Beat the Street: US stocks indicated higher; Detroit Three; Activision-Microsoft; Cisco-Splunk
US stocks look set to rise after they fell the previous session on rate hike worries. The Detroit Three enter last-ditch talks to bring auto strikes to a close. Microsoft’s Activision deal is set to get UK approval.
(Partial Video Transcript)
'Detroit Three' angle for strike solution
Hello, I'm Angeline Ong. Welcome to Beat the Street, the show that gives you all the tradeable news and data ahead of the Wall Street Open. Coming up, Wall Street is in focus as stocks inch higher after interest-rate concerns weighed in on the previous session's action.
The ‘Detroit Three’ enter the final stretch to reach a deal with unions, and Cisco buys Splunk in its biggest-ever acquisition in a bid to diversify itself.
Good afternoon and a warm welcome to you and this new edition of Beat the Street. We're going to be joined by IG’s market analyst Axel Rudolph in just a moment. But first, let's just have a look at how equity markets are looking.
Not long now before Wall Street starts trading and we are seeing an indication cautious might add higher as we inch towards the Open.
Activision up after Microsoft takeover approved
Much of this not due to enthusiasm of any sort, but perhaps coming back from what we saw in the last session when investors were digesting the Federal Reserve (interest rate announcement), leaving the door open to perhaps another height before the end of the year.
Also, lots of things for the market to digest. We've got Activision up because the UK is set to give Microsoft's takeover deal of Activision the green light. Alibaba also gaining on its logistics arms, potential initial public offering (IPO).
We're also keeping an eye on the data that is coming up later in the session. This is the flash reading of the S&P global manufacturing and services purchasing managers’ index (PMI).
Many other figures that are expected in the coming week, potentially showing us that perhaps there are cracks forming in the US economy, which has so far been very resilient in the first half.
Now, just a check now on Treasury yields because they did retreat after surging to multi-year highs on Thursday. I also want to check in on growth stocks for you [...].
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