Here are five things you must know for Monday, Feb. 12:
1. -- Stocks Rally
U.S. stock futures pointed to sharp gains for Wall Street on Monday, Feb. 12, as global shares rebounded from their worst week in two years.
Contracts tied to the Dow Jones Industrial Average jumped 296 points early Monday, while those tied to the S&P 500 rose 30 points, following the session on Friday, Feb. 9, that saw wild market swings because of worries related to faster inflation and a rise in interest rates.
The Dow Jones Industrial Average finished with a gain of 330 points, or 1.38%, on Friday but at one point during the session the blue-chip Dow fell as much as 500 points. The S&P 500 gained 1.49% on Friday and the Nasdaq was rose 1.44%.
For the week ended Friday, the Dow declined by 5.21%, the S&P 500 dropped by 5.16% and the Nasdaq dropped 5.06%.
With the economic calendar light on Monday, investors could turn their attention to the release of Donald Trump's $1.5 trillion plan to repair and rebuild the nation's crumbling highways, bridges, railroads, airports, seaports and water systems.
2. -- Broadcom Lines Up More Debt Funding for Qualcomm Bid
Broadcom Ltd. (AVGO) has secured as much as $100 billion of debt financing for its hostile bid for Qualcomm Inc. (QCOM) and has enlisted two more big private-equity firms, The Wall Street Journal reported.
A dozen banks -- including Bank of America Corp. (BAC) , Citigroup Inc. (C) , Deutsche Bank AG (DB) , JPMorgan Chase & Co. (JPM) and Morgan Stanley (MS) - have agreed to provide up to $100 billion of committed credit facilities, including a $5 billion revolver and bridge financing, the Journal reported, citing people familiar with the matter.
In addition, private-equity firms KKR & Co. (KKR) and CVC Capital Partners agreed to join Silver Lake in providing $6 billion in convertible debt for the deal and postclosing working-capital needs, the people told the Journal.
Last week, the board of chipmaker Qualcomm rejected Broadcom's higher unsolicited offer of $82 a share. Qualcomm said the bid provides no value for its pending purchase of NXP Semiconductors NV (NXPI) , for the resolution of licensing disputes with Apple Inc. (AAPL) and for the opportunity to sell a new generation of technology for 5G wireless networks.
Reuters reported over the weekend that the two companies plan to meet on Wednesday, Feb. 14, to discuss the acquisition offer, the first time the semiconductor companies will talk about the potential deal.
Qualcomm rose 2.6% in premarket trading on Monday, while Broadcom gained 1.9%.
Broadcom, Citigroup, JPMorgan Chase, NXP Semiconductors and Apple 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. -- Ford to Ramp Up SUV Production
Ford Motor Co. (F) plans to ramp up production of the Expedition and Lincoln Navigator, the automaker's full-size SUVs.
The company is spending $25 million at its plant in Louisville, Kentucky -- in addition to $900 million in previously announced investments -- on robots, data analytics systems and other technology to produce 25% more big SUVs than the company had originally planned. The investments come as Ford scales back investment by $7 billion on cars to reinvest that in the SUV and truck lineups, the Detroit News reported.
"The response from our customers regarding our new full-size SUVs has been exceptional," said Joe Hinrichs, president of global operations for Ford. In January, Navigator sales surged 88.6% according to the research firm AutoData, CNBC reported.
Ford gained 1.6% in premarket trading on Monday.
4. -- Comcast Considers Reviving Pursuit of Fox
Comcast Corp. (CMCSA) is contemplating reviving its pursuit of Twenty-First Century Fox Inc. (FOXA) after its bid for the company's entertainment assets was turned down despite being more than 15% higher than that of eventual buyer Walt Disney Co. (DIS) , the Journal reported, citing people familiar with the situation.
Fox shares rose 2.1% in premarket trading.
Disney reached a deal in December to buy significant assets of Fox for $52.4 billion in stock. Fox turned down a Comcast offer that was in the low-$60 billions range, the people said. The assets on the table in both offers were essentially the same, including the Twentieth Century Fox movie and TV studio, international pay TV properties and some U.S. cable networks.
Fox's primary concern about the Comcast bid was that a tie-up between the companies would face significant antitrust risks, people familiar with the discussions told the Journal. A Comcast acquisition of Fox would be a "vertical" deal adding more cable TV channels to a company that also is a powerhouse in channel-distribution. The government has signaled concerns about vertical deals, the Journal noted.
5. -- Barclays Faces a New Criminal Charge Over Qatar Loan
Barclays PLC (BCS) faces a new criminal charge in relation to the lender's controversial 12 billion-pound ($16.6 billion) fundraising at the height of the financial crisis a decade ago, Bloomberg reported.
The accusation of "unlawful financial assistance" against Barclays Bank PLC relates to a $3 billion loan Barclays secured for Qatar in November 2008. The Serious Fraud Office had already filed conspiracy to commit fraud and unlawful financial assistance charges against the holding company and four former executives, including ex-CEO John Varley, in June and a trial is scheduled for early 2019, Bloomberg reported.
This article has been updated with fresh premarket prices.