5 Things to Know Before the Stock Market Opens - Investopedia

Anglo American says it won’t give rival mining giant BHP Group (BHP) more time to commit to buying it, signaling an end to the roughly $50 billion bid; Marathon Oil (MRO) shares are surging after ConocoPhillips (COP) acquires it for $22.5 billion including debt; Salesforce (CRM) is due to report higher top- and bottom-line first-quarter results after the bell, with investors watching for growth in the company's data cloud segment and any updates related to artificial intelligence (AI); American Airlines (AAL) shares are tumbling in premarket trading after it lowered its second-quarter guidance and announced a key executive departure; and the International Monetary Fund (IMF) raises its forecast for China’s growth for 2024 and 2025, citing strong first-quarter GDP and stimulus measures by Beijing. U.S. stock futures are falling. Here’s what investors need to know today.

1. Anglo American Signals End to BHP Takeover Battle

Anglo American said it won’t give rival mining giant BHP Group (BHP) more time in committing to buying it, likely ending BHP’s almost $50 billion bid to take over the miner. The third and most recent offer by BHP, according to Anglo, involved a “highly complex and unattractive structure.” BHP had been seeking a breakup of Anglo, including spinning off its South African platinum and iron ore units. BHP’s bids for Anglo illustrate the growing importance of copper, with copper wiring powering not just the transition toward more renewable energy projects and electric vehicles but also the increasingly large data centers to run AI. Anglo American shares are down 1.9% in London trading, while BHP stock on the New York Stock Exchange (NYSE) is up 1.6% premarket.

2. Marathon Oil Jumps as ConocoPhillips Buys It for $22.5B 

Marathon Oil (MRO) shares are surging nearly 8% in premarket trading after ConocoPhillips (COP) said it has agreed to acquire its fellow Houston-based energy firm in a $22.5 billion all-stock deal. The takeover agreement, which is inclusive of $5.4 billion of net debt, represents a 14.7% premium to Marathon’s closing stock price on Tuesday, ConocoPhillips said. It is the latest mega transaction in the energy sector, with ExxonMobil (XOM) having recently completed its deal to buy Pioneer Natural Resources for nearly $60 billion and Hess (HES) shareholders Tuesday accepting a $53 billion takeover from energy giant Chevron (CVX). Upon closing of the transaction, ConocoPhillips expects share buybacks to be over $20 billion in the first three years, with over $7 billion in the first full year, at recent commodity prices. Shares of ConocoPhillips are down about 3%.

3. Salesforce Dips as Investors Await Q1 Results After the Bell 

Salesforce (CRM) is due to report first-quarter results after the bell, with investors likely to be watching for growth in the company's data cloud segment and any updates related to artificial intelligence (AI). The customer relationship management (CRM) company is expected to report that revenue and net income gained from the year-ago period but fell from the previous quarter. Analysts anticipate diluted earnings per share (EPS) of $1.45, compared with 20 cents in the same period a year ago. Salesforce shares are down less than 1% premarket.

4. American Airlines Slumps on Lower Guidance, Executive Departure

American Airlines shares are tumbling more than 8% in premarket trading after the airline lowered its second-quarter guidance and said a key executive was departing. American, the world’s largest airline by fleet size, said it now sees current-quarter revenue declining between 5% and 6%, down from its earlier forecast of a 1% to 3% contraction. The airline also trimmed its bottom-line guidance for the period, saying it expects adjusted earnings to range between $1 and $1.15 per share, below its prior projection of $1.15 to $1.45 a share. Analysts had been calling for adjusted earnings of $1.30 per share. The airline also said its chief commercial officer, Vasu Raja, the architect of its policy to sell tickets through its app and website rather than third-party agents, was leaving.

5. IMF Raises China's GDP Growth Forecast, Citing Q1 Strength, Stimulus

The International Monetary Fund (IMF) has raised its forecast for China’s growth for 2024 and 2025, citing strong first-quarter GDP and stimulus measures by Beijing. The fund said it now expects GDP in the world’s second-largest economy to increase by 5% in 2024 and by 4.5% in 2025, up 0.4 percentage points each from its previous forecast. It also said the risks from the property sector downturn were “tilted to the downside.” IMF First Deputy Managing Director Gita Gopinath said, however, that the fund expects China’s economy to slow to 3.3% growth by 2029 due to aging and slower productivity growth, and warned that China's "use of industrial policies to support priority sectors” could lead "to a misallocation of domestic resources and potentially affect trading partners."

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