Stock market news today, Aug. 25, 2014: This morning, Dow Jones futures were up modestly on increased merger activity and rising confidence in monetary policy from the European Central Bank. In Jackson Hole, Wyo., ECB President Mario Draghi hinted at further stimulus to keep the gears moving in some of the continent's struggling nations.
The positive momentum is needed after U.S. stocks were mixed on Friday. U.S. Federal Reserve Chairwoman Janet Yellen's speech in Jackson Hole failed to beat back renewed geopolitical concerns in eastern Ukraine. On Friday, NATO announced that Russia was building up a strong troop presence on the eastern border of Ukraine, while another convoy entered the country, stirring the hornets' nest that has dampened investor sentiment for several months.
Here's what you should know to make your Monday profitable:
Merger Mania: Shares of Burger King Worldwide Inc. (NYSE: BKW) were up more than 16% in premarket hours on news the company may purchase Canadian coffee-and-doughnut chain Tim Hortons Inc. (NYSE: THI). Still operating as separate brands, the deal would create one of the world's largest fast-food companies at roughly $18 billion. The deal would also allow Burger King to move its operations to Canada to reduce its corporate tax rate.
Production Problems:The Wall StreetJournal reports that a strategic buyer could purchase Ann Inc. (NYSE: ANN) for up to $55 per share, a 47% premium to Friday's closing price. The paper said that Engine Capital LP, which owns 1% of the company's stock, believes that Ann is on the block, and that they plan to publicly push for its acquisition because the management hasn't moved quickly enough during its negotiations.
Another Deal: Shares of InterMune Inc. (Nasdaq: ITMN) were up more than 36% this morning on news the company will be purchased by Roche Holding Ltd. (OTCMKTS ADR: RHHBY) for $8.3 billion in cash. The deal helps Roche boost its roster of new drugs to treat diseases, including a newly approved drug called Esbriet that treats a deadly lung disease.
Banks Behaving Badly: In yet another settlement that comes too late, banking giant Goldman Sachs Group Inc. (NYSE: GS) has announced plans to pay an additional $1.2 billion to settle charges that the company misled Fannie Mae and Freddie Mac on a number of mortgage securities that the bank sold to the companies prior to the U.S. financial crisis.
Online Attack: Video game players were in the dark on Sunday night and early Monday after a major cyber-attack disrupted service of Sony Corp. (NYSE ADR: SNE) PlayStation and entertainment networks. In a statement the company called a "distributed denial of service attack," the attack blacked out services by sending a massive amount of artificial traffic onto the company's servers. The company said that no personal information was compromised.
Earnings Reports: Stay tuned for earnings reports from Renren Inc. (NYSE: RENN), OSI Systems Inc. (Nasdaq: OSIS), ITT Educational Services Inc. (NYSE: ESI), and Aeroflex Holding Corp. (NYSE: ARX).
Today's Economic Calendar: Today's schedule features the Chicago National Fed Activity Index, the Dallas Manufacturing Index, and an update on new home sales.
Full U.S. Economic Calendar August 25, 2014
Chicago Fed National Activity Index at 8:30 a.m.
PMI Services Flash at 9:45 a.m.
New Home Sales at 10 a.m.
Dallas Fed Manufacturing Survey at 10:30 a.m.
4-Week Bill Announcement at 11 a.m.
3-Month Bill Auction at 11:30 a.m.
6-Month Bill Auction at 11:30 a.m.
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Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.