— 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.
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
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
For Monday, the economic calendar in the U.S.includes Leading Indicators for October at 10 a.m. ET.
Marvell will pay cash and stock for Cavium. The deal values Cavium at $80 a share.
purchase price would be a premium of at least 17% to where Cavium
traded before the Journal reported on the possible deal in early
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.
. — 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.
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.
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.