Stock Futures Mixed Following Big Rally
Stocks futures were trading mixed Monday after the sharp rally in Friday’s regular session, and ahead of a report that’s expected to show a slowdown in U.S. manufacturing.
Futures for the Dow Jones Industrial Average were down 12 points, or 11.09 points below fair value, at 12,796. Futures for the S&P 500 were up by 0.6 points, or 0.74 points above fair value, at 1357. Futures for the Nasdaq 100 were down 1 point, or 0.92 points below fair value, at 2609.
U.S. stocks staged a huge rally Friday as investors cheered the progress being made at the latest Europe Union summit to address the region’s debt crisis.
“With the summit safely out of the way we can raise our minds from the gutter of European politics to the pure atmosphere of economics,” Paul Donovan, a global economist at UBS, said in a note.
The Institute for Supply Management is expected to report at 10 a.m. EDT that its manufacturing index fell to 51.5 in June, according to Briefing.com , from 53.5 in May. Readings above 50 indicate growth.
The Commerce Department is expected to report at the same time that construction spending rose 0.2% in May, according to Briefing.com after increasing 0.3% in April.
“The S&P 500 is now set up for a measured move based on the completed inverse head-and-shoulders formation that equates to an advance to 1,400 plus,” said Mark Arbeter, chief technical strategist of S&P Capital IQ, in a note. “However, fundamentals argue for a more challenging ride ahead. Either the recent euphoria will dissipate early in the Q2 EPS reporting season, should investors see that the altered flow of bailout funds to Spanish banks won’t stem the ebbing tide of global economic growth and U.S. corporate earnings expansion, or the rally will continue to gather converts as investors see that, once again, corporate management was successful in guiding expectations unrealistically low.”
The FTSE in London was rising 0.53% and the DAX in Germany was gaining 0.93%. Hong Kong’s Hang Seng index was closed for the day. The Nikkei in Japan finished down 0.04%.
August crude oil futures were falling $1.61 to $83.35 a barrel. August gold futures were shedding $12.40 to $1,591.80 an ounce.
The benchmark 10-year Treasury was up 3/32, diluting the yield to 1.643%, while the dollar was up 0.16%, according to the dollar index.
Bristol-Myers Squibb (BMY) is purchasing diabetes drugmaker Amylin Pharmaceuticals (AMLN) in a deal valued at about $7 billion.
The companies said on Friday that Bristol-Myers would pay $31 a share in cash for San Diego-based Amylin. The deal includes Amylin’s net debt and a payment obligation to Eli Lillybringing the total value of the transaction to about $7 billion, the companies said.
The purchase price offers a 9.9% premium of to Amylin’s closing share price Friday of $28.20.
Shares of Amylin rose 8.94% in premarket trading Monday to $30.72.
Barclays (BCS) said Monday its chairman has resigned.
Marcus Agius departs following the bank’s $453 million settlement of an investigation into alleged interest rate manipulation.
Regulators in the U.S. and the U.K. alleged that Barclays had submitted false data for setting the London interbank offered rate, or Libor, between 2005 and 2009. Agius has been chairman at Barclays since the beginning of 2007.
Barclays shares rose 3.79% in premarket trading Monday to $10.69.
Technology distributor Ingram Micro (IM) said Monday that it agreed to acquire wireless device distributor BrightPoint (CELL) for $840 million, including debt.
The offer of $9 a share is a 66% premium to BrightPint’s closing price Friday of $5.41.
Shares of BrightPoint jumped 61.18% in premarket trading Monday to $8.72.
Germany’s Linde agreed to buy Lincare Holdings (LNCR) for about $3.8 billion.
Under the deal, Linde will pay $41.50 a share for Lincare, a leader in the U.S. home respiratory market.
Lincare shares closed Friday at $34.02.
Shares of Lincare climbed 19.93% in premarket trading Monday to $40.80.
Apple (AAPL) paid $60 million to Shenzhen Proview Technology to settle a dispute in China over ownership of the iPad name, a court announced Monday, according to a report from The Associated Press.
The deal removes a potential obstacle to sales of the iPad in China, a key market.
Apple shares ticked up $1.25, or 0.21%, in premarket trading Monday to $585.25.