It comes in a merger Monday, after Diamondback (FANG) announced a $26 billion deal to buy Endeavor Energy Resources, Wildcat Autry Stephens, cloud networking company Arista Networks Inc. (ANET) and chip design company Cadence Design Systems Inc. (CDNS) announced their post-merger results. bell, and stock futures are trading in tight ranges after last week's S&P 500 record high. Here's what investors need to know today.
1. Diamondback and Endeavor create an energy giant
Shares of Diamondback (FANG) were up about 1% in premarket trading Monday after the fracking company announced a deal valued at $26 billion to buy closely held Endeavor Energy Resources. Diamondback has reportedly beaten ConocoPhillips Co. (COP) in the race to buy the valuable private oil producer founded by wildcat Autry Stephens. A tie-up with Endeavor would give the combined company leading status in the Permian Basin, the largest U.S. oil field straddling West Texas and New Mexico. Diamondback said it expects the deal to close in the fourth quarter of this year.
2. Musk denies Ukrainian allegations that Russia uses terminals produced by SpaceX
Elon Musk has denied allegations by Ukraine's main military intelligence agency that Russian forces used Starlink terminals produced by SpaceX in occupied areas. “A number of false reports claim that SpaceX is selling Starlink terminals to Russia. This is categorically false,” Musk said Sunday on the social media platform X, formerly known as Twitter, which he also owns. Meanwhile, Musk must testify in an investigation by the U.S. Securities and Exchange Commission into his 2022 acquisition of Twitter, a U.S. judge ordered in a court filing Saturday.
3. Tesla cuts Model Y prices until February
Separately, Telsa (TSLA) announced a temporary price drop via its website on several Model Y cars in the United States through the end of February. The pioneering electric vehicle company has slashed $1,000, or about 2 percent, off its popular Model Y rear-wheel drive and long-range Model Y vehicles. Tesla's ongoing price cuts, aimed at countering growing competition from electric vehicle makers, are putting pressure on its operating margins.
4. AI in focus as Arista and Cadence post earnings
Investments in artificial intelligence will likely be the focus as cloud networking company Arista Networks (ANET) and chip design company Cadence Design Systems (CDNS) report fourth-quarter results after the bell. Investors have rewarded stocks that have benefited from the AI craze this earnings season, with companies like Arm Holdings Plc (ARM) soaring last week after the British chip designer announced a bullish outlook in the face of growing demand for this technology. Shares of Arista rose 3% in premarket trading, while Cadence rose 1%.
5. More than 4,600 job cuts since last May attributed to AI
Since last May, companies have attributed more than 4,600 job cuts to AI, particularly in media and technology, according to outplacement firm Challenger, Gray & Christmas, The Wall Street JournalI reported. The total number of AI-related job cuts is likely higher, as many companies have not explicitly linked job cuts to AI adoption in their layoff announcements. At the same time, the number of professionals who are now using generative AI in their daily professional lives has increased significantly.