Walmart, Amazon, Home Depot, Fisker, Wells Fargo - 5 Things You Must Know

Stock futures rise and tech shares power higher following a slide that was spurred by inflation concerns; Walmart and Home Depot report earnings; Amazon reportedly is in talks to buy Metro-Goldwyn-Mayer Studios for $9 billion.
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Here are five things you must know for Tuesday, May 18:

1. -- Stock Futures Rise as Tech Rebounds

Stock futures rose Tuesday with tech shares powering higher following a slide Monday that was spurred by inflation concerns.

Contracts linked to the Dow Jones Industrial Average gained 69 points, S&P 500 futures were up 10 points and Nasdaq futures jumped 90 points.

Stocks ended modestly lower Monday as Wall Street came off a rough week driven by concerns over what effect rising inflation would have on the U.S. recovery. 

Stocks in Asia rose Tuesday despite a surge of the COVID-19 pandemic in countries such as India, Japan and Thailand.

Back in the U.S., stocks have been volatile as investors weighed a recovery of the economy against rising inflation pressures.

Wall Street has grown increasingly worried that the Federal Reserve will pull back on its support for the economy if it runs too hot and inflation persists.

The Federal Reserve has held steadfast in its belief that a jump in inflation only will be temporary. Investors will be monitoring the release Wednesday of the minutes from the Fed's last meeting for any discussions about accelerating price pressures.

2. -- Tuesday's Calendar: Walmart and Home Depot Earnings, Housing Starts

Walmart  (WMT) - Get Report, the world's largest retailer, posted first-quarter adjusted earnings of $1.69 a share, beating Wall Street estimates of $1.21.

Same-store sales at Walmart rose 6%, while e-commerce sales jumped 37%.

Walmart shares rose 2.26% in premarket trading.

Home Depot  (HD) - Get Report earned $3.86 in the first quarter, beating analysts' estimates of $3.08. Same-store sales in the period jumped 31% amid "unprecedented demand" for domestic projects.

The stock rose 2.11% in premarket trading Tuesday.

Earnings also also expected Tuesday from Macy's  (M) - Get Report, Take-Two Interactive  (TTWO) - Get Report and Baidu  (BIDU) - Get Report

Buy or Sell Walmart on Earnings? A Look at Its Key Levels

Walmart and Take-Two are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.

The U.S. economic calendar Tuesday includes Housing Starts and Permits for April at 8:30 a.m. ET.

3. -- Amazon in Talks to Buy MGM Studios

Amazon.com  (AMZN) - Get Report has been holding discussions to acquire Metro-Goldwyn-Mayer Studios for about $9 billion, according to a report from Variety.

An acquisition of MGM, the company behind the "James Bond" franchise, would help bolster Amazon’s Prime streaming service and help it better compete with Netflix  (NFLX) - Get Report and Walt Disney's  (DIS) - Get Report Disney+. A quick way to do that, Variety reported, would be to add MGM’s extensive library of titles.

MGM claims to own one of the world’s “deepest libraries” of premium film and TV content, Variety noted.

Amazon is weeks into negotiations on a deal to acquire MGM, Variety reported, citing industry sources.

The Information was first to report on Monday that Amazon was in talks about a potential deal for MGM. Sources said the price tag would run between $7 billion and $10 billion. 

Amazon and Disney are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.

4. -- Berkshire Hathaway Buys Aon Shares, Cuts Wells Fargo

Warren Buffett's Berkshire Hathaway  (BRK.A) - Get Report held a stake of about $943 million in insurance broker Aon  (AON) - Get Report at the end of the first quarter.

Berkshire Hathaway's stake in Aon was disclosed in a 13-F filing released late Monday. Aon is merging with Willis Towers Watson  (WLTW) - Get Report,a combination that will create the world’s largest insurance broker.

The 13-F filing also showed that Berkshire Hathaway further reduced its stake in Wells Fargo  (WFC) - Get Report to just more than 675,000 shares as of March 31, from 52 million shares at the end of 2020. It held 345 million shares of Wells Fargo at the end of 2019.

Berkshire Hathaway also exited its stake in Synchrony Financial  (SYF) - Get Report during the first quarter. At the end of 2020, Berkshire Hathaway's stake in Synchrony totaled nearly $699 million.

Wells Fargo is holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells WFC? Learn more now.

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5.-- Fisker Falls on Wider First-Quarter Loss

Fisker  (FSR) - Get Report was falling more than 2% in premarket trading Tuesday after the electric-car company reported a wider first-quarter loss.

Fisker lost $176.8 million, or 63 cents a share, in the first quarter, compared with a year-earlier loss of $1.13 million, or 1 cent a share.

The adjusted loss in the quarter was 11 cents a share. Analysts expected an adjusted loss of 17 cents. Fisker has no revenue.

Fisker's first car - an all-electric sport utility vehicle called the Ocean - will begin production at the end of 2022.

Meanwhile, Henrik Fisker, CEO and founder of the electric vehicle start-up, told CNBC the company doesn't plan to invest in bitcoin or accept the cryptocurrency as payment. Tesla  (TSLA) - Get Report CEO Elon Musk also voiced environmental concerns about the mining of bitcoin last week.