US OPEN: American stocks start the week higher amid numerous M&A announcements

• American equities advance amid multiple M&A announcements

• US500 slightly above 50-hour moving average

• Oracle reportedly won the bid for TikTok US

U.S. stock markets have started the week with an upbeat mood. As investors witnessed multiple M&A announcements throughout the weekend and today, American indices seem to have stabilised for now. With almost empty calendar today, investors are already looking ahead as this week will bring us some key events including FOMC rate decision and Powell’s conference on Wednesday. At press time all major U.S. indices advance. Nasdaq (US100) is rising as much as 1.95% as Big Tech is trying to recover from worst week since March. 

US500 has been trading in a range between 3,315 and 3,415 pts in the past few days. The index tested 50-hour moving average (purple line) today and this barrier seems to prevent US500 from further declines. Should market bulls gain stronger control on the market, the 3,415 pts may be regarded as a short-term resistance level (slightly above 38.2% Fibo retracement of the recent sell-off). On the other hand, the zone marked with previous lows should provide some solid support. Source: xStation5

S&P 500 top movers at 2:34 pm BST. Source: Bloomberg

NVIDIA (NVDA.US) said yesterday that it would acquire the British chip designer Arm from SoftBank Group. Nvidia will pay $21.5 billion in stock and $12 billion in cash. The deal is worth up to $40 billion as SoftBank may receive additional payments depending on the firm’s performance. The transaction is said to instantly transform Nvidia into one of the most influential companies in smartphone technology. 

Oracle (ORCL.US) has reportedly won the bid for TikTok US over Microsoft (MSFT.US) - reports both The Wall Street Journal and Reuters. According to unnamed sources, Oracle’s bid is said to be a partnership rather than an outright sale. Should the proposed partnership with TikTok be true, it still needs to be approved by the White House and the Committee on Foreign Investment in the U.S. 

Oracle (ORCL.US) started today’s session with a huge bullish gap amid TikTok-related news. The $57.50 area seems to be crucial zone as investors have witnessed some price reactions there. Moreover, stock price is currently testing the upper limit of an upward channel. Source: xStation5

Delta Airlines (DAL.US) announced plans to raise $6.5 billion in its frequent-flier program. American carrier intends to secure enough cash to weather the coronavirus crisis by issuing a private-notes offering and entering into a new credit facility. Delta will be the third airline to shore up liquidity this way as the firm is still bleeding roughly $27 million in cash a day. 

Immunomedics Inc (IMMU.US) shares soared 106% in pre-market today as the company will be acquired by Gilead Sciences for $88 a share in cash. Thereby the deal is worth about $21 billion. The transaction was unanimously approved by both Gilead and Immunomecics boards and should be closed in Q4 2020. “This acquisition represents significant progress in Gilead’s work to build a strong and diverse oncology portfolio,” Gilead CEO said.