Microsoft (MSFT) and Barnes & Noble (BKS) announced a partnership today that would create a new subsidiary to house the digital and college businesses of BKS, as well as include a Nook application on Windows 8. BKS is 100% higher in premarket trade – jumping from $13.68 close on Friday to $27.36. MSFT is making a $300 million investment at a 17.6% stake of the subsidiary, valuing the company at $1.7 billion. This is a significant increase in value from a March offer from private equity that would have valued the digital and college business at $900 million.
Overnight, equity futures are slightly lower on the confirmation that Spain is officially in its second recession since 2009. This is likely to do little – as it is not really news so much as the confirmation of a long-known story. With unemployment at nearly 25%, it would be hard for any economy to experience growth. Nonetheless, it might cause some pause in the recent strength of U.S. equity markets. S&P front-month futures remain below 1,400, and are lower by 3 points this morning.
Gold futures are slightly lower on the session. Bloomberg reported this morning that Gold is experiencing its third consecutive monthly decline – the most since three consecutive months in 2000. An interesting stat, I suppose, but considering that prices have increase 5 fold in the meantime and that Gold futures are up 6% this year, it holds less weight.
The Treasury market is relatively flat ahead of the official open. 30-year bond and 10-year note prices crept higher, by 0.2% and 0.1% respectively. The US$ Index is 0.15% stronger, as the EUR/USD lost 0.3% overnight.
The NYSE Euronext (NYX) reported earnings this morning, missing EPS expectations of $0.49 by $0.02. Profit for the quarter was down 44%, a result of charges incurred during the merger and lower trading volumes.