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DJIA Futures: +71 (+0.2%)

SPX Futures: +23 (+0.5%)

NASDAQ Futures: +126 (+0.8%)

Good morning friends!

Futures are rising as traders attempt to shake-off last week’s loss.

Let’s get right to it!

Qualcomm Jumps On Apple Chip Deal

Qualcomm (QCOM) shares are up 5.3% ahead of the open after announcing a new chip agreement with Apple (AAPL) this morning. 

Qualcomm said today it will supply Apple with 5G modems for smartphones through 2026. 

That’s much longer than Qualcomm’s previous expectation for Apple to switch to an internally developed 5G modem starting in 2024.

The continued sales to Apple are expected to boost Qualcomm’s handsets segment. 

About 21% of the company’s fiscal 2022 revenue came from Apple sales. 

By 2026, Qualcomm only expects to supply 20% of the modems Apple needs.

Hostess Soars On J.M. Smucker Takeover Announcement

Hostess Brands (TWNK) shares are rallying 19.1% in premarket trade after J.M. Smucker (SJM) agreed to buy the company. 

J.M. Smucker will acquire Hostess for $34.25 per share in a cash and stock transaction. 

The deal values Hostess at $5.6 billion. 

The transaction has already been unanimously approved by both company’s boards and is expected to close in the third quarter of J.M. Smucker’s current fiscal year, ending April 30, 2024.

Tesla Jumps On Morgan Stanley Upgrade

Tesla (TSLA) shares are up 6.6% ahead of the open after the stock was upgraded by Morgan Stanley analyst Adam Jonas on Sunday.

Jonas upgraded the stock to Buy from Hold and raised his price target to $400 a share from $250 a share. 

He called Tesla his top pick and cited autonomous driving as the reason. 

Jonas wrote, “The autonomous car has been described as the mother of all AI projects. In its quest to solve for autonomy, Tesla has developed an advanced supercomputing architecture that pushes new boundaries in custom silicon and may put Tesla at an asymmetric advantage in a $10 trillion total addressable market.” 

Meta Is Developing AI System

Meta Platforms (META) shares are resign 1.4% in premarket trade following a Wall Street Journal report the company is developing a new AI system. 

The Journal reported Sunday that Meta is working on a system as capable as OpenAI’s most advanced model. 

It’s also expected to be more powerful than the AI software it released with Microsoft (MSFT) two months ago, Llama 2.

Meta is reportedly planning for the new AI model to be ready next year.

The report said the company is currently building up data centers and acquiring more Nvidia (NVDA) H100 chips. 

CEO Mark Zuckerberg is reportedly pushing for the model to be open-sourced, which differs from its main competitors in the AI space.

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