Here are the most important news, trends and analysis that investors need to start their trading day:
Traders work on the floor of the New York Stock Exchange (NYSE) on February 04, 2022 in New York City.
Spencer Platt | Getty Images
U.S. stock futures rose slightly Monday after the S&P 500 and the Nasdaq Composite logged their best weeks of the year, boosted by Friday’s best one-day gain since 2015 following Amazon’s strong quarterly earnings report. The Nasdaq, however, remained in a correction. The Dow bucked Friday’s uptrend, closing lower. But the 30-stock average did also post a gain for the week. Beaten-up tech stocks were able to bounce Friday despite the better-than-expected January employment report pushing the 10-year Treasury yield to nearly 1.94%. The benchmark yield ticked lower Monday, but it was still above 1.9%.
Spirit Airlines aircraft seen at Los Angeles International Airport.
Alex Tai | SOPA Images | LightRocket via Getty Images
Frontier Airlines and Spirit Airlines, the two largest low-cost carriers in the U.S., have agreed to merge, creating what would become the fifth-largest airline in the country. The boards of both companies approved the deal over the weekend, prior to the CEOs of both airlines announcing the agreement in New York City on Monday. The deal, valued at $6.6 billion, is structured with Frontier Airlines, owned by private equity firm Indigo Partners, controlling 51.5% of the merged airline while Spirit will hold the remaining 48.5%. The deal implies a value of $25.83 per Spirit share, which would be a 19% premium over the value of Spirit shares at the end of last week. Shares of Spirit more than 12% and Frontier Group was off 3% in Monday’s premarket.
A Peloton stationary bike for sale at the company’s showroom in Dedham, Massachusetts, U.S., on Wednesday, Feb. 3, 2021.
Adam Glanzman | Bloomberg | Getty Images
Peloton shares, which have been battered in recent months, soared 30% in Monday’s premarket after The Wall Street Journal on Friday reported e-commerce giant Amazon has approached the company about a potential deal. Other potential suitors are circling, the Journal said, but no deal is imminent and there may not be one at all. The Financial Times separately reported that sneaker maker Nike is evaluating a bid for Peloton. Nike has not yet spoken with the connected fitness-equipment maker, the FT added. Peloton is not yet running a formal sales process, but there is real interest in the company, a person familiar with the talks told CNBC.
Read More: 5 things to know before the stock market opens Monday, February 7