Inflation is expected to tick lower in September and sandal maker Birkenstock is set to go public on the New York Stock Exchange later today. Here’s what investors need to know today.
1. Economists Expect PPI to Show Slowdown in Wholesale Inflation
Stock futures traded higher in the pre-market ahead of the 8:30 a.m. ET release of the Producer Price Index (PPI), which is expected to show wholesale inflation rose 0.3% in September, at a slower rate than the 0.7% increase in prices the month before, while the core PPI is projected to show a 0.2% climb in prices, down from 0.3% the prior month. Also today, minutes of the September Federal Open Market Committee meeting will be released at 2 p.m. ET. Fed Governor Christopher Waller will speak at 10:15 a.m. ET, Atlanta Fed President Raphael Bostic speaks at 12:15 p.m. ET. and Boston Fed President Susan Collins will speak at 4:30 p.m. ET.
2. Exxon Mobil Buys Pioneer Natural Resources for Nearly $60 Billion
Exxon Mobil (XOM) said it will acquire Pioneer Natural Resources (PXD) for $59.5 billion, or $253 a share, in an all-stock deal. It’s Exxon’s biggest deal since the late 1990s and is expected to close in the first half of 2024, with Pioneer shareholders receiving 2.3 shares of Exxon for every Pioneer share. Exxon shares dropped about 1.8% in pre-market trading while Pioneer shares were up almost 2%.
3. Sandal Maker Birkenstock Sets IPO Price at $46 Per Share
German sandal maker Birkenstock priced its shares in the middle of its anticipated price range at $46 per share in an initial public offering (IPO) that will have the company start trading on the New York Stock Exchange today under the ticker “BIRK.” The company is expected to sell more than 32 million shares, bringing a valuation of around $8.6 billion.
4. HP Shares Gain on Revenue, Earnings Forecast
Shares of computer maker HP (HPQ) traded higher by about 1.6% in the pre-market after the company said it expects to see 2% to 4% growth in long-term annual revenue, along with growth in earnings per share in the high single digit range. In a meeting with analysts, company officials also disclosed it would increase its dividend rate on an annual basis by 5 cents to $1.10 a share.
5. Canadian Auto Workers End Strike Against GM
Workers at General Motors (GM) plants in Canada ended their strike against the automaker after it agreed to similar conditions that the Unifor union reached recently with Ford. The union said that the strike by more than 4,000 workers was on hold ahead of a vote by members to ratify the agreement. Shares of GM traded fractionally higher in pre-market trading.