Here are five things you must know for Tuesday, February 15:
1. -- Stock Futures Surge As Reports Say Russian Troops Pull Back From Ukraine Border
U.S. equity futures surged higher Tuesday, while oil prices retreated sharply and the dollar eased, as investors reacted to reports that Russia has pulled some of its troops from the Ukraine border amid what appears to be a de-escalation of tensions between the adjacent eastern European nations.
Concerns over an imminent attack by Russia troops, and the impact of sanctions on the global economy if they were to commence, hit markets hard on Monday, pulling both the Dow and the S&P 500 into negative territory for the session, lifting gold prices to the highest levels in eight months and sparking an oil price rally that took U.S. crude past $95 for the first time since 2014.
Tuesday's reports, as well as a planned visit between Germany's Chancellor Olaf Scholz and Russian President Vladimir Putin, has markets back on course Tuesday, although the underlying pace of gains in Treasury bond yields, linked to bets on aggressive action from the Federal Reserve at next month's policy meeting, continue to influence stock performance.
On Wall Street, futures tied to the Dow Jones Industrial Average are indicating a 365 point opening bell gain while those linked to the S&P 500, which is down 7.65% for the year, are priced for a 62 point advance.
Nasdaq Composite futures are indicating a 270 point gain for the tech-focused benchmark even as 10-year Treasury note yields hold at 2.033% in overnight trading, the highest levels since November of 2019.
2. -- Intel To Buy Tower Semiconductor For $5.4 Billion
Intel (INTC) shares bumped higher in pre-market trading after it agreed to buy foundry chip manufacturer Tower Semiconductor (TSEM) for around $5.4 billion.
Intel will pay $53 per share for Israel-based Tower, a near 63% premium to the group's $33.13 closing price on the Nasdaq yesterday. Intel said the deal will help advance the group's expansion into foundry services -- the actual manufacturing of chips -- as it ramps-up its billions in investment over the next few years.
“This deal will enable Intel to offer a compelling breadth of leading-edge nodes and differentiated specialty technologies on mature nodes – unlocking new opportunities for existing and future customers in an era of unprecedented demand for semiconductors,” said CEO Pat Gelsinger.
Intel shares were marked 1.2% higher in pre-market trading to indicate an opening bell price of $48.15 each. Tower Semiconductor shares soared 44% to $47.70 each.
3. -- Peloton Share Jump On Management Shake-up, Stake Builds
Peloton Interactive (PTON) shares moved higher in pre-market trading following reports of a shake-up in senior management and the purchase of new stakes in the fitness equipment maker by major private equity investors.
Bloomberg news reported that Peloton's chief operating officer, its supply chain head and its chief business officer have all left the company following last week's unveiling of 2,800 job cuts and a pullback in some of its expansion plans in the mid-west. That followed a dismal two weeks for the group that included a 50% retreat for its stock, the departure of CEO John Foley and renewed pressure from activists investors to sell the group as it wrestles with higher input costs, waning demand and supply chain challenges.
That said, 13F filings with the Securities and Exchange Commission last night suggest two of Peloton's largest shareholders -- Tiger Global Management and Bailie Gifford -- boosted there stakes in the group over the fourth quarter, while three new investment groups, including Durable Capital Partners and Sachem Head Capital, unveiled new stakes.
Peloton shares were marked 2.53% higher in pre-market trading to indicate an opening bell price of $33.66 each.
4. -- Elon Musk Donates $5 Billion in Tesla Stock To Charity
Tesla (TSLA) shares extended gains in pre-market trading following the release of Securities and Exchange Commission filings that show founder and CEO Elon Musk has donated around $5.7 billion in stock to a charity.
Musk, by some measures the world's richest man, donated just over 5 million shares to an unnamed charity between November 19 and November 29 last year, around the same time he was unloading around $16 billion in shares of the group as part of a pre-arranged plan to convert earlier share options and meet U.S. tax liabilities.
Earlier this week, data from the China Passenger Car Association showed Tesla sold 59,845 China-made cars last month, down from a record 70,847 units in December.
Tesla shares were marked 2.94% higher in pre-market trading to indicate an opening bell price of $901.55 each.
5. -- Warren Buffett Plays Some Activision
Activision Blizzard (ATVI) shares edged higher in pre-market trading following the release of Securities and Exchange Commission filings that showed billionaire investor Warren Buffett took a stake in the video game maker just weeks prior to a $68.7 billion takeover bid by Microsoft (MSFT).
Buffett bought nearly $1 billion worth of Activision shares of the NBA 2k and Call of Duty game designer over the final three months of last year, SEC filings indicate, for his Berkshire Hathaway investment vehicle. Activision stock traded in the low $50-range in early December, but shot to as high as $82.50 when Microsoft revealed its takeover bid on January 18.
Activision shares were marked 0.23% higher in pre-market trading to indicate an opening bell price of $81.69 each.
