Stock futures were trading with outsized gains ahead of Monday’s open with expectations of tax reform legislation driving the major market averages to new record highs. US lawmakers were expected to approve the latest tax bill this week after making concessions on the child care credit and the alternative minimum tax. The House of Representatives are expected to vote on Tuesday, followed by the Senate vote later in the week.
At 10 am ET, the National Association of Home Builders reports the December housing market index, expected to remain unchanged at 70.
In Monday’s merger news, Campbell Soup ( CPB ) agreed to acquire Snyder’s-Lance ( LNCE ) for $50 per share, a 27% premium over the stock’s prior closing price. Hershey’s ( HSY ) agreed to buy Amplify ( BETR ), the parent company of Skinny Pop popcorn, for $12 per share, and Penn National Gaming ( PENN ) said it will buy Pinnacle Entertainment (PNK) in a cash and stock deal valued at $2.8 billion.
Related markets are mixed ahead of Monday’s open with oil futures trading modestly higher as a result of striking Nigerian oil workers and ongoing closure of the Forties pipeline in the North Sea. Treasury yields are higher across the yield curve on the corresponding risk-on bid in equities, while the dollar is lower against the major currencies.
-Dow Jones Industrial up 0.60%
-S&P 500 futures up 0.36%
-Nasdaq 100 futures up 0.48%
Nikkei up 1.55%
Hang Seng up 0.70%
Shanghai Composite up 0.07%
FTSE-100 up 0.51%
DAX-30 up 1.56%
PRE-MARKET SECTOR WATCH
(+) Large cap tech: Higher
(+) Chip stocks: Higher
(+) Software stocks: Higher
(+) Hardware stocks: Higher
(+) Internet stocks: Higher
(+) Oil stocks: Higher
(+) Biotech stocks: Higher
(+) Drug stocks: Higher
(+) Financial stocks: Higher
(+) Retail stocks: Higher
(+) Industrial stocks: Higher
(+) Airlines: Higher
(+) Autos: Higher
(+) BETR (+70.86%) To be acquired by Hershey ( HSY ) for $12 per share
(+) VIPS (+49.29%) JD.com and Tencent made $863 million investment
(+) RXII (+24.19%) Announced positive results from phase 2 trial of RXI-109
(+) LNCE (+6.75%) To be acquired by Campbell Soup (CBP) for $50 per share
(+) CVA (+6.33%) Forms joint venture with Green Investment Group to develop energy-from-waste projects in UK and Ireland
(-) PETX (-12.91%) AT-016 fails to meet efficacy criteria
(-) CSX (-2.21%) CEO Hunter Harrison died over the weekend
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