4:05pm: Elon Musk clinches Twitter approval for $44 billion takeover offer
News broke in the afternoon that Elon Musk has clinched a deal to buy Twitter for $44 billion in a transaction, shifting control of the social media platform to the billionaire Tesla boss.
Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash for each share of Twitter common stock that they own upon closing of the proposed transaction.
The purchase price represents a 38% premium to Twitter's closing stock price on April 1, 2022, which was the last trading day before Musk disclosed an approximately 9% stake in Twitter.
The news sent Wall Street into a frenzy, sending stocks soaring out of negative territory. By market close, the S&P was up 0.6% at 4,296 points, with the Dow also seeing green at 34,049 for a gain of 0.7%. The Nasdaq had a big day, up 1.3% to close at 13,005 points.
12:05pm: Wall Street red across the board
US stocks continued to see red on Monday at the midday point of trading as concerns over inflation, coupled with China's tightening COVID restrictrictions, weighed on the minds of investors.
At noon, the Dow was down 0.9% to sit at 33,515 points, while the S&P 500 lost 1.1% and the Nasdaq fared slightly better, down only 0.3%.
"US markets, having finished sharply lower on Friday, have picked up where they left off on Friday, opening lower, in a week that is set to be a key test for sentiment as well as earnings, with the likes of Apple, Amazon, Microsoft and Alphabet set to update the markets," Michael Hewson, chief market analyst at CMC Markets UK, said in a note Monday.
"After opening close to its lowest levels since the 15th March, the Nasdaq 100 does appear to be attempting a comeback, edging back into positive territory, while the Dow and S&P500 are off the lows of the day."
On the earnings front, Coca Cola latest 1Q earnings saw revenues and profits come in ahead of expectations. Revenues came in at $10.5 billion, a 16% increase, while profits came in at $0.64 a share. Despite suspending its Russia business Coca Cola reiterated its full year revenue growth target of 7% to 8%.
Twitter shares have moved above $50 on reports that the company is on track to reach a deal with Elon Musk as soon as today, but below the offer price of $54.20.
11.00am: Proactive North America headlines:
Microsoft and Apple Q1 earnings will dictate direction of 'white-knuckle' market ride
ACME Lithium reveals exploration update on its projects in Nevada, Manitoba, and Oregon
BioVaxys enters critical tumor cell supply agreement with Deaconess Research Institute for BVX-0918 bioproduction
PlantX Life says Portfolio Coffee subsidiary launches new e-commerce website
American Battery Technology names Kimberly Eckert as CFO
VolitionRx (NYSE-A:VNRX) launches its Nu.Q Vet Cancer Test in Asia through distributor SAGE Healthcare
LexaGene announces multi-system purchase from a corporate veterinary reference laboratory
Dalrada hails second Indian screening study of its cerVIA kit to test for cervical cancer
Vicinity Motor says to jointly showcase vehicles with partner EAVX at California clean transport expo
PyroGenesis Canada confirms successful site acceptance testing of three DROSRITE systems at Alcoa (NYSE:AA) JV
Australis Capital says AUDACIOUS launches first Mr. Natural product in Nevada
Usha Resources announces amendment to its option deal for drill-ready Jackpot Lake lithium project, Nevada
Steppe Gold discovers multiple high-grade zinc zones below ATO gold deposits
ImagineAR says it is positioned to deliver global immersive AR mobile engagements following FameDays.com launch
Wellbeing Digital Sciences (NEO:MEDI.AQN, OTCQB:KONEF) sets up special committee to explore advances in digital therapeutics for mental health
Empower Clinics launches first Health Canada-approved Vitamin D home testing kit
9.45am: US stocks start lower
US shares started firmly lower on Monday as traders fret about global growth prospects as the coronavirus (COVID-19) pandemic continues to rock equity markets.
The Dow Jones Industrial Average lost around 264 points to stand at 33,546. The S&P 500 shed 35 points at 4,236. The tech-laden Nasdaq exchange dropped around 89 at 12,749.
It comes as Asian stock markets tanked at the start of the week amid concerns about a spike in Covid-19 cases in China, while Beijing has started mass testing for millions of its residents.
Experts say a three-week shutdown in Shanghai, the world's largest shipping container port, along with the Ukraine war, could leave manufacturers and retailers faced with renewed supply and price rise worries.
Fawad Razaqzada, market analyst at City Index and FOREX.com, said: "Well, here we are, more than 2 years into the pandemic and Covid is still roiling financial markets.
"Concerns about demand have intensified as after Beijing locked down parts of Chaoyang District as the virus spread there. This triggered panic as people had hoped that lockdowns would ease in Shanghai rather than more restrictions being imposed elsewhere.
"But now the prospects of the capital city being put into a full lockdown has unnerved investors worldwide. Not only does this imply weaker demand from China, but it could reignite supply chain woes, further exacerbating inflationary pressures."
6.30am: US stocks set to open lower
US stocks were expected to open lower on Monday as a busy week for corporate earnings as well as economic data from the world’s biggest economy unfolds and as Russia’s invasion of Ukraine enters a third month, keeping investors on a state of high alert.
Coronavirus-related restrictions in China are driving Chinese stocks lower and leading to fears that global economic growth will suffer, adding another strand of worry to already uncertain markets.
Futures for the Dow Jones Industrial Average shed 0.8% in pre-market trading, while those for the broader S&P 500 index were down 0.9%, and contracts for the tech-heavy Nasdaq 100 lost 0.8%.
“There are a number of factors which have triggered this risk off-trade,” said Naeem Aslam, chief market analyst at avatrade.com. “Firstly, the conflict between Ukraine and Russia keeps traders on their toes. It doesn't look like this particular situation is going to get better anytime soon as the US has provided more military aid to Ukraine more recently.”
“Secondly, we have the Fed in the US, which is aching to bring the interest rate back to its normal level, and various members of the Fed are spooking equity traders with their own trajectory of Fed's monetary policy,” he said, noting that as things stand, the Federal Open Market Committee is widely expected to raise interest rates by at least 50 basis points at next week’s meeting.
“In terms of economic numbers, this week is an important one: the US inflation numbers are coming out this week. In addition to this, we also have the personal consumer expenditure index, which is considered as the Fed's preferred measure of inflation. On Wednesday, we have the US GDP quarter/quarter number hitting the terminals,” Aslam added.
Yet another concern is about corporate earnings and the extent to which they will be dented by slowing economic growth, with numbers due this week from the four biggest US companies by market capitalization - Apple, Microsoft, Amazon, and Google parent Alphabet.
Against this backdrop, China’s strict, zero-tolerance policy on coronavirus is adding to fears that the country’s economic activity will slow down, denting supply chains which may, in turn, dampen growth across the globe. Notably, the two main indices on the Shanghai Stock Exchange slumped about 5%, in their worst performance since the start of the pandemic early in 2020.
Oil prices were also lower amid concerns about slowing economic activity in China. Benchmark Brent crude futures were down 4.23% at $102.14 a barrel, while WTI was 4.37% lower at $97.61 a barrel.
Contact the author at jon.hopkins@proactiveinvestors.com