Happy Monday everyone. Today is July 13th and the tech-heavy Nasdaq surged 4% as the US set record high COVID cases, because social media, ecommerce, and cloud computing are all lockdown-friendly. U.S. stock futures point to a solid start to the week and Chipmaker Analog Devices announced that they are buying Maxim Integrated in an all-stock deal worth $21 billion. With all the speculation going around, Washington is finally expected to shed the “Redskins” name today and Chipotle announced they will be testing cauliflower rice as a new alternative for a healthier diet. Lastly, the market heads into its worst earnings season in 12 years amid worries that the virus is slowing recovery.
U.S. stock futures traded higher Monday morning as Wall Street tries to build on last week’s gains. Dow Jones Industrial Average futures were up 200 points, or 0.8%. S&P 500 futures climbed 0.7% and Nasdaq-100 futures advanced 0.9%. Last week, the Dow and S&P 500 gained nearly 1% and 1.8%, respectively.
Chipmaker Analog Devices announced Monday it is buying fellow semiconductor producer Maxim Integrated Products for $21 billion in an all-stock deal. The transaction is expected to close next summer, the companies said in a release, adding the value of the new enterprise will be over $68 billion. Maxim shares rallied 17% before the bell and Analog Devices advanced 1.7%.
The Washington Redskins will officially retire the team’s name and logo, the club announced Monday.A new name was not announced. It’s unclear when a new name will be revealed for one of the league’s oldest franchises.Yahoo, on Saturday, reported a name change was imminent.
Chipotle Mexican Grill will start testing cauliflower rice, starting Wednesday. The new option will cost an extra $2. In early 2019, Chipotle sought to attract customers who follow trendy diets like Paleo and Whole30 with its line of Lifestyle Bowls.
Investors turn their attention to earnings season in the week ahead, with Pepsico, Netflix and the major banks among the first to report. Earnings for the S&P 500 are expected to decline by 44%, the worst drop since the fourth quarter of 2008, when profits fell 67%. Investors will continue to watch the impact of the virus on the economy’s ability to reopen and recover, so monthly retail sales Thursday will be important.