Markets
5 Things to Know Before the Stock Market Opens
Google parent alphabet (GOOGLE) is said to be in advanced talks to buy cybersecurity startup Wiz for about $23 billion in what would be its largest acquisition ever; Goldman Sachs (GS) reports second-quarter earnings above expectations as Wall Street powerhouse’s fixed-income trading revenues surge; China’s Q2 gross domestic product (GDP)) rises 4.7% year-on-year, below forecasts, as trade tensions, weak consumer spending and the housing crisis continue to act as a drag; cryptocurrencies and crypto-related stocks are surging after the assassination attempt on Donald Trump was seen by investors as raising the possibility that the former president, who was actively courting the cryptocurrency communitywill win the presidential election in November; and Apple (AAPL) and Samsung, global smartphone shipments rise in the second quarter, but their market shares slip amid stronger gains from Chinese rivals; U.S. stock futures are higher. Here’s what investors need to know today.
1. Alphabet Moves Closer to Buying Wiz for $23 Billion
Alphabet (GOOGLE) It’s inside advanced talks to buy cybersecurity startup Wiz for about $23 billion, the Wall Street Journal reported, in what would be the largest acquisition ever by Google’s parent company. The purchase would be larger than Google’s biggest deal to date, its $12.5 billion acquisition of Motorala Mobility in 2012. Unlike rivals like Microsoft (MSFT), which last year completed its nearly $70 billion acquisition of “Call of Duty” maker Activision Blizzard, Alphabet has mostly focused on smaller deals. If the acquisition goes through, Wiz will join Mandiant in Alphabet’s cybersecurity business. Alphabet shares were nearly flat in premarket trading.
2. Goldman Sachs Q2 Jump on Fixed Income Boost
Goldman Sachs Consulting Firm (GS) posted second-quarter earnings that beat expectations, as the Wall Street powerhouse’s fixed-income trading revenues surged. Second quarter earnings per share (EPS)) was $8.62 and revenue rose 17% year over year to $12.73 billion, aided by a 17% increase in fixed income revenue to $3.18 billion. The results follow Friday’s earnings from JPMorgan Chase (JPM), Fargo Wells (WFC) AND Citigroup (C)—the three banks that kicked off the banking earnings season—despite concerns about a cooling economy while higher interest rates for a longer period have weighed on their shares. Goldman shares are down slightly in pre-market trading.
3. China’s economy grows more slowly than expected
The China gross domestic product (GDP)) rose 4.7% year-on-year in the second quarter, marking a sharp slowdown in the economy as prolonged housing crisisTepid consumer spending and trade tensions continued to weigh. The increase was weaker than the 5.3% growth rate seen in the first quarter and below the 5.0% figure forecast by economists polled by The Wall Street Journal. The slowdown will put pressure on Beijing to stimulate the economy as leader Xi Jinping and top Communist Party officials gather for a biannual meeting to discuss economic reforms.
4. Bitcoin Above $62K; Crypto Stocks Gain
Cryptocurrencies and crypto-related stocks are surging after the assassination attempt on Donald Trump was seen by investors as a boost in the chances that the former president, who was actively courting the cryptocurrency communitywill win the presidential election in November. Bitcoin (BTCUSD) is up about 3% and is trading above $62,000, although outside the token $73,000 record high hit in March in the wake of bitcoin’s regulatory approval exchange-traded funds (ETFs)). Microstrategy (MSTR), one of the world’s largest bitcoin holders, is gaining about 7%, trading app Robinhood (HOOD) is increasing by nearly 3% and cryptocurrency exchange Coinbase (CURRENCY) rose 4% in pre-market trading.
5. Apple, Samsung smartphone shipments rise but Chinese rivals make bigger gains
Apple’s Global Smartphone Shipments (AAPL) and South Korea’s Samsung grew in the second quarter from a year earlier, but their global market shares fell as Chinese rivals made bigger gains, according to data from research firm International Data Corp. Quarterly iPhone shipments rose to 45.2 million units from 44.5 million a year ago, but Apple’s market share fell to 15.8% from 16.6%. Samsung’s market share fell to 18.9% from 20.0%, though it remained the top smartphone seller globally with 53.9 million units, up from 53.5 million. In contrast, Chinese smartphone maker Xiaomi posted a 27% year-over-year jump in global shipments and saw its global market share rise to 14.8% from 12.4%. Apple shares rose nearly 2% in premarket trading.