(By Salman - iStockAnalyst Writer)US stock futures pointed to a weaker start on Monday as three major US banks announced that they will issue nearly $7 billion in new stock in order to repay TARP fund.
At 8:31 am ET, Standard & Poor's 500 Index futures declined 13.60 points to 911.10. Dow Jones Industrial Average futures tumbled 79 points to 8437. Nasdaq Composite Index futures shed 17 points to 1372.50.
Meanwhile, Capital One Financial Corp. and BB&T Corp. announced large common stock offerings, proceedings of which will be used, subject to approval, to help repay preferred stock investments the government made as part of the bank bailout plan. The three banks that were among the 19 largest US banks to undergo government "stress tests", were among the nine found not to need more capital. U.S. Bancorp (NYSE:
USB) said it plans to raise $2.5 billion, Capital One Financial Corp (NYSE:
COF) announced that it intends to raise $1.75 billion while BB&T Corp (NYSE:
BBT) hopes to raise $1.5 billion.
European banking giant HSBC Holdings (NYSE:
HSC) on Monday said that said first-quarter profits were "well ahead" of last year, thanks to record results in its investment bank, but would have been down without accounting gains on its debt. Excluding a $6.6 billion fair value gain on its own debt, first quarter profit was below a year ago, though still "significantly higher" than in the fourth quarter. About two-thirds of the debt gain reversed in April, the bank said.
Early on Monday, Dish Network Corp. (NASDAQ:
DISH), the second-largest US satellite TV provider, reported that its first-quarter profit jumped 21% to $312.7 million, or 70 cents per share, for the period ended March 31, up from $258.6 million, or 57 cents per share, a year earlier. Revenue increased 2.1% to $2.91 billion from $2.84 billion.
Conseco Inc. (NYSE:
CNO) said that it swung to a first quarter profit of $24.5 million, or 13 cents a share, from a loss of $7.2 million, or 4 cents a share a year ago. Revenue rose to $1.07 billion.
European drugmaker AstraZeneca Plc's (NYSE:
AZN) said that top line results from a phase III trial showed that Brilinta, its investigational oral antiplatelet treatment for acute coronary syndromes, or ACS, has achieved a statistically significant primary efficacy endpoint versus clopidogrel, in preventing cardiovascular events in patients suffering from ACS.
Earlier, US stock indices finished with weekly gains after stress test results and stronger than expected data fueled hopes of economic recovery.
European stocks retreated in afternoon trade. At 13:18 pm London time, the UK FTSE rose 39 points or 0.90% to 4,437. The German DAX and French CAC decreased 0.64% and 1.89% respectively.
Asian stocks finished up. The Nikkei 225 climbed 19.15 points or 0.20% to 9,451.98. The Hang Seng index of Hong Kong plunged 301.92 points or 1.74% to 17,087.95.
NYMEX Crude oil for June delivery declined as much as $1.59 or 2.7% to $57.04 a barrel.
Disclosure: Author does not own any of the stocks discussed here.
