President Donald Trump’s first full month in office resulted in the addition of 235,000 new nonfarm payrolls, as well as a decline of the unemployment rate to 4.7%. Those figures topped expectations and helped the markets rally on an up-down-and-up-again Friday.
Heading into Monday’s trading, a light earnings slate gives way to index rebalancing, M&A and other dealmaking. That puts Mobileye NV (NYSE:MBLY), Advanced Micro Devices, Inc. (NASDAQ:AMD) and Boeing Co (NYSE:BA) in the spotlight.
Here’s what you need to watch heading into Monday’s trade.
Mobileye NV (MBLY)
Patient MBLY investors who suffered through numerous ups and downs were rewarded on Monday with the announcement that Intel Corporation (NASDAQ:INTC) would be snapping up the computer vision and machine learning company.
Intel, looking to bolster its position in the autonomous-driving arena, says it will purchase Mobileye for $15.3 billion. INTC plans to keep the brains intact, announcing it will have Mobileye co-founder and Chief Technical Officer Amnon Shashua at the head of Intel’s autonomous driving division.
MBLY built its name in self-driving via its works with Tesla Inc (NASDAQ:TSLA), though that relationship will end soon, on rocky ground. However, Mobileye also was working with BMW — in partnership with Intel, no less — on its own self-driving tech.
The deal values MBLY stock at a roughly 34% premium to Friday’s closing price. Per Intel:
“A subsidiary of Intel will commence a tender offer to acquire all of the issued and outstanding ordinary shares of Mobileye for $63.54 per share in cash, representing a fully-diluted equity value of approximately $15.3 billion and an enterprise value of $14.7 billion.”
MBLY shares are up a little less than that in Monday morning trade, heading a still-robust 31% higher.
Advanced Micro Devices, Inc. (AMD)
AMD shares are continuing a late-Friday rally this morning amid news that the graphics-focused chipmaker will join the S&P 500.
In the latest rebalancing, Urban Outfitters, Inc. (NASDAQ:URBN), Frontier Communications Corp (NASDAQ:FTR) and First Solar, Inc. (NASDAQ:FSLR) will be bumped from the index.
Advanced Micro Devices, Raymond James Financial, Inc. (NYSE:RJF) and Alexandria Real Estate Equities Inc (NYSE:ARE) will move up to the big leagues. ARE, a real estate investment trust, will join Realty Income Corp (NYSE:O) as the only REITs in the index.
AMD stock has gained an incredible 450% in the past year alone, part of a 750%-plus rally from its lows in 2015. Driving the company of late is excitement over the company’s new Ryzen processor and Vega graphics cards, which are expected to squeeze the competition on both quality and price.
AMD shares are up another 3%-plus in Monday’s premarket action.
Boeing Co (BA)
Boeing over the weekend inked a new deal to continue delivering aircraft to the South Korean government.
BA signed a five-year contract to extend its relationship with South Korea regarding the country’s air force’s F-15K aircraft, which Boeing will continue manufacturing and supplying.
The aircraft maker also rolled out the Boeing 787-9 Dreamliner through Korean Air, which has half of its body made of reinforced carbon, making it lighter and more efficient than your typical aircraft.
It is 20% more efficient, while also producing 20% less greenhouse gas. It has higher cabin air pressure than other planes, making flights more comfortable for passengers.
BA shares are starting Monday off weak, down about 1%, but are up roughly 15% year-to-date.
