5 Things to Know Before the Stock Market Opens

Macy’s (M) shares are surging in premarket trading after the investor group that was rebuffed in December boosted its bid by around $1 billion, Super Micro Computer (SMCI) is soaring as the maker of AI-enabled servers prepares to join the S&P 500, Reddit is targeting a valuation of up to $6.5 billion in its highly anticipated IPO, the U.S. is looking to bar China from buying oil from its reserves, and Japan’s Nikkei tops 40,000 for the first time. Here’s what investors need to know today.

1. Macy’s Soars as Arkhouse, Brigade Raise Bid to $24 Per Share

Macy’s (M) shares surged more than 18% in premarket trading after the investor group whose previous offer for the embattled department-store chain was rejected raised its bid by nearly $1 billion. Real estate-focused Arkhouse Management and asset manager Brigade Capital Management said Sunday that they are now offering to acquire the Macy’s stock they don’t already own for $24 a share, valuing the retailer at $6.6 billion, up from December’s $21-per-share offer that valued it around $5.8 billion. The investor group’s bid is a 33% premium over the shares’ $18.01 close on Friday.

2. Super Micro Surges on S&P 500 Inclusion News 

Shares in Super Micro Computer (SMCI) soared 13% in premarket trading Monday after an announcement late Friday that it will be included in the large-cap S&P 500 Index starting March 18. The San Jose, Calif., company, which makes artificial intelligence (AI) servers, has seen its market value surge to more than $50 billion amid the frenzy for anything linked to the technology. Super Micro and Deckers Outdoor Corp. (DECK) will replace home-appliances maker Whirlpool (WHR) and regional bank Zions Bancorporation (ZION) in the index. Deckers shares rose 6% in early trading, while Whirlpool and Zion were both about 2% lower.

3. Reddit Plans IPO Valuation of Up to $6.5B, $31-$34 Price

Reddit is targeting a valuation of up to $6.5 billion in its highly anticipated IPO, according to The Wall Street Journal, well below the $10 billion level the social-media company was worth a few years ago. It plans to target a price range of $31 to $34 a share, the report said. Reddit’s IPO is unusual because individual investors and the most loyal users of its message boards will have the chance to buy shares in its IPO. Typically, IPO candidates tend to sell stock to just large investors like mutual funds or hedge funds when making their stock-market debut.

4. US Funding Bill Blocks China From Buying Oil Reserves 

China would be barred from buying oil from the U.S.’s emergency stockpiles under a measure in the funding legislation unveiled by congressional leaders on Sunday. The issue of Chinese buying of U.S. oil reserves has been controversial since 2022, when President Joe Biden announced a sale of 180 million barrels of oil from the Strategic Petroleum Reserve to a Houston-based subsidiary of a Chinese-state oil firm to tamp down soaring gasoline prices following Russia’s invasion of Ukraine. Separately, thousands of delegates from across China are gathering in Beijing this week for the start of the country’s most prominent annual political event, the so-called “two sessions,” where the leaders will try to boost confidence about the country’s slowing economy.

5. Japan’s Nikkei Closes Above 40,000 for First Time 

Japan’s Nikkei 225 closed above the 40,000 mark for the first time on Monday, after the S&P 500 and the Nasdaq Composite ended at record highs on Friday. Foreigners have been piling into Japanese shares, gaining confidence from Warren Buffett’s endorsement of big trading firms, while funds have been switching out of investing in China’s slowing economy into Japan. AI euphoria hasn’t left Japan untouched, with investors buying into chip-related shares seen as benefiting from investments into the technology. Shares like chip-maker Renesas Electronics closed up almost 5% Monday.

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