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US stock futures flat; focus on oil, Yahoo bid
Reuters: [2008-05-19 12:15:00]
LONDON, May 19 (Reuters) - U.S. stock futures were flat on Monday, as oil prices remained stubbornly high, while the technology sector could get a lift from the latest twist in Microsoft's <MSFT.O> pursuit of Yahoo <YHOO.O>.
By 0950 GMT June Dow Jones futures <DJM8> were down 0.1 percent, while Standard & Poor's 500 futures <SPM8> were down 0.04 percent and Nasdaq 100 futures <NDM8> were down 0.1 percent in a light day for both earnings and economic data.
The indicative Dow Jones index <.DJII> was down 0.8 percent.
Microsoft said on Sunday it proposed an alternative deal to Yahoo rather than a full acquisition, but the move was unlikely to win favour with financier Carl Icahn, a person familiar with his thinking said.
Yahoo shares were up 3.7 percent from their last close in Frankfurt, at 18.40 euros <YHOO.F>, while Microsoft eased 0.7 percent <MSFT.F>.
Oil hovering just shy of $126 a barrel could give the energy sector a boost later, although data last week showed consumer sentiment fell to its lowest in 28 years in early May, driven in part by concern about inflationary pressures.
"It seems the markets are looking a little directionless at the moment, mixed messages from leading figures about the state of the economy in the U.S. is causing uncertainty within the markets," said Claire Collingwood, a trader at CMC Markets, in a note.
"We could see this continue into the early part of this week as a lack of economic and corporate data could leave the markets hunting for some direction. The ongoing saga with Microsoft and Yahoo has the potential to move markets."
On Friday, the Dow Jones industrial average <.DJI> slipped 5.86 points, or 0.05 percent, to end at 12,986.80. But the Standard & Poor's 500 Index <.SPX> inched up 1.78 points, or 0.13 percent, to 1,425.35. The Nasdaq Composite Index <.IXIC> dropped 4.88 points, or 0.19 percent, to 2,528.85.
Also within the technology sector, Facebook founder and CEO Mark Zuckerberg stressed his company's independent spirit on Monday, after a report the social networking site might be sold to Microsoft, which is hunting for ways to beef up its Internet business.
Microsoft already has a small stake and the Wall Street Journal said this month the company, having failed in its $47.5 billion bid for Yahoo, had approached Facebook to gauge its interest in a full takeover.
Dell Inc. <DELL.O>, the world's second-largest personal computer maker, said on Monday it expected to continue to grow several times above the industry's growth rates in Asia and emerging markets, as demand remained robust.
Dell shares were up 2 percent from their last close in Frankfurt at 13.71 euros <DELL.F>.
Diversified manufacturer Manitowoc <MTW.N> has increased its offer for British kitchen equipment maker Enodis <ENO.L> to 1.08 billion pounds ($2.1 billion) to trump a rival offer from Illinois Tool Works <ITW.N>. (Reporting by Amanda Cooper; editing by Sue Thomas)
((amanda.cooper@thomsonreuters.com; Reuters messaging amanda.cooper.reuters.com@reuters.net; +44 207 542 3424))
Keywords: MARKETS STOCKS US EUROPE
U.S. futures signal upbeat start; Yahoo rallies
Reuters: [2008-05-16 12:47:00]
By Amanda Cooper
LONDON, May 16 (Reuters) - U.S. stock index futures edged up on Friday, suggesting a positive start to trade on Wall Street ahead of data on housing and consumer sentiment.
Yahoo <YHOO.O> said late on Thursday it had struck an advertising partnership deal with Britain's WPP Group <WPP.L> that will let WPP buy ads on Yahoo's online ad exchange.
Yahoo said the deal would first involve WPP units GroupM and 24/7 Real Media and its shares were trading up 1.3 percent from their last close in Frankfurt at 17.90 euros <YHOO.F>. The stock was the most actively traded stock among major U.S. companies quoted in Germany.
With a light corporate calendar, data on housing starts and early May consumer sentiment will likely provide the focus at least for early trading.
By 1010 GMT June Dow Jones futures <DJM8> were up 0.19 percent, while Standard & Poor's 500 futures <SPM8> were up 0.21 percent and Nasdaq 100 futures <NDM8> were up 0.2 percent. The Reuters/University of Michigan index of consumer sentiment is due at 1355 GMT.
The index is expected to have fallen to 62.0 in early May from 62.6 in late April, making this the worst reading since March 1982, when the economy was plagued by slow growth and high inflation.
But with stocks having performed fairly strongly this week, a negative reading could have limited impact on the market.
"The market seems to be shrugging off all this negatgive news. If it came in as expected, even though it's bad, I think there will be a limted negative reaction by the market," said IG Index chief markets analyst David Jones.
"Housing starts could be be interesting, that one has got potential for un upset again, if it comes in worse than expected, but at the moment we're expecting another strong start (on Wall Street)," he said.
On Thursday, the Dow Jones industrial average <.DJI> shot up 94.28 points, or 0.73 percent, to end at 12,992.66. The Standard & Poor's 500 Index <.SPX> rose 14.91 points, or 1.06 percent, to 1,423.57. The Nasdaq Composite Index <.IXIC> climbed 37.03 points, or 1.48 percent, to close at 2,533.73.
The S&P is on track for a 2.5 percent gain this week, its best week in a month, while the Nasdaq is on course for a 3.6 percent rise, also its best in a month.
TECH STOCKS SHINE
Tech stocks featured among the most actively traded in Europe on Friday. Intel <INTC.O> rose 1.9 percent from its last close in Frankfurt to 16.10 euros <INTC.F>, while Dell Inc <DELL.O> rose 1.2 percent to 13.40 euros <DELL.F> and Cisco Systems <CSCO.O> shares rose 0.8 percent from their previous close in Germany to 17.09 euros <CSCO.F>.
Among financials, JPMorgan Chase & Co <JPM.N> expects to liquidate or spin off much of the asset management arm of Bear Stearns Cos Inc <BSC.N> after it takes over Bear next month, people familiar with the situation said Thursday.
Bear Stearns Asset Management (BSAM), which during the past year generated more bad news than revenues, has about 400 employees and managed $39 billion in investments at the end of February.
On Monday, JPMorgan Chief Executive Jamie Dimon told a UBS investor conference he expected the bank would close down "big parts of Bear's asset management business".
JPMorgan shares were quoted up 1.8 percent from their previous close in Frankfurt, although on no volume.
Fannie Mae <FNM.N> is expected to announce on Friday that it is getting rid of a policy that requires higher downpayments on home mortgages in areas where home prices are dipping, the Wall Street Journal reported.
Fannie Mae was not immediately available for comment.
Fannie Mae shares were indicated up 1.2 percent in Frankfurt, although no volume had changed hands.
In a light corporate calendar, Abercrombie & Fitch <ANF.N> reports first-quarter earnings. (Editing by Louise Ireland) ((amanda.cooper@thomsonreuters.com; Reuters messaging amanda.cooper.reuters.com@reuters.net; +44 207 542 3424))
Keywords: MARKETS STOCKS US EUROPE
US retailers in focus, Wall St set for modest rise
Reuters: [2008-05-15 11:42:00]
LONDON, May 15 (Reuters) - Wall Street looked set for a modest gain at the start on Thursday with the focus on earnings from key retailers JC Penney <JCP.N> and Nordstrom <JWN.N> along with tech giant Hewlett-Packard <HPQ.N>.
U.S. stock index futures for the S&P 500 <.SPX> <SPM8>, Dow Jones industrial average <.DJI> <DJM8> and Nasdaq 100 <.NDX> <NDM8> were 0.1 to 0.2 percent higher.
Peter Dixon, UK economist at Commerzbank, said investors would be interest to see how the JC Penney results compared with Wal-Mart Stores <WMT.N>, whose latest quarterly profit was up 7 percent.
"The question really is are consumers downshifting, i.e. away from Penney to Wal-Mart," he said.
A downshift to cheaper, more discount-oriented retailing could indicate increased caution among U.S. consumers, who are a key driver in the global economy.
Penney is expected to report first-quarter earnings per share of $0.50 versus $1.04 a year earlier. Nordstrom, an upmarket retailer, is seen with a Q1 EPS of $0.49 versus $0.61.
Hewlett-Packard's Q2 EPS is seen rising to $0.82 from $0.71.
On the indicator front, the May Philadelphia Federal Reserve business index at 1400 GMT is expected to improve to minus 19.0 from minus 24.9 a month earlier.
"(It) has collapsed in recent months," Dixon said.
Companies in focus are likely to include Yahoo Inc <YHOO.O>, whose shares rose 2.2 percent to $27.75 after the bell on Wednesday after sources familiar with the matter said billionaire investor Carl Icahn is moving ahead with plans to run a dissident board slate at Yahoo. [ID:nN14295220]
General Electric Co <GE.N> may also be in the spotlight after the Wall Street Journal reported GE is looking to sell its appliance unit in an auction that could bring in $5 billion to $8 billion. [ID:nN14537122] (Reporting by Jeremy Gaunt; Editing by Quentin Bryar) ((jeremy.gaunt@reuters.com; +44 207 542 1028; Reuters Messaging: jeremy.gaunt.reuters.com@reuters.net))
Keywords: MARKETS STOCKS US EUROPE
US futures flat ahead of CPI, Freddie Mac, Macy's
Reuters: [2008-05-14 11:58:00]
By Jeremy Gaunt
LONDON, May 14 (Reuters) - U.S. stocks looked set to open steady on Wednesday with investors focusing on key inflation data and corporate earnings from the housing and retail sectors.
The Consumer Price Index (CPI) for April is due for release at 1230 GMT, before the U.S. market opening, and may offer some evidence of how much scope the Federal Reserve has to cut U.S. interest rates.
Earnings, meanwhile, were due from Freddie Mac <FRE.N>, the second largest U.S. home funding company, and department store chain Macy's <M.N>, both of which report before the Wall Street opening bell.
"I think it is going to be really down to the data today," said David Buik of Cantor Index. "I don't see it as being a huge day today."
Stock index futures for the Dow Jones industrial average <.DJI> <DJM8>, S&P 500 <.SPX> <SPM8> and Nasdaq 100 <.NDX> <NDM8> were trading between flat and down 0.1 percent.
The indicative Dow Jones index <.DJII> was down nearly 1 percent.
Economists in a Reuters survey expect a median 0.3 percent gain in the CPI and an annual rise of 2.4 percent in core CPI excluding food and energy items.
The figures, however, are being released following renewed concerns from U.S. Federal Reserve officials about growing U.S. inflationary pressure.
Cleveland Fed President Sandra Pianalto said on Tuesday that core inflation measures were rising faster than she liked and called inflation "a key risk". Dallas Fed President Richard Fisher said it was unclear whether a slowing U.S. economy would be enough to alleviate cost pressures. [ID:nN13441127]
Both comments suggested the Fed is unlikely to cut interest rates again next month.
On the earnings front, Freddie Mac should give some kind of steer on how it is weathering the housing storm. Analysis estimate a first-quarter loss per share of $1.57 compared with a gain of $1.16 a year earlier.
Macy's is seen making a quarterly loss of $0.02 a share versus a gain of $0.16 12-months ago.
Farm equipment maker Deere & Co. <DE.N> also report its Q2 earnings with analysis expecting a $1.74 EPS gain versus $1.36.
Clear Channel Communications <CCU.N> stock rose 4.8 percent in Frankfurt <CCU.F>. A dispute over financing of the buyout of Clear Channel ended overnight as the parties struck a new deal at $17.9 billion, or $36 per share. The stock closed at $34.30 on Tuesday.
In other news, U.S. pharmaceuticals group Pfizer <PFE.N> is exploring acquisition possibilities in the German biotech sector and has held talks with the management of Munich-based Medigene <MDGGn.DE>, two industry sources said. Pfizer and Medigene declined to comment.
Pfizer shares were up 0.8 percent from their last close in Frankfurt at 12.99 euros <PFE.F>.
A German newspaper quoted Nike <NKE.N> Brand President Charlie Denson as saying the world's largest maker of athletic footwear and apparel could buy a Chinese or Japanese rival to strengthen its presence in Asia.
(Editing by Quentin Bryar) ((Jeremy.gaunt@reuters.com; +44 207 542 1028; Reuters Messaging: jeremy.gaunt.reuters.com@reuters.net))
Keywords: MARKETS STOCKS US EUROPE
Wall Street seen lower with HP, Bernanke in focus
Reuters: [2008-05-13 11:26:00]
By Eva Kuehnen
FRANKFURT, May 13 (Reuters) - U.S. stock index futures eased on Tuesday, pointing to a weaker start on Wall Street with merger and acquisition activity in focus as Hewlett-Packard <HPQ.N> engages in talks to buy Electronic Data Systems <EDS.N>.
At 0851 GMT, index futures for the S&P 500 <SPc1> had fallen 0.2 percent, Dow Jones industrial average futures <DJc1> eased 0.1 percent and Nasdaq futures <NDc1> fell 0.2 percent.
The indicative Dow Jones index <.DJII> dropped 1.1 percent.
European shares were broadly unchanged while Asian markets gave a broadly firmer performance.
The technology sector is likely to take the limelight again after it lifted U.S. stocks on Monday, amid news that Hewlett-Packard was in talks to buy Electronic Data Services and on optimism over the U.S. economy.
"It is single stories that move markets at the moment," said Lutz Roehmeyer, fund manager at LBB Invest in Berlin.
"The whole issue of takeover speculation is pretty hot again," he said, adding that it was a good sign to see strategic buyers in the market.
Roehmeyer said refinancing problems of private equity firms and lower company valuations were the key drivers for this trend, "which indicates that we might see more strategic deals in future," he said.
HP is expected to pay about $12 billion to $13 billion for EDS in a deal which would vault HP to a close second to IBM in technology services. The acquisition would be HP's biggest since its $19 billion acquisition of Compaq in 2002.
U.S. EARNINGS SEASON PETERS OUT
The day's corporate earnings calendar looks fairly thin as the U.S. earnings season peters out. Updates include Applied Materials <AMAT.O>, Electronic Arts <ERTS.O>, Fossil <FOSL.O>, Toll Brothers <TOL.N>, Wal-Mart Stores <WMT.N> and Whole Foods Market <WFMI.O>.
On the macro economic front, investors await retail sales for April and import prices, both due at 1230 GMT, as well as business inventories and the Philadelphia Federal Reserve's quarterly survey, both due at 1400 GMT.
"The market will be looking for further guidance from Ben Bernanke today on bank liquidity when he addresses the Atlanta Federal Reserve," said David Buik of Cantor Index in a note.
U.S. Federal Reserve Chairman Ben Bernanke speaks via satellite on "Federal Reserve Liquidity Measures" to the Federal Reserve Bank of Atlanta at 1220 GMT.
The oil price fell towards $123 a barrel on profit-taking and after a fall in China's oil imports in April raised questions over demand in the world's second-largest oil consumer.
U.S. light crude for June delivery <CLc1> lost 82 cents to $123.41 a barrel by 0849 GMT.
On Monday, the Dow Jones industrial average <.DJI> rose 1.02 percent, the Standard & Poor's 500 Index <.SPX> gained 1.10 percent and the Nasdaq Composite Index <.IXIC> added 1.76 percent.
After the bell, shares of LDK Solar <LDK.N> fell in extended-hours trading after the Chinese solar wafer maker reported first-quarter earnings and a full-year profit outlook.
(Editing by Rory Channing) ((eva.kuehnen@reuters.com; +49 69 7565 1207; Reuters Messaging: eva.kuehnen.reuters.com@reuters.net))
Keywords: rcMARKETS STOCKS US EUROPE
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