"Instead, what we do have is quite a bit of moving and shaking in the corporate world. In banking today, regional bank Fifth Third ( Nasdaq: FITB) says it will buy rival Comerica ( NYSE: CMA) in a $10.9 billion, all-stock transaction. If the merger goes through it will create America's ninth largest bank. Fifth Third stock is up 1.5% on the news, and Comerica shares are up more than 17%."
"And in AI news, privately-held OpenAI is teaming up with S&P 500 component company Advanced Micro Devices ( Nasdaq: AMD) in a different way. Every hungry for more artificial intelligence computer chips, OpenAI has struck a deal to buy 6 gigawatt-hours' worth of chips from AMD. In return for OpenAI's business, AMD will grant the AI giant warrants to acquire up to 160 million shares of AMD stock (that's about 10% of the company)."
Day 6 of the government shutdown has halted official economic releases, yet the Vanguard S&P 500 ETF (VOO) is up about 0.3% in early trading. Market movement stems from corporate developments rather than economic data. Fifth Third agreed to buy Comerica in a $10.9 billion, all-stock deal that would form the nation's ninth largest bank; Fifth Third rose 1.5% while Comerica jumped over 17%. The merger could weigh on the S&P 500 ETF because Fifth Third is an S&P component and Comerica is not. Separately, OpenAI struck a deal to buy 6 gigawatt-hours of chips from AMD and received warrants to acquire up to 160 million AMD shares, pushing AMD shares sharply higher.
Read at 24/7 Wall St.
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