Top stock market news for today November 22, 2021

Stock futures ticked higher ahead of the shortened holiday week

US stock futures rose early Monday morning, signaling a positive start for the stock market this week. Optimism about the rising market is heightened by the potential easing measures by the Chinese central bank to support the slowing economy. With the holidays just around the corner, keep in mind that the US market will be closed on Thanksgiving Day. Against the background, President Joe Biden’s nomination for the next Federal Reserve chief is likely to be the biggest market-changing event.

“I really think in the shortened week that will probably be the biggest driver of market action,” said Jeff Schulze, investment strategist at ClearBridge Investments. “If Brainard is nominated as Fed chairman, it would come as no surprise to me to see some near-term volatility. Usually the market is testing a Fed seat.”

Meanwhile, cloud-based telecom company Vonage (NASDAQ: VG) shares rose in pre-market trading after agreeing a $6.2 billion deal to buy by Ericsson (NASDAQ: ERIC). As of 7:08 a.m. ET, Dow, S&P 500 and Nasdaq futures are up 0.30%, 0.32% and 0.98% respectively

Monster Beverage (MNST) Explores Merger Agreement With Constellation Brands (STZ)

energy drink maker sample drink (NASDAQ: MNST) is investigating a merger agreement with Zodiac Signs (NYSE: STZ), according to a report from Bloomberg News. The exact structure of the potential merger is not yet available to the general public. Of course, a deal between these two drink giants could be interesting. But investors should not speculate about such rumours, as it is still unclear whether the deal will eventually materialize.

Despite supply chain challenges, Monster Beverage reported record third quarter sales earlier this month. The maker of energy drinks, who has Coca Cola (NYSE: KO) as its main shareholder, will have to assess whether such a merger could generate any positive synergies. At this time, it is unclear whether such a deal could jeopardize Monster’s exclusive distribution agreement with Coca-Cola. And if so, it could affect Monster’s international growth ambitions.

“I see little synergy between these two companies, as regulators would not welcome drinks that combine caffeine and alcohol. The products produced should use their respective brands, but be aware of the limitations with product formulations– Kenneth Shea, Senior Analyst for Beverage and Tobacco Companies at Bloomberg Intelligence.

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Ford (F), Rivian (RIVN) cancel plans to jointly develop an electric car

Ford (NYSE: F) and Rivian (NASDAQ: RIVN) no longer plan to co-develop an electric vehicle, the companies confirmed Friday evening. The two companies initially announced the development of a joint vehicle when Ford invested in EV startups in 2019. Now that the plan has been scrapped, some electric vehicle investors are questioning the impact of the decision.

According to Ford CEO Jim Farley, part of the split was due to the complexity of their hardware and software merging. In light of this, the company also reiterated that such a decision has not affected their relationship. Ford continues to believe in the company’s future and retains a 12% stake in the EV start-up. The legendary automaker aims to produce 600,000 vehicles per year by the end of 2023. In addition, Ford has several interesting products, including the Mustang Mach-E SUV and the F-150 Lightning pickup. At least the old dog seems to be learning new tricks quickly.

The decision to cancel the joint development was mutual, according to Rivian. “As Ford has scaled up its own EV strategy and the demand for Rivian vehicles has grown, we have jointly decided to focus on our own projects and deliveries. Our relationship with Ford is an important part of our journey, and Ford will continue to be an investor and ally on our shared path to an electrified future,the company said in an email statement.

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Zoom (ZM) reports profit after closing bell

Zoom video communication (NASDAQ: ZM) will report its profit after the market closes today. There’s no question that ZM stock has been under pressure on the road to that announcement. Investors are less enthusiastic about the company’s short-term growth as more people return to the office. In addition, increased competition from other players in the video conferencing space may make some investors nervous. In light of all of this, it should come as no surprise that ZM stock continues to come under significant selling pressure.

As of the second quarter, revenue increased 54% year-over-year to $1.02 billion. Now Wall Street expects the same level of revenue when it reports today, with non-GAAP earnings of $1.07 to $1.08 per share. It’s also worth keeping an eye on how quickly customers are taking advantage of new offerings like Zoom Phone, the company’s cloud-based telephony arm. In addition, investors will also focus on the company’s operating margin. The profitability measure was 25% of sales in the second quarter. And investors hope to see a modest boost later in the day.

Admittedly, the pandemic acted as a huge catalyst for the company in 2020. But it’s normal for investors to be concerned about its ability to sustain the impressive growth rate. However, the company is reportedly looking to diversify its revenue stream by entering the contact center market. Nevertheless, in order for ZM stock to recover to its previous high, Zoom will need to provide strong prospects for its company. This also applies to the new initiatives, which are crucial for the growth and preservation of the ecosystem.

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Earnings to watch in the stock market today

If investors worried that inflation, supply chain shortages and labor would weigh on corporate profits, they’ve been wrong so far. And bullish investors continue to benefit from strong corporate earnings to date. As the market enters the short holiday week, there is no shortage of companies reporting their earnings. In pre-sale we have Cerence (NASDAQ: CRNC), Niu Technologies (NASDAQ: NIU), Avaya (NYSE: AVYA), and Zhihu (NYSE: ZH), to name a few.

Alternatively, for those anticipating earnings after the closing bell, there are also notable tech names reporting. Among them are Zoom video communication, Agilent Technologies (NYSE: A), Keysight Technologies (NYSE: KEYS) and Arrowhead Pharmaceuticals (NASDAQ: ARWR). Whether it’s following company news, tracking earnings or speculating about the next Fed chairman, there’s plenty to keep you busy as we usher in the holiday-shortened week.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.