It’s going to be a big day for Dow Chemical and DuPont as reports swirl that the chemical firms are considering a $120 billion merger.
Here are the five things you need to know before the opening bell rings in New York:
1. Dow + DuPont: Shares in Dow Chemical and DuPont are soaring by about 8% premarket after the Wall Street Journal and Financial Times reported that the companies are looking to agree a massive merger.
It would be among the largest takeovers of all time, eclipsing the $117 billion beer deal between Anheuser-Busch InBev and SABMiller.
Dupont declined to comment on what it described as “rumors and speculations.”
Dow was not immediately available to comment.
2. Market movers — Yahoo, Smith & Wesson: Shares in Yahoo are rising by about 3% premarket after CNBC reported Tuesday that Yahoo’s board had decided not to sell off its Alibaba stake as previously planned.
Yahoo has a 15% share in Chinese e-commerce giant Alibaba, worth about $30 billion.
Selling that stake could generate a lot of money for Yahoo and its shareholders, but could be subject to a gigantic tax bill of about $10 billion.
The tech pioneer has been lumbering through an attempted turnaround and has been weighing its next steps. Yahoo didn’t immediately respond to CNNMoney’s request for comment.
Shares in gun manufacturer Smith & Wesson are looking weak premarket after the firm reported earnings on Tuesday that showed quarterly sales were up 32% from last year.
While the results were impressive, investor reaction was tepid since the company’s shares have already surged by 126% this year.
Shares in gun stocks such as Smith & Wesson and Sturm, Ruger have rallied in 2015 following mass shootings. Gun fanatics have been buying more firearms as they worry that gun control rules could tighten.
3. Oil prices regain lost ground: Crude oil futures have recovered a bit after hitting recession-era levels below $37 per barrel on Tuesday.
Crude is now trading just below $38 a barrel.
A massive supply glut has wiped out two-thirds of oil’s value after it peaked at roughly $108 a barrel in June 2014.
4. Stock market overview: U.S. stock futures are looking soft and European markets are in negative territory in early trading.
This comes after most Asian markets tumbled on Wednesday and closed in the red.
Tuesday was also a weak day for stocks. The Dow Jones industrial average dipped 0.9%, the S&P 500 dropped 0.7% and the Nasdaq edged down by 0.1%.
5. Earnings: There are a few high-profile retailers reporting quarterly results Wednesday.
Lululemon is reported ahead of the open while Men’s Wearhouse is reporting after the close.
