Wall Street stocks set for a slightly positive open
U.S. stock futures rose early Tuesday, as the corporate earnings continue to trickle in and Wall Street readies for a key inflation report later this week.
As of 5:30 a.m. ET, Dow futures jumped 51 points, or 0.15% to 35,020. S&P 500 futures added 4.5 points, or 0.1% to 4,480.25 while the tech-heavy Nasdaq 100 futures were up 11.75 points to 14,571.50.
Some of the big companies scheduled to report today include Pfizer (NYSE: PFE), Warner Music Group (NYSE: WMG), Sysco (NYSE: SYY), BP (NYSE: BP), and Trivago (NASDAQ: TRVG).
Peloton cuts 2,800 jobs as CEO John Foley resigns
John Foley, co-founder and CEO of exercise bike maker Peloton (NASDAQ: PTON), is reportedly stepping down.
According to a report in the Wall Street Journal, Foley will step down as CEO and become executive chair. Barry McCarthy, the former CFO of Spotify (NYSE: SPOT) and Netflix (NASDAQ: NFLX) will become the new CEO.
Peloton also plans to slash about 2,800 jobs, or 20% of its workforce, the Journal said. According to the news outlet, the job cuts will not target its fitness instructor roster or content.
On Monday, Peloton surged 20.93% as the market digested a recent report saying that the company has drawn interest from potential suitors for a takeover, including e-commerce behemoth Amazon (NASDAQ: AMZN).
Shares of the company tumbled 94 cents, or 3.16% to $28.81 apiece in Tuesday’s premarket trading session.
Peter Thiel to exit Facebook board
Billionaire investor Peter Thiel plans to step down from the board of Facebook parent company Meta (NASDAQ: FB), the company announced late Monday.
Thiel, an early investor in Facebook, has been a board member since April 2005 but won’t seek re-election at the company’s 2022 annual meeting.
According to a report from the Wall Street Journal, Thiel plans to focus his attention on Republican candidates supporting former President Donald Trump’s agenda in the 2022 midterm elections.
News of his exit comes days after shares of the social media giant suffered a devastating plunge of 26% following a disappointing fourth-quarter earnings report.
As of writing, Meta stock was down $4.01, or 1.78% to $220.90 per share in the premarket trading session on Tuesday.
Nvidia’s scraps its $40 billion deal to acquire Arm
Nvidia (NASDAQ: NVDA) planned purchase of chip designer Arm from Japan’s SoftBank has been called off because of “significant regulatory challenges,” the companies said in a press release early Tuesday.
Nvidia had been seeking to acquire Arm since September 2020, and with the cash-and-stock deal valued at $40 billion at the time, it would have been the most expensive deal ever in the chip sector.
However, the transaction began to face scrutiny right after it was announced. Nvidia is a beast in the chip sector and the deal would have handed it control over designs that rival chipmakers rely on to make their own chips.
The U.S. Federal Trade Commission sued on antitrust grounds, arguing the acquisition could stifle innovative next-gen technologies.
SoftBank is now planning to take Arm public, with an initial public offering scheduled to happen before March 2023.
