Coffee With Greta: Key Fed Week


DJIA Futures: +85 (+0.3%)

SPX Futures: +12 (+0.3%)

NASDAQ Futures: +39 (+0.3%)

Good morning friends!

Futures are rising as traders get ready for a key week of data and the December Fed decision.

Let’s get right to it!

Traders Look Ahead To CPI and The Fed

The market is gearing up for a big week of economic data. 

Things kick off with the release of the November CPI Tuesday morning at 8:30 a.m. ET. 

That index is expected to show headline inflation cooled last month to a 0.2% monthly pace and 7.3% annually.

The Core CPI is expected to rise 0.4% monthly and 6.1% year over year. 

But both the headline and core PPI came in hotter than expected on a monthly basis last Friday.

Following that key inflation data, traders have their focus on the Fed.

The FOMC’s latest rate hike decision will be released at 2:00 p.m. ET on Wednesday. 

CME Group’s FedWatch Tool shows 74.7% of traders expecting the central bank to pivot to a smaller 50bps rate hike this week as inflation pressures begin to show signs of cooling. 

Amgen to Acquire Horizon Therapeutics

Horizon Therapeutics (HZNP) are surging 14.8% ahead of the open after Amgen (AMGN) announced it will acquire the biopharmaceutical company. 

Horizon shareholders will received $116.50 per share for every share they own. 

The deal is valued at approximately $26.4 billion while Amgen said it has an enterprise value of about $28.3 billion.

Horizon develops potential treatments for rare autoimmune and inflammatory diseases.

Coupa Software To Go Private

Coupa Software (COUP) shares are rallying 26.9% in premarket trade after private equity firm Thoma Bravo announced it will buy the business software company in an all-cash deal.

Thoma Bravo will pay $81 per share with the deal totaling $6.15 billion. 

The deal reportedly has an enterprise value of $8 billion. 

The firm has been buying up lower-valued public companies over the past two years including Ping Identity, Sophos, Proofpoint, and Sailpoint Technologies. 

Rivian Ditches Europe EV Van Plans with Mercedes-Benz

Rivian (RIVN) shares are slipping 0.4% ahead of the open after announcing it is pausing plans to manufacture electric commercial vans in Europe with Mercedes-Benz. 

The company said it would “no longer pursue” the agreement. 

Rivian’s CEO said, “We’ve decided to pause discussions with Mercedes-Benz Vans regarding the Memorandum of Understanding we signed earlier this year for joint production of electric vans in Europe.”

He said the company believes focusing on its consumer business and its existing commercial business “represent the most attractive near-term opportunities to maximize value for Rivian.”

But the company said it does remain open to exploring future opportunities with Mercedes-Benz “at a more appropriate time for Rivian.”

In Case You Missed It

  • Consumer sentiment improved unexpectedly in early December. The University of Michigan’s consumer sentiment index rose to 59.1 from 56.8. That topped expectations for the index to fall to 56.5. Consumers’ short-term inflation expectations also improved. The survey showed Americans expect inflation to be at 4.6% 1 year from now and still 3% 5 years from now.

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