(By Salman - iStockAnalyst Writer)
US stock futures edged lower on Monday as investors remained worried about weak corporate profits.
At 8:26 am ET, Standard & Poor's 500 Index futures expiring in March dropped 2.80 points to 882.70. Dow Jones Industrial Average futures decreased 8 points to 8511. Nasdaq Composite Index futures fell 0.50 points to 1221.
Shares of Alcoa (NYSE: AA) lost over 4% in Frankfurt trade after Deutsche Bank cut its rating on Alcoa to sell from hold and lowered price estimate on its stock by 20% to $8. The largest US aluminum producer is set to announce its fourth-quarter results after the market close. Alcoa announced last week that it will cut 13,500 jobs and reduce production by 18% due to continued slump in demand and prices of metal.
According to reports, Citigroup (NYSE: C) is contemplating merging its Smith Barney unit with the Morgan Stanley's (NYSE: MS) brokerage unit. In yet another development, former Treasury Secretary Robert Rubin resigned from his position as senior counselor from Citi on Friday.
Drug maker Pfizer, Inc. (NYSE: PFE) was upgraded by Goldman Sachs to neutral from sell.
Early on Monday, Abbott Laboratories (NYSE: ABT) announced that it would acquire Advanced Medical Optics (NYSE: EYE) for $22 a share, or about $2.8 billion in cash.
According to reports, Obama's economic team is working on an overhaul of the rescue package. The team is expected to broaden financial bailout package to include municipalities, small businesses and homeowners.
Satyam (NYSE: SAY) jumped over 50% in India after the government appointed a new board to decide on its future.
European markets retreated in afternoon trade. At 13:02 pm London time, the U.K. FTSE fell 14.91 points or 0.50% to 4,426.18. The German DAX and French CAC decreased 0.31% and 0.52% respectively.
Asian stocks finished in red. Hong Kong's Hang Seng Index dropped 406.44 points or 2.83% to 13,971.
NYMEX Crude Oil for February delivery dropped as much as $2.40, or 5.9%, to $38.43 a barrel
Disclosure: Author does not own any of the stocks discussed here.
