Stock futures were narrowly positive early Monday morning, recovering from losses late Friday after a short-lived coup attempt in Turkey.
SoftBank (SFTBY) agreed to buy Apple (AAPL) chip designer ARM Holdings (ARMH) for $32 billion. Hasbro (HAS) and Bank of America (BAC) reported better-than-expected earnings. Netflix (NFLX) and IBM (IBM) are due to report after the market close. And Tesla Motors (TSLA) CEO Elon Musk may finally release his hinted-at "masterplan."
S&P 500 futures were fractionally higher at 7:52 a.m. ET Monday after having dipped about 0.5% Friday night, when Turkish army officers tried to seize power. The S&P 500 closed down 0.1% to 2161.74 on the stock market Friday after hitting a record high Thursday.
Futures also indicated advances for the Dow Jones industrial average and the Nasdaq composite of 0.2% each.
The Turkish lira recovered some of its losses after plunging Friday by the most in several years. The Turkish BIST 100 index tumbled 5.1% intraday as investors mulled the fallout from the failed coup on the economy.
Closer to home, U.S. investors have a busy day ahead.
SoftBank-ARM Deal
ARM Holdings spiked 42% before the open. Japan's SoftBank will buy the U.K. wireless chip designer for $32.2 billion, the companies announced Monday. ARM, whose chip designs are used in the Apple iPhone and most other smartphones, had a $22 billion market cap as of Friday's close. SoftBank shares were flat in premarket trade.
Bank of America
Continuing last week's roll-out of earnings from big banks, Bank of America reported Q2 earnings slipped to 36 cents a share, down from 45 cents a year earlier, but 3 cents above views. Q2 revenue fell 7% to $20.6 billion and narrowly topped views.
BofA shares dipped slightly in premarket action.
Hasbro
Before the market open, Hasbro reported Q2 earnings per share of 41 cents, up 24% vs. a year earlier and 2 cents above Wall Street views. Sales climbed 10% to $878.9 million, or a 12% revenue gain excluding currency impacts.
The toy maker continues to benefit from "Star Wars" and "Frozen" products, both of which are owned by Walt Disney (DIS). Toy rival Mattel (MAT) reports later this week.
Hasbro shares rose 1% in premarket trade Monday. In April, the stock gapped up to a record high after a blowout Q1 earnings report. Since then, shares have moved sideways, aside from the market's short-lived Brexit sell-off. The stock is back above its 50-day moving average, rising 0.3% to 85.50 on Friday.
Hasbro is close to an 88.63 buy point in a flat base consolidation.
IBD's TAKE: Hasbro is forming a possible buy point, but its Relative Price Strength rating is a so-so 68 out of 99. Its Relative Price Strength line, which measures a stock's performance vs. the S&P 500, has been drifting lower for the past month. Here's why investors should look for a rising RS line at a stock's breakout.
Netflix Earnings
Netflix will release second-quarter earnings after Monday's market close. Earnings are expected to fall to 2 cents a share from 6 cents a year earlier, as the internet TV giant focuses on global expansion. Revenue should rise to $2.11 billion from $1.64 billion.
The focus will be on Netflix subscriber growth, following disappointing guidance after its Q1 results. The company said it expects to add 500,000 U.S. streaming customers and 2 million overseas, both down vs. a year earlier. Wall Street also will want to know Netflix's subscriber outlook.
Netflix shares are down 14% so far this year, but they recently retook their 50-day moving average. The stock hasn't been above its 200-day line since its Q1 earnings report.
Other companies reporting after the close include IBM (IBM), Steel Dynamics (STLD), VMWare (VMW) and Yahoo (YHOO).
Tesla Motors
Tesla CEO Musk tweeted on July 10 that he hoped to release a new "masterplan" for Tesla, perhaps as soon as that coming week. He tweeted Sunday that he would release his plan after the SpaceX launch, which took place early Monday morning.
Have to focus on tonight's @SpaceX launch. Will post Tesla (master) product plan afterwards.
— Elon Musk (@elonmusk) July 17, 2016
Later on, after the SpaceX launch, he gave an update.
Bit of a distraction yesterday. Working on plan today.
— Elon Musk (@elonmusk) July 18, 2016
Tesla has faced questions over its Autopilot driver-assistance program following a few crashes that may have involved the self-driving features. The National Highway Traffic Safety Administration is probing a fatal crash, and the Securities and Exchange Commission is reportedly probing the disclosure of that incident.
Still, Tesla shares rallied 1.7% last week, moving back above their 50-day moving average. Shares were fractionally higher in premarket trade Monday.
