Here are five things you must know for Monday, Jan. 28:
1. -- Stocks Trade Lower as Shutdown Rally Fizzles
U.S. stock futures declined on Monday, Jan. 28, and global stocks drifted lower as last week's late-hour rally on Wall Street, sparked by a surprise concession from Donald Trump to end the 35-day government shutdown, fizzled as markets shifted their focus to a series of major event risks and blue chip corporate earnings in the day ahead.
Investor optimism linked to Trump's decision to sign a bill that funds the government until Feb. 15, faded in the wake of comments he made during an interview with The Wall Street Journal, as well as on social media, that he may double-down on his demand for $5.7 billion in border wall funding when talks between lawmakers resume this week.
"I personally think it's less than 50-50, but you have a lot of very good people on that board," Trump told the Journal when asked about the chances for a longer-term government funding bill, adding that another shutdown next month was "certainly an option."
Investors also were in a cautious mood following data from China that showed industrial profits for December fell by a more-than-expected 1.9%, the second monthly decline and a figure that brings the 2018 tally to 10.3%, around half the pace of 2017 and further cementing concerns of a slowdown in the world's second-biggest economy.
Contracts tied to the Dow Jones Industrial Average fell 100 points, futures for the S&P 500 slipped 11.50 points, and Nasdaq futures were down 32.25 points.
The economic calendar in the U.S. Monday includes the Chicago Fed National Activity Index for December at 8:30 a.m. ET, and the Dallas Fed Manufacturing Survey for January at 10:30 a.m.
2. -- Caterpillar Misses Earnings Estimates
Caterpillar Inc. (CAT - Get Report) earned $2.55 a share on an adjusted basis in the fourth quarter, missing estimates of $2.98. Revenue in the quarter was $14.34 billion, topping forecasts of $14.3 billion.
The heavy equipment maker said it expects 2019 earnings of $11.75 to $12.75 a share; analysts expect $12.73. The stock fell 3.9% in premarket trading.
Later in the week tech giants Apple Inc. (AAPL - Get Report) , Microsoft Corp. (MSFT - Get Report) , Facebook Inc. (FB - Get Report) and Amazon.com Inc. (AMZN - Get Report) will issue their reports. The four stocks are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells the stocks? Learn more now.
3. -- Chemical Companies Versum Materials and Entegris to Merge
Versum Materials Inc. (VSM - Get Report) and Entegris Inc. (ENTG - Get Report) reached a deal to merge, a transaction that combines two chemical companies that make critical components for the semiconductor industry.
The Wall Street Journal first reported the news could be announced Monday.
Under the deal, shareholders of Versum Materials will receive 1.120 shares of Entegris for each existing Versum Materials share. Entegris stockholders will own 52.5% of the combined company, while Versum Materials stockholders will own 47.5%.
The combined company will have a pro forma enterprise value of about $9 billion, the companies said in a statement Monday.
"We are excited to combine with Versum Materials to create a premier specialty materials company for the semiconductor and other high-tech industries,' said Entergris President and CEO Bertrand Loy. "The combined company will be ideally positioned to more effectively help our customers achieve higher yields and new levels of performance and reliability, and together, we will be well positioned to take advantage of long-term secular semiconductor growth."
Loy will serve as CEO of the combined company
4. -- Nissan Confirms It Received SEC Inquiry Over Executive Pay
Nissan Motor Co. (NSANY) confirmed Monday it received an inquiry from the Securities and Exchange Commission and said it was "cooperating fully."
The Japanese automaker added, "We cannot provide further details."
The statement followed reports by both Japanese and foreign media that the SEC was considering investigating Nissan over its pay to executives in the United States, the Associated Press reported.
Nissan's ex-chairman, Carlos Ghosn, is facing charges in Japan that included falsifying financial statements by under-reporting his compensation. Ghosn has been detained in Tokyo since his arrest on Nov. 19. He has denied any wrongdoing.
5. -- Brazil's Vale Suspends Dividend Payments After Dam Disaster
Brazil's Vale S.A. (VALE - Get Report) , world's largest iron ore miner, suspended dividend payments and share buybacks and said it would hold back on executive bonuses following a dam disaster in southeast Brazil that killed 58 people and has left up to 300 people still missing.
The avalanche of iron ore waste from a mine tool place on Friday.
Vale's board also created independent committees to investigate the causes of the dam burst in the state of Minas Gerais and monitor relief efforts in the devastated town of Brumadinho and surrounding area, Reuters reported.
American depositary receipts of Vale were falling 10.3% in premarket trading on Monday.