year.
5. Consumer Sentiment To Stay Flat, Home Sales To Tick Higher
The preliminary Michigan Consumer Sentiment Index for January is expected to remain at its prior reading of 69.7 when it is released at 10 a.m. ET. Also at that time, existing home sales for December are projected to tick slightly higher to 3.83 million from 3.82 million. Chicago Fed President Austan Goolsbee will make a TV appearance at 8:30 a.m. ET, Fed Vice Chair Michael Barr will speak at 1 p.m. ET and San Francisco Fed President Mary Daly will deliver remarks at 4:15 p.m. ET.
