Positive news on the diplomatic front helped send stocks sharply higher in premarket trading on Tuesday morning, as reports signaled that Russia was pulling back some of its armed forces from regions near Ukraine. As of 8 a.m. ET, futures on the Dow Jones Industrial Average (^DJI -0.98%) were up 411 points to 34,882. S&P 500 (^GSPC -0.46%) futures had risen 67 points to 4,461, while Nasdaq Composite (^IXIC -0.64%) futures were up 294 points to 14,547.
Many individual stocks moved higher in response to the news, but there were some particularly notable movers in the premarket session. Virgin Galactic Holdings (SPCE -1.09%) made an announcement that should lead to increased revenue, but the substantial move higher for its stock price was still small in comparison to the shares of a company that became the latest in the long series of stocks getting a boost from takeover bids. Below, you'll learn more about Virgin Galactic's latest move and then find out which stock is leading the market higher Tuesday.
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Virgin Galactic opens its ticket window again
Virgin Galactic Holdings shares were up nearly 12% in premarket trading on Tuesday morning. The space tourism company has suffered during a period of widespread skepticism about high-growth stocks in general, but today's news signaled its intentions to firm up its long-term plans.
Virgin Galactic preannounced that it would open ticket sales to the general public as of Wednesday, Feb. 16. The move comes amid a broader unveiling of Virgin Galactic as a consumer business, complete with the creation of a new brand identity and an in-depth description of what comes as part of the package that would-be astronauts will receive.
For a price tag of $450,000 -- including a $150,000 upfront initial deposit -- customers will get preflight training for several days at Virgin Galactic's Spaceport America facility in New Mexico. The company plans to offer upscale accommodations for customers preparing for flight, as well as other unique experiences tailored to get tourists ready for their journey. The 90-minute flight includes the initial climb to altitude in Virgin Galactic's carrier mothership, followed by the rocket launch of the spaceship featuring several minutes of weightlessness before returning to Earth.
CEO Michael Colglazier indicated that he hopes to have 1,000 customers on board as Virgin Galactic plans to start commercial service later in 2022. For many, the commercial launch has been a long time coming, and shareholders will want to see just how successful the ticket rollout is before deciding about their views on Virgin Galactic's long-term prospects.
A Towering buy
Even bigger news came out of the semiconductor industry, with Tower Semiconductor (TSEM 1.39%) seeing a greater-than-40% rise in its stock price. The analog chip foundry got an offer it couldn't refuse from a giant of the business.
Intel (INTC 1.77%) and Tower announced that Intel would acquire the semiconductor foundry for $5.4 billion. The terms of the deal will give Tower shareholders $53 per share in cash, putting a 60% premium on the stock above its closing price from Monday.
Tower offers Intel expertise in certain specialty chip-making technology, including radio-frequency, power, and sensor chips. Tower's infrastructure of foundry facilities and design automation capabilities will also help complement Intel's own efforts to meet the soaring demand for semiconductors in the current global shortage.
Intel has recently fought back in its efforts to regain its leadership position in the chip industry, and ensuring it retains the ability to make its own semiconductor products is a key element of its strategic plans. Buying Tower should shore up its capacity and affirm its commitment to moving forward aggressively in an increasingly competitive field.
