The potential collapse of the JetBlue (JBLU, Financial) and Spirit Airlines (SAVE, Financial) merger sent shockwaves through the market as Spirit's stock tumbled 12% in premarket trading. JetBlue's recent filing raised concerns that certain conditions for the acquisition might not be met before the termination date, causing uncertainty among investors. Spirit's shares have suffered a significant 65% drop since a federal judge blocked the deal, although there was a brief resurgence with preliminary Q4 estimates from the airline.
Meanwhile, Snap Inc. (SNAP, Financial) received a positive outlook from Deutsche Bank, leading to a 3% rise in premarket trading. The upgrade to a Buy rating was driven by improved advertising trends, growth in Snapchat+, and a promising partnership with Amazon (AMZN, Financial). The social media company's subscription service has crossed 7 million subscribers, contributing to its revenue, while the Amazon partnership could prove to be a substantial benefit for Snap.
American Express (AXP, Financial) shared a brighter forecast, projecting a full-year adjusted profit above expectations and announcing a 17% increase in its quarterly dividend. Despite missing Q4 earnings expectations, the company's revenue growth and new card additions provided a positive outlook, pushing its shares up in premarket trading. Colgate-Palmolive (CL, Financial) also remained in focus as investors evaluated its stock performance.
Biotech and pharmaceutical companies showed significant movements, with Aclarion (ACON, Financial) and Panbela Therapeutics (PBLA, Financial) experiencing substantial gains. Corbus Pharmaceuticals Holdings (CRBP, Financial) also saw an uptick as its antibody drug conjugate showed promising results in a study. Envirotech Vehicles (EVTV, Financial) gained attention with a substantial EPA grant for its electric school buses, and Core Scientific (CORZ) prepared for bankruptcy emergence with a rating upgrade.
Salesforce (CRM, Financial) made headlines with a 1% workforce reduction, continuing the trend of job cuts in the tech industry. The company had previously reduced its staff by 10%, and despite the layoffs, Salesforce still has 1,000 job openings.
Microsoft (MSFT, Financial) maintained its Buy rating from Citi after impressing with its artificial intelligence capabilities during a tour in New York City. The tech giant's GitHub Copilot and upcoming Enterprise Copilot SKU were highlighted as indicators of Microsoft's leadership in generative AI.
Intel (INTC, Financial) faced a setback with its shares dropping 10% after releasing a weaker-than-expected guidance for Q1. The company's forecast fell short of analyst expectations, raising concerns about the progress made over the past year.
The Biden administration's pause on new licenses for U.S. liquefied natural gas (LNG) export plants to review environmental impacts marked a significant development for environmental groups. This decision will affect four pending projects and is expected to extend beyond the November election.
Pharmacy Benefit Managers (PBMs) represented by the Pharmaceutical Care Management Association (PCMA) nearly doubled their lobbying expenditure in 2023 amidst scrutiny over their role in rising drug costs. Members like CVS Health (CVS, Financial), Cigna (CI, Financial), and UnitedHealth Group (UNH, Financial) are part of this association, which is facing increasing public and political pressure.
Dividend activity this week included increased payouts from Kimberly-Clark (KMB, Financial) and Yum! Brands (YUM, Financial), with upcoming ex-dividend dates for Morgan Stanley (MS, Financial) and Costco (COST, Financial).
Bausch + Lomb (BLCO, Financial) faced a downgrade to Underweight by J.P. Morgan due to risks associated with its full spinoff from Bausch Health (BHC, Financial), while Archer-Daniels-Midland (ADM, Financial) declared an increased quarterly dividend, highlighting its financial strength.
