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Alibaba, Marvell and Qualcomm – 5 Things You Must Know Before the Market Opens

Alibaba, Marvell and Qualcomm – 5 Things You Must Know Before the Market Opens

Here are five things you must know for Monday, Nov. 20:

1.
— U.S. stock futures were mostly lower on Monday, Nov. 20, as the Dow
Jones Industrial Average and S&P 500 looked to recover from two-week
losing streaks, while European shares traded cautiously amid the prospect for new elections in Germany.
Wall
Street last week pulled back from recent highs even as the Republicans’
tax bill made progress in the House of Representatives. But competing
tax reform proposals in the House and the Senate have given rise to
concerns that a compromise may not be found prior to the Christmas
break.

In
Europe, stocks traded flat to higher while the euro slipped as
coalition government talks broke down in Germany over the weekend. The
pro-business Free Democrats walked out of the talks, leaving Chancellor
Angela Merkel with the likely option of having to form a minority
government with the Green party or calling fresh elections in the new
year.
For Monday, the economic calendar in the U.S.includes Leading Indicators for October at 10 a.m. ET. 

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2. — Marvell Technology Group Ltd. ( MRVL)  reached a deal to buy chipmaker Cavium Inc. ( CAVM) for about $6 billion.
 
 
Marvell will pay cash and stock for Cavium. The deal values Cavium at $80 a share.
The
purchase price would be a premium of at least 17% to where Cavium
traded before the Journal reported on the possible deal in early
November.
Cavium shares closed at $75.83 on Friday, Nov. 17. The stock rose by more than 7% in premarket trading to $81.01.
A combined Marvell and Cavium would would create a bigger and more well-rounded competitor to chip giants such as Intel Corp. (INTC) and Broadcom Ltd. (AVGO) , the Journal noted.
3. — Alibaba Group Holding Ltd. (BABA)
agreed to acquire a major stake in China’s largest hypermarket
operator, Sun Art Retail Group, as the Chinese e-commerce giant
continues its push into bricks-and-mortar retailing.
The deal could set up what could be a fascinating clash with both Amazon.com Inc. (AMZN) , the world’s biggest online retailer, and Walmart Stores Inc. (WMT) , the world’s No. 1 bricks-and-mortar retailer.
Alibaba
will pay just under $2 billion for a 36% stake in Sun Art Retail, which
operates China’s biggest chain of supermarkets, alongside a similar
stake owned by France’s Groupe Auchan Retail SA and a much smaller
holding for Taiwan’s Ruentex.
Alibaba’s
move looks similar to Amazon’s $13.7 billion acquisition of Whole Foods
Markets earlier this year and positions Alibaba at the forefront of a
$500 billion food market in the world’s second-largest economy and a
global market worth more than $4 trillion.
American depositary receipts of Alibaba traded in the U.S. rose 1% in premarket trading on Monday.

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4. — Qualcomm Inc. (QCOM) is set to win “imminent” Japanese antitrust clearance for its $38 billion bid for NXP Semiconductors NV (NXPI)
and gain approval in Europe by the end of the year with slight tweaks
to its concessions, a person familiar with the matter told Reuters.
Qualcomm,
a supplier of chips for Android smartphone makers and Apple Inc.
AAPL, wants to become the leading supplier to the fast-growing
automotive chips market via the NXP purchase, Reuters noted.
Gaining
approval in Japan and Europe for its purchase of NXP could reinforce
Qualcomm’s fight against an unsolicited $103-billion takeover bid from
Broadcom. Qualcomm has rejected the offer, saying it wasn’t enough and even if it was the tie-up would likely face regulatory hurdles.
NXP and Broadcom are holdings in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells the stocks? Learn more now.
5. — Earnings reports are expected from Agilent Technologies Inc. (A) , Hewlett Packard Enterprise Co. (HPE) , Intuit Inc. (INTU) , Palo Alto Networks Inc. (PANW) and Urban Outfitters Inc. (URBN) .
This story has been updated to include Marvell’s agreement to buy Cavium.