Yahoo's big breach, Focus on the Fed and biotech's billion dollar buy. This is what you need to know before the bell.
Yahoo shares have dropped 2.5% after the company disclosed that 1 billion Yahoo accounts had been hacked. This is the second major security breach for Yahoo, which admitted in September that 500 million accounts had been compromised. The twin revelations could threaten the company's $4.8 billion sale to Verizon.
Global markets are focused on the Fed after it raised interest rates for only the second time in a decade. Fed Chair Yellen also caught investors by surprise when she revealed 2017 could see three additional increases, helping snap a seven-day winning streak for the Dow as it races towards the 20,000 point barrier.
Biotech is still on the agenda, as Lonza snaps up Capsugel for $5.5 billion, pushing the Swiss biotech firm further into health care. Lonza will purchase the firm via a combination of debt and equity financing, assuming about $2 billion in Capsugel debt. Lonza's CEO said the merger will eventually add around $30 million in synergies each year.
Edward Hardy reporting for TheStreet in London