Stocks set to open mixed as Fed meeting kicks off
U.S. stock index futures were trading mixed early Tuesday, as investors took a pause ahead of the Federal Reserve’s policy meeting.
The Federal Open Market Committee (FOMC) meeting kicks off today and the central bank will announce its interest rate decision at 2:00 p.m. ET on Wednesday. A quarter-of-a-percentage-point rate reduction is baked into the market already.
By 6:43 a.m. ET, Dow futures were down 40 points or 0.15% to 27,013 while the S&P 500 futures declined 1.63 points, or 0.05% to 3,034.62. The tech-heavy Nasdaq 100 futures advanced 4.13 points, or 0.05% to 8,098.88.
On the earnings front, Mastercard (NYSE: MA), Pfizer (NYSE: PFE), Kellogg (NYSE: K), BP (NYSE: BP), and Merck (NYSE: MRK) will report quarterly results ahead of the opening bell.
Companies reporting after the market close include Chubb (NYSE: CB), Mondelez International (NASDAQ: MDLZ), and Amgen (NASDAQ: AMGN),
Louis Vuitton makes $14.5 billion offer to buy Tiffany
Luxury powerhouse LVMH, which owns brands such as Louis Vuitton and Hennessy, has made an unsolicited $14.5 billion bid to acquire jeweler Tiffany (NYSE: TIF) for $120 a share, according to Bloomberg News.
People familiar with the situation told the news outlet that Tiffany is assessing the offer, but there is no guarantee of a deal. Shares of Tiffany ended Monday’s regular trading session with a gain of $31.17, or 31.63% to $129.72.
Google owner Alphabet reportedly looking to buy Fitbit
Google parent Alphabet (NASDAQ: GOOG) is said to be in talks to buy wearables maker Fitbit (NYSE: FIT), according to Reuters. The deal is still being discussed and could still crumble, according to sources cited by the news outlet.
If Alphabet moves forward with the acquisition, it would improve its position in the wearable fitness tracking space and help it compete with Apple (NASDAQ: AAPL) and Samsung Electronics’ wearables.
Shares of Fitbit skyrocketed more than 30% in midday trading Monday after the news.
Beyond Meat stock tumbles despite first-ever quarterly profit
Beyond Meat (NASDAQ: BYND) reported higher-than-expected earnings and revenue late Monday, but its shares slumped in extended trading hours on concerns about the expiration of its post-IPO lockup period.
The plant-based meat substitutes maker will end its lockup period today (Tuesday) and analysts fear that could lead to a sell-off in the stock as pre-IPO investors and insiders get a chance to sell their shares.
Beyond Meat had a net profit of $4.1 million, or $0.06 per share in the third quarter, compared with a loss of $9.3 million, or $1.45 per share in the same period last year. Total revenue came in at $92 million, up 250% from a year ago.
On average, analysts polled by Refinitiv were expecting the company to report earnings of $0.03 per share on revenue of $82.2 million.
The stock was down 9.21% to $95.70 in premarket trade.
