Stock Market Today: Dow Jones, S&P 500 Surge; Broadcom To Acquire VMware For $61 Billion

Stock Market Today Mid-Morning Updates

On Thursday, the Dow Jones Industrial Average is up by 400 points and up by 2.8% for the week. It is, however, in the midst of its first eight-week losing streak since the 1920s. Nvidia (NASDAQ: NVDA) is in focus today after it reported lighter-than-expected guidance for its current quarter. However, the company reported earnings per share of $1.36 and a revenue of $8.29 billion, both exceeding expectations.

Shares of Dollar General (NYSE: DG) and Dollar Tree (NASDAQ: DLTR) are up by over 15% and 18% respectively after posting a solid quarter. Furthermore, Dollar General also increased its same-store sales forecast as more shoppers flock to the company’s discount stores as inflation bites into the economy. Snowflake (NYSE: SNOW) is down by over 10% on today’s opening bell despite posting a better-than-expected profit and revenue for the quarter. The company did warn that some of its customers are spending more cautiously because of an uncertain macroeconomic environment.

Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are up by 0.06% today while Microsoft (NASDAQ: MSFT) is also up by 0.78%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading higher by 1.59% and 2.51% respectively on Thursday. Among the Dow financial leaders, Visa (NYSE: V) is up by 1.31% while JPMorgan Chase (NYSE: JPM) is also up by 1.52%

Shares of EV leader Tesla (NASDAQ: TSLA) are up by 1.71% on Thursday. Rival EV companies like Rivian (NASDAQ: RIVN) are up by 5.63%. Lucid Group (NASDAQ: LCID) is also up by 3.78% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading higher today. 

Dow Jones Today: U.S. Treasury Yields Hovers Around 2.7% After Fed’s May Meeting Minutes Released

Following the stock market opening on Thursday, the Dow, S&P 500 and Nasdaq are all trading higher at 1.36%, 1.34% and 1.45% respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is up by 1.47% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also up by 1.38%. 

The benchmark 10-year U.S. Treasury yield currently trades at around 2.7% on Thursday morning. The muted movement in Treasury yields comes after the release of the Fed’s May meeting minutes. In it, the central bank officials backed rate hikes of 50 basis points in June and July to combat inflation. They did however appear to leave policymakers the flexibility to possibly change the approach in September. This was a step back from the aggressive stance that the Fed has taken over the last few months, providing some degree of relief to investors.

[Read More] Top Stock Market News For Today May 26, 2022 

VMware In Focus Following Announcement Of $61 Billion Takeover By Broadcom

Among the companies turning heads in the stock market today would be VMware (NYSE: VMW) and Broadcom (NASDAQ: AVGO). On the whole, this likely stems from the duo confirming earlier mentions of an acquisition by Broadcom. Simply put, Broadcom is officially acquiring VMware via a $61 billion cash-and-stock transaction. This information comes as both companies reported their latest quarterly earnings respectively earlier today. More importantly, should the acquisition go smoothly, it would mark one of the largest tech acquisitions to date. In detail, this would be just behind Microsoft’s (NASDAQ: MSFT) $69 billion takeover of Activision Blizzard (NASDAQ: ATVI).

Clarifying the overall merits of the deal is Broadcom CEO Hock Tan. He states, “Building upon our proven track record of successful M&A, this transaction combines our leading semiconductor and infrastructure software businesses with an iconic pioneer and innovator in enterprise software as we reimagine what we can deliver to customers as a leading infrastructure technology company. We look forward to VMware’s talented team joining Broadcom, further cultivating a shared culture of innovation and driving even greater value for our combined stakeholders, including both sets of shareholders.” With a move of this scale, Broadcom appears to be firing on all cylinders.

Also in the press release, VMware, under Broadcom, will offer existing enterprise clients greater flexibility. This will be in the form of solutions that address the complex IT challenges of today. As such, VMW stock and AVGO stock are gaining traction now.

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Twitter Stock Gains After Filing Reveals Elon Musk’s Increase Of Takeover Commitment

Shares of Twitter (NYSE: TWTR), the microblogging social media platform are making the rounds once again in the stock market. Evidently, TWTR stock is now gaining by over 4% at today’s opening bell. For the most part, the current movement in the company’s shares is thanks to an update from Tesla (NASDAQ: TSLA) CEO Elon Musk. This would be regarding the CEO’s $44 billion acquisition of Twitter. According to an amended 13D filing, Musk’s aggregate equity commitment is now up to $33.5 billion. 

At the same time, Musk also notes in the filing that he is having active discussions with prominent Twitter shareholders. Notably, Twitter founder Jack Dorsey is among these shareholders. According to the filing, these discussions will serve to raise Elon Musk’s proposal to them. The proposal involves the contribution of existing shares to retain a private equity investment in the firm. This would be after a successful takeover sees Twitter being taken private by the Tesla CEO. Also, Musk will be serving as the temporary CEO of Twitter for the first few months following the completion of the deal. With another update on this, TWTR stock would be gaining attention in the stock market now.

Even so, it is important to note that Twitter, alongside its social media peers, are experiencing turbulence on the operational end. Namely, this is apparent as the likes of Snap (NYSE: SNAP) recently noted that it would fall short of its financial goals amidst growing inflationary pressures. Also, according to court documents posted yesterday, Twitter is paying $150 million to settle allegations over user data security and privacy concerns. Regardless, with the latest news from Musk’s end, investors will likely be keeping an eye on TWTR stock today.

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