Asia stocks set for mixed open; Treasury yields up
Asian stocks looked set for a mixed start Friday amid easing concerns over the omicron virus strain but hurdles for Chinese technology firms. Treasury yields rose after comments from Federal Reserve officials.
Futures pointed higher for Japan and Australia. Dip buyers bolstered U.S. stocks sensitive to the economic outlook, fueling the $S&P 500 Index (.SPX.US)$'s best day since October in a choppy week.
Singapore's first wave SPACs said to move ahead with filing plan
Vertex Holdings, a unit of Singapore state investor Temasek Holdings Pte, and European asset manager Tikehau Capital are preparing to lodge preliminary prospectuses for blank-check company listings in the city-state as soon as next week, according to people with knowledge of the matter.
Singapore buyout firm Novo Tellus Capital Partners is also set to file key documents for an initial public offering of a special purpose acquisition company on the Singapore Exchange, the people said, asking not to be identified as the process is private. The three firms are all working with advisers on the prospectuses, which could pave the way for their respective listings as soon as the end of this year, the people said.
'It's a Trump day' as stocks tied to ex-president stage a rally
$Digital World Acquisition Corp (DWAC.US)$, the blank-check company set to bring Trump Media & Technology Group to the market, surged as much 22% after Reuters reported that the nascent social venture is holding on financing. The news is boosting other stocks with ties to Trump.
For example, $Phunware (PHUN.US)$, a software company that worked on Trump's re-election campaign, leaped as much as 24%. And $CF Acquisition Corp VI (CFVI.US)$, a blank-check firm sponsored by Cantor Fitzgerald, rocketed up 47% before paring some of those gains as it agreed to merge with video platform Rumble Inc., which touted Trump as among its top creators and highlighted an "acceleration of big tech censorship" in an investor presentation.
Grab shares tumble in trading debut after blockbuster SPAC deal
$Grab Holdings (GRAB.US)$'s shares lost more than one-fifth of their value on their first day of trading in New York, a blow to the Southeast Asian ride-hailing and delivery giant after its record-breaking merger with a special-purpose acquisition company.
Shares fell 21% to $8.75, giving Grab a market capitalization of roughly $34.6 billion. The Singapore-based company in April agreed to combine with the SPAC $Altimeter Growth (AGCB.US)$ in a deal that valued it at close to $40 billion, setting a high-water mark for transactions involving blank-check companies.
Kroger sales rise as grocer benefits from consumers eating at home
$The Kroger (KR.US)$ reported strong sales for the latest quarter as consumers continued to opt for eating at home, but said higher supply-chain costs are squeezing its profit. Shares in Kroger were up 11% at $44.78 at midday Thursday. The stock is on pace for its largest percentage increase since Nov. 5, 2019, according to FactSet.
FTC sues to block Nvidia's $40 billion acquisition of Arm
The Federal Trade Commission is suing to block $NVIDIA (NVDA.US)$'s $40 billion acquisition of Arm from Softbank on antitrust grounds. The U.S. action is the biggest hurdle the transaction has faced yet, and threatens whether the deal will be completed. Arm's role in the chip industry was historically as a neutral supplier, raising concerns that Nvidia could cut off competitors from essential Arm technology.
Tesla says it needs graphite from China for batteries, requests tariff waiver
Tariffs levied during the Trump administration's trade war with China are contributing to automotive price increases.
Tesla and SK Innovation both requested a waiver on tariffs for graphite, which is used in the anode component of lithium-ion batteries in electric cars. The outpouring of industry pleas could spur the Biden administration to reinstate government exclusions on 25% tariffs on artificial graphite imported from China, as well as other materials and components.
Record share of U.S. small businesses raise pay, NFIB Says
A record number of U.S. small businesses once again reported raising compensation last month, the National Federation of Independent Business said Thursday.
Forty-four percent of firms boosted pay, matching the largest share in monthly data back to 1986, according to the NFIB's November survey.
Source: Bloomberg, WSJ, CNBC