Markets set for a positive open
U.S. stock futures moved up early Tuesday, implying Wall Street would open the regular session with gains, as traders digested reports that Russia has returned some troops to their bases after completing military drills on its border with Ukraine.
Interfax, a Russian news agency, quoted the country’s Defense Ministry spokesman Igor Konashenkov as saying military units from the southern and western districts are returning to base after completing their mission.
Warnings from the U.S. and its allies that Russia is likely to invade Ukraine at any time have grown louder in recent days, spooking traders already concerned about the withdrawal of Fed stimulus and high inflation.
At around 5:00 a.m. ET, futures tied to the Dow soared 290 points, or 0.84% to 34,761. S&P 500 futures added 52.25 points, or 1.19% to 4,446.25 while the tech-heavy Nasdaq 100 futures surged 246 points, or 1.73% to 14,499.
Intel to acquire Tower Semiconductor in a $5.4 billion deal
Intel (NASDAQ: INTC) is acquiring Tower Semiconductor (NASDAQ: TSEM), an Israeli chip company that makes circuits and semiconductors used in everything from consumer products and cars to industrial and medical equipment.
In a press release on Tuesday morning, the companies said Intel will acquire Tower for $53 per share in cash, representing a total enterprise value of $5.4 billion.
The deal advances Intel’s IDM 2.0 strategy as the U.S. chipmaker look to expand its global footprint, technology portfolio and manufacturing capacity to address industry demand.
Intel will fund the deal with cash and expects to close it in nearly a year.
Shares of Tower gained $15.14, or 45.7% to $48.27 in the premarket trading session.
Federal regulators reportedly probing block trading at Wall Street hedge funds, banks
Meanwhile, a report published by the Wall Street Journal on Monday, says that federal investigators have launched an investigation into block trading at Wall Street hedge funds and banks including Goldman Sachs Group (NYSE: GS) and Morgan Stanley (NYSE: MS).
The Journal, citing people familiar with the matter, said the U.S. Securities and Exchange Commission (SEC) and the Justice Department is looking into whether banks may have improperly tipped off hedge fund clients ahead of large share sales.
According to the report, Morgan Stanley is said to be an early target of the probe and regulators have been investigating issues around block trades since at least 2019.
The news outlet, citing figures compiled by Dealogic, said Block trades are an important business for Wall Street and rose to a five-year high of nearly $70 billion in 2021.
