Capital One Financial (COF, Financial) has announced a significant move in the financial sector with its agreement to acquire Discover Financial Services (DFS, Financial) for $35.3B. This merger is set to create a powerhouse in the global payments and credit card space, potentially reshaping the competitive landscape against Visa (V), Mastercard (MA), and American Express (AXP). The deal, which is expected to close in late 2024 or early 2025, will likely face rigorous antitrust and regulatory scrutiny. Discover's stock saw a pre-market jump of approximately 13%, while Capital One's shares experienced a slight dip.
Meanwhile, Nvidia (NVDA, Financial) is gearing up to report its fiscal fourth-quarter results, with Wall Street firms anticipating a "beat and raise" outcome. The focus is on the company's data center AI-driven spending, which is crucial for the GPU market, especially as generative AI applications increasingly rely on Nvidia's technology. Analysts expect Nvidia to earn $4.63 per share on $20.54B in revenue, with the earnings seen as a key indicator for the tech industry and broader market trends.
In other news, Super Micro Computer's (SMCI, Financial) stock price target has been raised by Rosenblatt from $700 to $1,300 due to the company's strong momentum in AI computing and expected market share gains. The adoption of liquid cooling technology is highlighted as a significant factor for Super Micro's growth, especially in the enterprise sector.
Truist Financial (TFC, Financial) has reached an agreement to sell its remaining stake in its insurance business to an investor group led by Stone Point Capital and Clayton, Dubilier & Rice, valuing the business at $15.5B. This transaction is expected to enhance Truist's capital ratio and tangible book value per share, with a variety of options being considered for the proceeds from the sale.
Intel (INTC, Financial) is on track with its manufacturing plant in Chandler, Arizona, which is expected to become fully operational this year. The plant's progress is seen as a positive sign for Intel's future manufacturing capabilities, with potential funding from the CHIPs Act being a topic of interest.
Walmart (WMT, Financial) has declared a quarterly dividend increase of 9.2%, reflecting confidence in its financial stability and growth prospects. Additionally, Walmart confirmed its acquisition of Vizio (VZIO) for approximately $2.3B, aiming to enhance its in-home entertainment offerings and advertising capabilities.
The Hershey Company (HSY, Financial) has reaffirmed its full-year financial expectations, projecting net sales growth of 2% to 3% and flat adjusted EPS growth. Management will discuss strategies for sustainable, profitable growth at the 2024 CAGNY Conference.
Home Depot (HD, Financial) has announced a 7.7% increase in its quarterly dividend, signaling strong financial health and commitment to shareholder returns. The company's performance and strategic initiatives continue to be closely watched by investors.
Iovance Biotherapeutics (IOVA, Financial) has priced an underwritten offering of its common stock, expecting to raise approximately $211M in gross proceeds. This move is part of the company's efforts to fund its operations and research endeavors.
Finally, a cargo vessel was forced to evacuate its crew after being targeted by Houthi rebels in the Red Sea. This incident marks the first evacuation due to the militant group's missile attacks and underscores the ongoing geopolitical risks in the region.
