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TikTok Picks Oracle, Nvidia Buys Arm, Gilead Buys Immunomedics - 5 Things You Must Know Monday

M&A news and signs of progress on a coronavirus vaccine lift stock futures; Oracle emerges as the preferred buyer of TikTok's U.S. operations; Nvidia buy chip designer Arm from SoftBank for $40 billion.

Here are five things you must know for Monday, Sept. 14:

1. -- Stock Futures Get Lift From M&A, Vaccine Progress

Stock futures were rising Monday amid a flurry of mergers and acquisitions news and signs of progress on a coronavirus vaccine.

Contracts linked to the Dow Jones Industrial Average rose 251 points, S&P 500 futures gained 40 points and Nasdaq futures were up 173 points.

Nvidia's  (NVDA)  $40 billion acquisition of chip designer Arm Holdings, and Gilead Sciences'  (GILD)  $21 billion purchase of Immunomedics  (IMMU)  were boosting sentiment as were comments from Pfizer's  (PFE)  CEO that the company should know by the end of October whether its coronavirus vaccine candidate will work.

If Pfizer's Covid-19 vaccine gets approved, it could be distributed in the U.S. by the end of 2020, said CEO Albert Bourla.

The economic calendar in the U.S. Monday is bare but later in the week will see an interest rates decision from the Federal Reserve and press conference from Fed Chairman Jerome Powell, Retail Sales for August, Housing Starts for August, and U.S. regional Manufacturing data.

Homebuilder Lennar  (LEN)  is scheduled to report earnings Monday. Reports later in the week are expected from FedEx  (FDX) , Adobe  (ADBE)  and Cracker Barrel  (CBRL) .

2. -- Oracle Beats Microsoft for TikTok's U.S. Operations

Oracle  (ORCL)  emerged as the preferred buyer of TikTok's U.S. assets after the video-sharing app's China-based parent rejected a competing offer from Microsoft  (MSFT) .

China's ByteDance informed Microsoft of its decision Sunday, the Redmond, Washington-based tech giant said, according to reports from both Bloomberg and Reuters.

Walmart  (WMT)  and Microsoft were considered front-runners for the TikTok franchise, after the world's largest retailer joined Microsoft's pursuit in late August, just days after Oracle indicated it also was interested in the valuable American operations.

Both President Donald Trump, who ordered the sale of TikTok's U.S. business last month under the guise of national security concerns, and the Chinese government need to approve the sale by Sept. 20. If that deadline passes, Trump told reporters over the weekend, TikTok will cease to operate in its second-largest market.

"ByteDance let us know (Sunday) they would not be selling TikTok’s US operations to Microsoft. We are confident our proposal would have been good for TikTok’s users, while protecting national security interests, Microsoft said. "To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combatting disinformation, and we made these principles clear in our August statement." 

A deal between ByteDance and Oracle will look more like a corporate restructuring than the outright sale Microsoft had proposed, Bloomberg reported, though it is likely to include a stake in a newly configured American business.

Oracle rose 8.33% in premarket trading to $61.75, while Microsoft fell 0.45% to $203.12.

Microsoft is a holding in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells the stock? Learn more now.

3. -- Nvidia to Buy Arm Holdings for $40 Billion

Nvidia  (NVDA)  will buy Arm Holdings from the British chip designer's Japanese parent SoftBank for $40 billion.

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Nvidia, the computer graphics chip company, will pay $21.5 billion in stock and $12 billion in cash for Arm. SoftBank also may receive up to $5 billion in cash or stock if Arm hits certain financial-performance targets. Nvidia also will issue $1.5 billion in stock to Arm employees.

SoftBank purchased Arm for $32 billion four years ago.

Nvidia shares jumped 5.35% to $512.60 in premarket trading Monday. SoftBank shares rose 9% in Tokyo.

Arm's technology goes into chips powering billions of devices shipping each year - everything from smartphones to video cameras to hard drives to washing machines. 

“It’s a company with reach that’s just unlike any company in the history of technology,” Nvidia CEO Jensen Huang said in an interview with Bloomberg. “We’re uniting Nvidia’s leading AI computing with Arm’s vast ecosystem.”

Nvidia is a holding in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells NVDA? Learn more now.

4. -- Gilead Purchases Immunomedics for $21 Billion

Gilead Sciences  (GILD)  reached an agreement to acquire biotech Immunomedics  (IMMU) , which makes breast-cancer drug Trodelvy, for $21 billion.

Immunomedics shares soared 106.51% to $87.25 in premarket trading Monday while Gilead slipped 1.31% to $64.72.

Gilead will pay $88 a share in cash for Immunomedics, a premium of 108% from Immunomedics' closing stock price Friday of $42.25. Immunomedics' market value is about $10 billion.

Immunomedics' Trodelvy gained approval from the U.S. Food and Drug Administration in April. 

“This acquisition represents significant progress in Gilead’s work to build a strong and diverse oncology portfolio,” said Gilead CEO Daniel O’Day in a statement.

5. -- Amazon to Hire 100,000 Workers in U.S. and Canada  (AMZN)  said Monday it was hiring 100,000 full- and part-time employees in the U.S. and Canada with starting wages of at least $15 an hour.

The new jobs come on top of Amazon's announcement last week it would be filling 33,000 corporate and technology positions.

The tech giant and online retailing behemoth also said it would give bonuses of $1,000 to new hires in select cities.

Amazon said Monday it would be opening 100 new buildings in September across fulfillment centers, delivery stations, and other sites.

Amazon is a holding in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AMZN? Learn more now.