- Musk wants Twitter: Following a drama-filled two weeks, Elon Musk made a move to buy Twitter (NYSE:TWTR) for $54.20 per share in cash. TWTR shares initially rose on the news, climbing 12% premarket to $51.30, before closing lower at the end of the session on Thursday. The deal would value the company at about $43B and is what Musk called his "best and final offer." On Friday, Bloomberg reported, citing anonymous sources, that Twitter brought on JPMorgan to help respond to Musk’s bid. At the same time, company board has decided to safeguard the company, from Musk, if he decides to try hostile takeover of the company, by adopting a limited duration shareholder rights plan, often called a “poison pill.” This means that if Elon musk tries to acquire beneficial ownership of at least 15% of Twitter’s outstanding common stock without the board’s approval, other shareholders will be allowed to purchase additional shares at a discount, diluting the stake of Tesla CEO. TWTR share price was $45 as of closing on Thursday, Giving the stock 20% upside if the board approves the acquisition.
- Bank Earnings show a mixed picture: Shares of JPMorgan Chase (JPM) slipped 3.2% on Wednesday as the bank kicked off the Q1 earnings season, which traditionally begins with the largest U.S. lenders. "We remain optimistic on the economy, at least for the short term - consumer and business balance sheets remain at healthy levels - but see significant geopolitical and economic challenges ahead due to high inflation supply chain issues and the war in Ukraine," Chairman and CEO Jamie Dimon said on a conference call. Goldman Sachs (GS) posted Higher than expected Revenue, however profit fell 42% to $3.94 billion. Goldman shares ended the day nearly flat after climbing as much as 3% earlier. Investors were also disappointed by Wells Fargo (WFS) results, and shares fell more than 4.5% on Thursday. Only 2 major banks that managed to finish the day higher On Thursday were: Morgan Stanley (MS), up 0.75%, and Citigroup (C), up 1.56% the same day.
- Travel Stocks are back: Delta Air Lines (DAL) also head earnings last week and investors were positively surprised. Company management said that they expect to return to a profit this quarter thanks to a jump in bookings — and fares — that are helping offset soaring fuel costs. DAL is up more than 15% during the week, however What Delta Air Lines said when it reported earnings is reverberating throughout the travel sector. Stocks of fellow carrier American Airlines Group (AAL) were up more than 12% and cruise operator Carnival (CCL) gained 5% during the week. Even Stocks like Airbnb (ABNB), Booking Holdings (BKNG) and Hilton Hotels (HLT) had pretty good week.
Index Performance:
Stocks fell lower in late trading on Thursday, deepening losses for all three of the market’s benchmark indexes in the holiday-shortened trading week. The moves came as investors focused on inflation with Treasury yields climbing higher. Higher yields hit tech stocks, sending the Nasdaq Composite 2.6% lower, while the S&P 500 fell 2.1% and the Dow Jones finished down 0.8%.
For more watch video in GEO
Type
Blog
Thumbnail
