5 things to know before the stock market opens on Monday February 7

Here are the most important news, trends and analysis that investors need to start their trading day:

1. Wall Street looks higher after S&P 500, Nasdaq’s best weeks in 2022

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. equity futures edged higher on Monday after the S&P 500 and Nasdaq Composite recorded their best weeks of the year, boosted by Friday’s best one-day gain since 2015 following the strong stock market report. Amazon’s quarterly results. The Nasdaq, however, remained in a correction. The Dow bucked Friday’s uptrend, closing lower. But the 30-stock average also posted a gain for the week. Beaten tech stocks were able to rebound on Friday despite the better-than-expected January jobs report, pushing the 10-year Treasury yield to nearly 1.94%. The benchmark yield fell on Monday, but was still above 1.9%.

  • Key inflation data is released on Thursday, with consumer prices in January expected to rise 7.3% year-on-year. Earnings are slowing down a bit after last week’s wild ride. Dow stock Disney is expected to report quarterly results after the closing bell on Wednesday.

2. Low-cost airlines Frontier and Spirit agree to merge in $6 billion deal

Spirit Airlines plane seen at Los Angeles International Airport.

Alex Tai | SOPA Images | Light Rocket via Getty Images

Frontier Airlines and Spirit Airlines, the two largest low-cost airlines in the United States, have agreed to merge, creating what would become the nation’s fifth largest airline. The boards of both companies approved the deal over the weekend, before the CEOs of both airlines announced the deal in New York 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 own the remaining 48.5% . The deal implies a value of $25.83 per Spirit share, which would represent a premium of 19% over the value of Spirit shares at the end of last week. Shares of Spirit rose 12% and Frontier Group was down 3% in Monday’s premarket.

3. Peloton soars on Amazon reports, Nike could be potential buyers

A Peloton stationary bike for sale in the company’s showroom in Dedham, Massachusetts, U.S., Wednesday, February 3, 2021.

Adam Glanzman | Bloomberg | Getty Images

Shares of Peloton, which has been battered in recent months, soared 30% in Monday’s premarket after the Wall Street Journal reported on Friday that e-commerce giant Amazon had approached the company about a deal potential. Other potential suitors are swirling around, the Journal said, but no deal is imminent and there may not be any at all. The Financial Times reported separately that sneaker maker Nike is evaluating a bid for Peloton. Nike has yet to speak with the maker of wearable fitness equipment, the FT added. Peloton is not yet conducting a formal sales process, but there is genuine interest in the company, a person familiar with the talks told CNBC.

4. Spotify CEO apologizes after clips show Joe Rogan using the N-word

This photo taken in Toulouse, southwestern France, on January 31, 2022 shows a screen displaying the Joe Rogan podcast and a smartphone displaying the Spotify logo.

Lionel Bonaventure | AFP | Getty Images

Spotify shares, also recently ravaged, fell more than 1% before market, with CEO Daniel Ek apologizing to the audio streamer’s workers on Sunday for podcaster Joe Rogan’s past racist language. “I want to clarify something – I don’t believe silencing Joe is the answer,” said Ek, whose company reportedly paid $100 million to exclusively host Rogan’s podcast. Rogan apologized on Saturday after Grammy-winning singer-songwriter India Arie posted clips of him using the N-word on some past episodes as she pulled his music from Spotify in protest. Other musicians recently removed their music from Spotify, saying Rogan’s show was spreading misinformation about the Covid-19 vaccine.

5. Chip shortage forces Ford to cut production of F-150 and other vehicles

Ford Motor Co. signage at the Washington Auto Show in Washington, DC on January 21, 2022.

Al-Draco | Bloomberg | Getty Images

Ford shares fell nearly 1% in premarket after the automaker confirmed late Friday that it was cutting production this week on the Ford Bronco and Explorer SUVs; the Ford F-150 and Ranger pickup trucks; the Ford Mustang Mach-E electric crossover; and the Lincoln Aviator SUV at factories in Michigan, Illinois, Missouri, and Mexico due to an ongoing global shortage of semiconductor chips. The cuts come after Ford significantly missed earnings estimates due to lower-than-expected production tied to supply chain issues, which sent shares tumbling 9.7% on Friday.

— The Associated Press and Reuters contributed to this report. Register now for the CNBC Investing Club to follow Jim Cramer’s every stock market move. Follow the evolution of the market like a pro on CNBC Pro.

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