AMD, Xilinx, Trump and Stimulus - 5 Things You Must Know Friday

Stock futures rise as President Trump signals he is open to the idea of a larger stimulus package; AMD reportedly is in advanced talks to buy Xilinx; GameStop loses gains.
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Here are five things you must know for Friday, Oct. 9:

1. -- Stock Futures Rise as White House Open to Bigger Aid Bill

Stock futures traded higher Friday after President Donald Trump signaled he wants a comprehensive aid package, reversing a decision he made earlier this week to call off U.S. stimulus negotiations.

Contracts linked to the Dow Jones Industrial Average rose 107 points, S&P 500 futures were up 13 points and Nasdaq futures gained 36 points.

Treasury Secretary Steven Mnuchin has told House Speaker Nancy Pelosi that Trump wants agreement on a large-scale stimulus package, a Pelosi spokesman said. Trump had ordered his representatives on Tuesday to halt talks until after the Nov. 3 presidential election because he said Pelosi was negotiating in bad faith. 

“The on-and-off nature of the fiscal stimulus discussion in the U.S. hardly inspires lasting confidence,” said Mizuho Bank. “Uncertainty around the presidential election on 3 November will likely persist not only through to polling day but possibly after."

Stocks ended higher Thursday as Wall Street parsed the mixed signals about a stimulus package from Trump and Pelosi. Pelosi said Thursday she wouldn't agree to a stand-alone relief bill for airlines without a guarantee that a more comprehensive package would be addressed.

2. --  AMD Reportedly in Advanced Talks to Buy Xilinx

Advanced Micro Devices  (AMD) - Get Report is in advanced talks to buy rival chipmaker Xilinx  (XLNX) - Get Report in a takeover that could be valued at $30 billion, according to reports.

The deal could come together as early as next week, though things remain in flux, people familiar with the matter told Bloomberg. The Wall Street Journal said there's no guarantee the companies will reach an agreement given that the talks had stalled before recently restarting.

Xilinx shares were rising 16.44% in premarket trading Friday to $123.41. AMD fell 3.66% to $83.34.

AMD sports a market cap of more than $101 billion after its stock has jumped nearly 90% so far this year. Xilinx's market cap is about $26 billion.

The addition of Xilinx would give AMD more of the pieces needed to break Intel's  (INTC) - Get Report grip on the profitable market for data-center computer components, Bloomberg noted. It also would help AMD expand into telecommunications and defense markets.

Advanced Micro Devices is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AMD? Learn more now.

3. -- NXP Semiconductors Lifts Guidance

NXP Semiconductors  (NXPI) - Get Report raised its guidance for the third quarter based on better-than-expected performance in its automotive and mobile end markets.

“Relative to the mid-point of our guidance, we experienced material improvement in demand across all end markets, but particularly in the automotive and mobile end markets,” said Kurt Sievers, NXP president and CEO, in a statement.

The company said it expects revenue for the quarter even with a year earlier, at $2.267 billion, vs. previous expectations of a 12% decline. It said adjusted operating income for the period will be $586 million compared with previous expectations of $444 million.

NXP Semiconductors said it had seen improved demand in both its direct and distribution channels. 

“The business environment has improved at a faster than anticipated pace, driving a broad-based increase in revenue, which also enabled higher gross margin, Sievers said.

The stock gained more than 5% to $141.97 in premarket trading Friday.

4. -- GameStop Loses Gains Following Sharp Rally on Microsoft Partnership

GameStop  (GME) - Get Report was falling Friday following the previous session's sharp gains after the company entered into a multiyear strategic partnership agreement with Microsoft  (MSFT) - Get Report that the videogame retailer said would expand its product offerings and enhance its retail infrastructure.

The stock was down 6.97% to $12.55 in premarket trading Friday after jumping more than 44% in Thursday's session.

Under the agreement, GameStop will standardize its back-end and in-store solutions on Dynamics 365, Microsoft’s portfolio of cloud-based business applications and customer data platform.

GameStop said this would enable store staff to access omnichannel insights about customer preferences and purchasing history, real-time information on product availability, subscriptions, pricing, and promotions.

Store staff also will be equipped with new Microsoft Surface devices. GameStop also said it would roll out Microsoft 365 and Microsoft Teams, the business communication platform, to its stores. 

5. -- Coronavirus - The Latest

The number of confirmed global deaths from Covid-19, the disease caused by the coronavirus, rose to 1.062 million, according to Johns Hopkins University. Confirmed cases of the virus across the world have risen to 36,527,341.

The U.S. death toll is 212,784, the most in the world and more than 20% of the global total. The number of infected people in the U.S. was 7,607,250.