Stock futures grind higher as dealmaking booms

We’re in ‘secular bull market’ where you need to own equity: Market expert

Capital Wealth Planning Advisory board member Jeff Saut on his outlook for the market. 

U.S. stock indexes were set for a higher open Monday as investors looked ahead to the possibility of more fiscal stimulus and digested a trio of corporate deals. 

The Senate on Sunday unveiled a $1 trillion bipartisan infrastructure plan that would provide cash for roads, bridges, broadband and other infrastructure. 

Meanwhile, Senate Democrats are putting the finishing touches on a $3.5 trillion package that would fund so-called human infrastructure like education, child care and climate change. The plan would need to pass via budget reconciliation to avoid a Republican filibuster.  

Senate Majority Leader Chuck Schumer of New York said he wants both bills to be voted on before Congress goes on recess on Aug. 6. 

STOCK MARKET FACES ELUSIVE PULLBACK AS CORONAVIRUS, ECONOMIC HEADWINDS SWIRL

Dow Jones Industrial Average futures rose 81 points, or 0.22%, while S&P 500 futures and Nasdaq 100 futures 0.52% and 0.36%, respectively. The S&P 500 in July posted its sixth straight monthly gain. 

In stocks, Square Inc. agreed to buy Australia-based Afterpay for about $29 billion in an all-stock deal. The deal, which represents a 31% premium to Afterpay’s closing value on Friday, will pay shareholders 0.375 share of Square for each Afterpay share they own.  

In other deal news, Foot Locker Inc. said it would buy two smaller shoe retailers for a total of about $1.1 billion. The company will pay $750 million for California-based WSS and $360 million for Japanese streetwear company Atmos, according to a report from The Wall Street Journal. 

Elsewhere, defense company Parker-Hannifin Corp. agreed to buy British rival Meggitt for 6.3 billion pounds ($8.8 billion). The deal’s price tag carries a 70.5% premium to where Meggitt shares closed last week. 

Meanwhile, Pfizer Inc. and Moderna Inc. are raising prices for COVID-19 vaccines in Europe, according to the Financial Times. 

In earnings, Ferrari N.V. reported mixed quarterly results and raised its full-year industrial free cash flow guidance. Incoming CEO Benedetto Vigna, who will shift the company’s focus to electrification and software, will take the reins in September. 

In commodities, West Texas Intermediate crude oil fell $1.25 to $72.70 a barrel and gold slipped $5.90 to $1811.30 per ounce. 

Overseas markets rallied across the board. 

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Britain’s FTSE 100 paced the gains in Europe, trading up 0.9%, while France’s CAC 40 and Germany’s DAX 30 were higher by 0.68% and 0.03%, respectively. 

In Asia, China’s Shanghai Composite index climbed 1.97%, Japan’s Nikkei 225 rose 1.82% and Hong Kong’s Hang Seng index advanced 1.06%. 

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