(By Salman - iStockAnalyst Writer)
US stock futures were mixed on Wednesday after Alcoa reported worse than expected first quarter results. However, Pulte’s announcement of acquisition of rival Centex boosted investor sentiment.
At 8:21 am ET, Standard & Poor's 500 Index futures rose 1 point to 815. Dow Jones Industrial Average futures fell 3 points to 7759. Nasdaq Composite Index futures increased 5 points to 1285.75.
Pulte Homes Inc. (NYSE: PHA), one of the largest US homebuilder, agreed to acquire rival Centex Corp. (NYSE: CTX) in a stock-for-stock deal valued at $1.3 billion. The merger of the two companies would create the largest US homebuilder. Shares of Centex soared over 15% in pre market action.
According to The Wall Street Journal, Brian Moynihan, who was put in charge of running Merrill after Thain was sacked, has emerged as a potential replacement of Bank of America (NYSE: BAC) Chief Executive Ken Lewis.
Shares of life insurers rallied in pre market trading on reports that U.S. Treasury Department may extend the Troubled Asset Relief Program to certain life insurers.
Meanwhile, the Securities and Exchange Commission is mulling to unveil several short selling restriction proposals on Wednesday.
Early on Wednesday, Family Dollar Stores Inc. (NYSE: FDO) reported that fiscal second quarter net income jumped to $84 million, or 60 cents a share, compared to $63 million, or 45 cents a share, in the year ago period. Revenue climbed 8.7% to $2.0 billion.
Constellation Brands (NYSE: STZ) said that its fiscal fourth quarter loss narrowed to $407 million, or $1.88 a share from $835 million, or $3.55 a share, in the comparable quarter last year. Revenue declined to $965 million form $1.14 billion.
After the closing bell on Tuesday, the largest US aluminum maker Alco (NYSE: AA) announced that it swung to a first-quarter loss of $497 million, or 61 cents a share, compared to a profit of $303 million, or 37 cents a share, in the prior year period. Quarterly revenue fell to $4.1 billion from $5.7 billion.
On the front of economic data, wholesale inventories data for the month of February is scheduled for release at 10:00 am ET.
European stocks were lower in afternoon trade. At 13:06 pm London time, the U.K. FTSE fell 23.23 points or 0.59% to 3,907.29. The German DAX and French CAC dropped 0.59% and 0.08% respectively.
Asian stocks finished down. The Nikkei 225 slumped 237.84 points or 2.69% to 8,595.01. The Hang Seng index of Hong Kong retreated 454.11 points or 3.04% to 14,474.86.
NYMEX crude oil for May delivery declined as much as $1.78 or 3.6% to $47.37 a barrel.
Disclosure: Author does not own any of the stocks discussed here.
