Coffee With Greta: Digesting The Rally


DJIA Futures: -178 (-0.5%)

SPX Futures: -10 (-0.2%)

NASDAQ Futures: -1 (-0.01%)

Good morning friends!

Futures are slipping as traders digest last week’s record-breaking run.

Let’s get right to it!

Upcoming S&P 500 Members Rise

Super Micro Computer (SMCI) shares are rallying 16.9% ahead of the open with Deckers Outdoor (DECK) up 4.5% after the S&P 500 announced Friday the two companies will join the blue-chip index later this month. 

They will replace Whirlpool (WHR) and Zions Bancorp (ZION) as of the market open on March 18. 

SMCI currently has a market cap of over $50 billion while DECK is valued at about $22 billion. 

JetBlue, Spirit Ditch Merger Agreement

Spirit Airlines (SAVE) shares are plunging 19.7% in premarket trade after announcing it is ending its agreement to merge with JetBlue Airways (JBLU). 

JBLU shares are up 4.3%. 

The airlines have decided to ditch the deal after losing a federal antitrust lawsuit that challenged it in January. 

The companies appealed that decision soon after as required under the merger agreement but it was not expected to succeed. 

In a note to staff, JetBlue’s CEO said the merger was, “a bold and courageous plan intended to shake up the industry status quo, and we were right to compete with Frontier and go for an opportunity that would have supercharged our growth and provided more opportunities for crewmembers.”

She added, “However, with the ruling from the federal court and the Department of Justice’s continued opposition, the probability of getting the green light to move forward with the merger anytime soon is extremely low.”

Investment Firms Increase Macy’s Buyout Offer

Macy’s (M) shares are jumping 14.2% ahead of the open after Arkhouse Management and Brigade Capital Management increased their buyout offer for the department store chain. 

The firms are now offering to acquire the M stock they do not already own for $24 per share vs the previous offer for $21 per share. 

That represents a premium of about 33% to the closing price of $18.01 per share on Friday and values Macy’s at $6.6 billion. 

Arkhouse said, “We continue to offer the company an attractive alternative solution through a sale of the company at a substantial premium. This would provide Macy’s stockholders with significant value and immediate liquidity.”

Macy’s said, “The Macy’s Inc Board will carefully review and evaluate the latest proposal.”

Bitcoin Tops $65,000

Bitcoin is starting the new week higher, inching closer to its all-time high. 

The cryptocurrency is currently up 4.1% at $65,334.82.

It touched $65,658.10 earlier this morning, the highest level since November 2021. 

Bitcoin gained 21% last week, marking its best week in nearly a year. 

The coin hit an all-time high of $68,982.20 intraday in November 2021. 

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