Nov. 20 Premarket Briefing: 10 Things You Should Know

U.S. stock futures are rising Friday amid optimism that any interest rate increases by the Federal Reserve would be gradual.
By Joseph Woelfel ,

Here are 10 things you should know for Friday, Nov. 20:

1. -- U.S. stock futures were rising Friday amid optimism that any interest rate increases by the Federal Reserve would be gradual.

European stocks traded flat to lower Friday amid strong hints from European Central Bank President Mario Draghi of further monetary easing.

Asian stocks finished the session with modest gains.

2. -- The economic calendar in the U.S. on Friday is empty.

Must Read: 5 Tech Stocks George Soros Loves for 2015

3. -- U.S. stocks on Thursday ended flat to lower following the successful trading debut of Square (SQ) - Get Report .

The S&P 500 fell 0.11%, the Dow Jones Industrial Average ended flat, and the Nasdaq slipped 0.03%.

4. -- Pfizer (PFE) - Get Report and Allergan (AGN) - Get Report are considering structuring a merger of the drug companies so that it's an acquisition of Pfizer by Allergan, The Wall Street Journal reported, citing people familiar with the matter.

However the deal is technically structured, Pfizer, which is the larger company, will effectively be buying Dublin-based Allergan and assuming a lower offshore tax jurisdiction. Allergan shareholders would receive a premium and end up with 40% to 45% of the combined company, some of the people told the Journal. The deal is expected to be mainly in stock, but it could contain a small cash component, the people said.

The companies are likely to strike a deal in seven to 10 days, assuming the talks don't fall apart, the people told the Journal.

If Allergan was the buyer, the move could make it easier for the companies to sidestep a government crackdown on so-called inversion deals, the Journal noted. 

5. -- Nike (NKE) - Get Report on Thursday announced a 2-for-1 stock split, a a 14% increase to its quarterly dividend, and has been given board approval to buy back up to an additional $12 billion in stock.

Nike shares closed at $125.78 on Thursday and were rising by 4% in premarket trading on Friday.

6. -- Gap (GPS) - Get Report slashed its profit outlook for the year after reporting disappointing third-quarter sales.

The retailer said sales fell 4% at established Gap locations. Banana Republic sales fell 12%.

Gap reported fiscal third-quarter profit of 63 cents a share on an adjusted basis, which was in line with Wall Street expectations. Revenue fell to $3.86 billion, missing forecasts. 

The company said it expects full-year adjusted earnings in the range of $2.38 to $2.42 a share. It previously said it expected profit of $2.75 to $2.80 a share.

7. -- Google said Diane Greene, a board member, would head the company's cloud business that caters to companies.

Larry Page, Google's co-founder and chief executive of the parent company, Alphabet (GOOGL) - Get Report , called the new post a "huge new responsibility at Google," The New York Times reported.

By placing Greene, a respected Silicon Valley entrepreneur and technologist, in charge of its corporate business, Google is signaling that it plans to move forcefully beyond its consumer roots, the Times noted.

8. -- U.S. authorities are investigating German auto supplierRobert Bosch over its role in Volkswagen's scheme to cheat U.S. emission standards, Reuters reported, citing people familiar with the matter. 

Federal prosecutors with the Department of Justice are examining whether Bosch, the world's largest auto supplier, knew or participated in Volkswagen's years-long efforts to circumvent U.S. diesel emissions tests, the people told Reuters. Bosch built key components in the diesel engine used in six Volkswagen models and one Audi model that the automaker has admitted to rigging to defeat emissions tests.

Federal authorities are also investigating how deeply the scheme permeated VW's hierarchy, Reuters reported, citing people familiar with the matter.

9. -- Noble Midstream Partners, a subsidiary of Noble Energy (NBL) - Get Report , postponed its planned initial public offering, citing a weak stock market.

 "Noble Midstream will continue to evaluate the timing for the proposed offering as market conditions develop," the company said in a statement on Thursday.

The company filed for an IPO on Oct. 22.

10. -- Earnings are expected Friday from Abercrombie & Fitch (ANF) - Get Report and Foot Locker (FT) - Get Report .

Loading ...