Here are five things you must know for Thursday, July 12:
1. -- Stock Futures Point to a Wall Street Rebound
U.S. stock futures rose on Thursday, July 12, and global stocks regained some poise following the previous session's selloff that was driven by the U.S. trade fight with China.
Stocks in the U.S. and around the globe tumbled on Wednesday, July 11, after the U.S. threatened additional tariffs on $200 billion worth of China-made goods. The Dow fell 219 points, or 0.88%, to 24,700, the S&P 500 slid 0.71% and the Nasdaq tumbled 0.55%.
The economic calendar in the U.S. on Thursday includes the Consumer Price Index for June at 8:30 a.m. ET, and weekly Jobless Claims at 8:30 a.m.
Delta Air Lines Inc. (DAL) - Get Delta Air Lines, Inc. Report reported second-quarter adjusted earnings of $1.77 a share, 5 cents ahead of estimates, as revenue of $11.8 billion beat forecasts of $11.7 billion. The airline lifted its quarterly dividend by 15% to 35 cents a share. The stock rose 2.1% in premarket trading.
2. -- Broadcom Buys CA Technologies
CA shareholders will receive $44.50 a share under the terms of the agreement, which was approved by the boards of both companies.
The price is roughly 20% above CA Technologies closing price Wednesday of $37.21. In premarket trading on Thursday, CA rose 17.8% to $43.85, while Broadcom shares fell 8.2%.
Broadcom's acquisition of CA follows a failed bid to acquire Qualcomm Inc. (QCOM) - Get Qualcomm Inc Report earlier this year after the Trump administration blocked the deal on national security concerns.
While it's hardly a shock to see Broadcom pursue another big acquisition, TheStreet's Eric Jhonsa said it's safe to say that few expected the target to be a 42-year-old enterprise software firm.
The move said a lot about how confident CEO Hock Tan and the rest of Broadcom's management team are about making a wide variety of tech acquisitions pay off if the valuations are reasonable and there are major cost savings to be had. Nonetheless, it's fair to wonder if Broadcom has put itself too far outside its traditional wheelhouse this time by buying CA.
3. -- Sky Jumps After Comcast Lifts Bid for the Pay-TV Company
Shares of Sky PLC (SKYAY) rose 3% in London onThursday following an improved takeover bid from Comcast Corp. (CMCSA) - Get Comcast Corporation Class A Reportthat likely will ignite a bidding war for Europe's biggest pay-TV group.
Comcast said late Wednesday it will pay £14.75 a share for Sky, which is 39%-owned by Twenty-First Century Fox Inc. (FOXA) - Get Fox Corporation Class A Report, in a bid that tops its prior offer of £12.50 and trumps the improved bid of £14 a share from Fox that was announced on Wednesday.
Comcast's bid values Sky at $34 billion, just ahead of the $32.5 billion bid from Fox, with both companies claiming to have the inside track in regulatory approval from authorities in the U.K. and the European Union.
4. -- Papa John's Founder Schnatter Resigns as Chairman
Papa John's International Inc. (PZZA) - Get Papa John's International, Inc. Report said its founder, John Schnatter, resigned as chairman after he apologized for using a racial slur during a conference call in May.
Forbes reported on Tuesday, July 10, that Schnatter used the n-word on the call in May. When asked how he would distance himself from racist groups, Schnatter reportedly complained that Colonel Sanders never faced a backlash for using the word.
In a statement released by Papa John's, Schnatter said reports attributing use of "inappropriate and hurtful" language to him were true.
"Regardless of the context, I apologize," the statement said.
5. -- Twitter to Purge Suspicious Accounts
The social media platform said tens of millions of accounts previously locked because of suspicious activity will be purged from its follower counts, a closely watched metric. The company said "most" people will lose "four followers or fewer," but prominent Twitter accounts - like those of celebrities and public figures - "will experience a more significant drop," CNN reported.
The company said the move won't affect its number of monthly or daily active user figures. In the first three months of 2018, Twitter had 336 million active users.
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