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Amazon, Apple, Tiffany, Marvell, Ford - 5 Things You Must Know Thursday

Stock futures rebound modestly following the S&P 500's 3.5% drop; Amazon, Apple, Alphabet and Facebook report earnings; Tiffany accepts a lower offer from LVMH.

Here are five things you must know for Thursday, Oct. 29:

1. -- Stock Futures Post a Slight Recovery

Stock futures were suggesting Wall Street would rebound slightly from the S&P 500's 3.5% drop Wednesday, the biggest lost since June 11, as coronavirus cases rise in the U.S. and Europe and investors worry lockdowns could derail an economic recovery. 

Wall Street will be monitoring a report on third-quarter U.S. economic growth and earnings after Thursday's closing bell from the country's largest technology companies.

Contracts linked to the Dow Jones Industrial Average were up 52 points, S&P 500 futures gained 11 points and Nasdaq futures rose 80 points.

Stocks finished sharply lower Wednesday as investors' fears about the pandemic's impact on economic activity heightened. The Dow declined 943 points, or 3.43%, to 26,519, the S&P 500 declined 3.53% and the Nasdaq slumped 3.73%.

“The 3.5% pullback in the S&P 500 (Wednesday) and three consecutive days of declines take us back to where the market was the last week of September," said Greg McBride, chief financial analyst at Bankrate. "With the market closing near its low point of the day, there is likely more volatility to come - both up and down - so investors are best served to ride it out and focus on the long-term.”

European stocks slumped Thursday after Germany imposed a four-week partial lockdown, and France announced tough mitigation measures to slow the spread of the virus, which has killed more than 1.17 million globally and nearly 228,000 in the U.S.

Coronavirus cases have been increasing in almost every U.S. state and the number of deaths and hospitalizations from Covid-19, the disease caused by the coronavirus, also have been rising. 

2. -- Amazon, Apple, Alphabet and Facebook Report Earnings

Earnings reports are expected Thursday from  (AMZN) - Get, Inc. Report, Apple  (AAPL) - Get Apple Inc. (AAPL) Report, Alphabet  (GOOGL) - Get Alphabet Inc. Class A Report, Facebook  (FB) - Get Facebook, Inc. Class A Report, Twitter  (TWTR) - Get Twitter, Inc. Report, Shopify  (SHOP) - Get Shopify, Inc. Class A Report, Starbucks  (SBUX) - Get Starbucks Corporation Report, Kraft Heinz  (KHC) - Get Kraft Heinz Company (KHC) Report, Comcast  (CMCSA) - Get Comcast Corporation Class A Report, Yum Brands  (YUM) - Get Yum! Brands, Inc. (YUM) Report, Activision Blizzard  (ATVI) - Get Activision Blizzard, Inc. Report, Dunkin' Brands  (DNKN) - Get Dunkin' Brands Group, Inc. Report, Royal Caribbean  (RCL) - Get Royal Caribbean Cruises Ltd. Report, U.S. Steel  (X) - Get United States Steel Corporation Report, Kellogg  (K) - Get Kellogg Company (K) Report, DuPont  (DD) - Get DuPont de Nemours, Inc. Report, Moderna  (MRNA) - Get Moderna, Inc. Report and Spotify  (SPOT) - Get Spotify Technology SA Report.

Amazon's Key Levels to Know When It Reports Earnings

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The economic calendar in the U.S. Thursday includes third-quarter Gross Domestic Product at 8:30 a.m. ET. Economists estimate that U.S. economic growth in the quarter will soar to an annual growth rate of 30.9% following the second-quarter's steep slide of 31.4% that largely was caused by Covid-19 lockdowns.

The calendar also includes weekly Jobless Claims at 8:30 a.m. and the Pending Home Sales Index for September at 10 a.m.

3. -- Tiffany Accepts Lower Takeover Offer From LVMH

LVMH Moet Hennessy Louis Vuitton reached an agreement to buy Tiffany  (TIF) - Get Tiffany & Co. Report for $131.50 a share in cash, below the original price of $135.

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The French luxury goods retailer will save $425 million off the original purchase price of $16 billion for Tiffany, the U.S. jeweler.

Bloomberg had reported Tuesday that Tiffany wanted $132 a share and a guarantee that LVMH wouldn’t withdraw from a new deal, as it did in September. LVMH said then it was acting at the behest of the French government.

The agreement also will settle pending litigation. A trial was set to start in January. LVMH said in September it was backing out of the deal, and Tiffany sued to enforce the merger.

Tiffany shares were up 0.42% to $130.49 in premarket trading Thursday.

4. -- Marvell to Buy Chip Rival Inphi

Marvell Technology  (MRVL) - Get Marvell Technology Group Ltd. Report reached a deal to buy rival chip company Inphi  (IPHI) - Get Inphi Corporation Report.

The deals marks the second big tie-up of semiconductor companies this week, following Advanced Micro Devices'  (AMD) - Get Advanced Micro Devices, Inc. Report $35 billion acquisition of Xilinx  (XLNX) - Get Xilinx, Inc. (XLNX) Report.

Buying Inphi would help Marvell expand its reach in networking, a fast-growing segment that has helped push Inphi's stock up roughly 50% this year, The Wall Street Journal noted. The Journal was the first to report the deal could be announced Thursday.

Marvell agreed to pay $66 a share in cash and 2.323 shares of stock for each share of Inphi. The deal values Inphi at roughly $157.83 a share.

Inphi shares were jumping 31.7% to $146.15 in premarket trading Thursday. Marvell was down 6.6% to $36.92.

Marvell is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.

5. -- Ford's Earnings Top Estimates, Automaker Sees Profits in 2020

Shares of Ford  (F) - Get Ford Motor Company Report were rising 5.45% to $8.12 in premarket trading Thursday after the automaker posted third-quarter earnings that beat Wall Street estimates and said it expects to be profitable in 2020.

Adjusted earnings in the quarter were 65 cents a share, well above analysts' forecasts of 19 cents. Revenue rose to $37.5 billion from $36.99 billion.

The third quarter "reflected Ford’s better execution and benefits from the company’s decision two years ago to reallocate capital to franchise strengths - pickup trucks, SUVs, commercial vehicles and iconic passenger vehicles - and phase out unprofitable sedans," CEO Jim Farley said in a statement.

Chief Financial Officer John Lawler said in a conference call Thursday that Ford now expects adjusted earnings before interest and taxes in 2020 to be between $600 million and $1.1 billion, Bloomberg reported. Ford had projected loss for the year in the second quarter.