Google Buys Waze, Apple Introduces Radio Service: Morning Buzzers
U.S. stock futures climbed this morning, showing the biggest two-day gain for the S&P 500 since January, following a report that showed the Japanese economy has grown more than previously expected.
Futures as of 8:30 a.m.: DJIA:+0/18% S&P 500: +0.22% NASDAQ: +0.18%
Here’s your cheat sheet to what’s buzzing on Monday morning:
Google (NASDAQ:GOOG) is reportedly purchasing mobile traffic app company Waze for $1.1 billion. The deal will give Google an advantage in the competitive realm of mobile mapping, and keep the company out of the hands of rivals Apple and Facebook (NASDAQ:FB). Waze, which is currently a free app available on iPhone or Android devices, is different from other mobile mapping options because it incorporates data from its users, allowing it to give highly accurate and useful travel information. Google’s purchase of the Israeli start-up is also a defensive move, as Waze would compete with Google Maps.
Apple (NASDAQ:AAPL) is expected to introduce its new iOS, a radio service, and new laptops at its annual developer conference this week. Apple is hoping that its radio service will expose more people to streaming Internet radio, just as iTunes introduced consumers to the concept of digital music. The radio service, like Pandora (NYSE:P) and Spotify, is expected to be free and ad-supported. The new iOS will be the first developed by Apple’s new hardware designer, Jonathan Ive.
IHS (NYSE:IHS) is buying R.L. Polk, which operates the used vehicle history service Carfax, for $1.4 billion. IHS said that the deal would help the business information and analytics firm expand into the auto industry by complimenting IHS’s Automotive products. Polk has about $400 million in annual revenue and also has a division that helps business customers predict and analyze performance.
Elan has rejected the latest offer from Royalty Pharma. Irish drug maker Elan believes the U.S. investment firm is undervaluing the company and its Tysabri multiple sclerosis drug. Elan’s board unanimously rejected the $6.7 billion offer. “Royalty Pharma’s revised offer continues to grossly undervalue Tysabri,” Elan’s board said in a statement.
McDonald’s (NYSE:MCD) reported that sales at stores open at least 13 months have risen 2.6 percent, up from analysts’ predictions of 1.9 percent. The Dollar Menu and breakfast items drove U.S. business. The world’s largest restaurant chain has released several new items in the past year to help draw Americans in, while also focusing on more aggressive, menu-centered advertising in the U.S.