U.S. stock futures point to a lower start to close the week as some
investors opt to cash in a bit of this week's rally. The Nasdaq and
S&P 500 have gained over four straight sessions and the Dow Jones
Industrial Average has advanced in three of four days. More deal news
was providing some bullish support to stock trading Friday.
Stocks gained in part on Thursday as the ECB and Bank of England
left interest rates at accommodative levels, not following the move of
Australia, which raised rates. But U.S. Federal Reserve Chairman Ben
Bernanke said late Thursday the Fed will reverse course and tighten
policy when the economic outlook improves sufficiently.
Still, Bernanke's remarks are likely behind Friday's trading
caution. Bullish stock investors want to make sure the credit climate
will continue to foster what's likely to be a slow economic recovery.
Friday's schedule includes three speeches by other Federal Reserve members.
Meanwhile, falling oil imports and a weaker dollar contributed to a
shrinking U.S. trade deficit in August, data this morning show. The
import/export gap fell to $30.7 billion.
Also released Friday, the International Energy Agency has once
again raised its forecasts for global oil demand for both this year and
2010, citing the more optimistic economic estimates by the
International Monetary Fund as well as strong preliminary data from the
Americas and Asia, MarketWatch and other news outlets report this
morning.
The agency raised its expectations by 200,000 barrels a day to an
average of 84.6 million barrels per day for 2009, and by 350,000
barrels per day to 86.1 million barrels per day for 2010.
Still, global oil demand in 2009 will still be 1.9% below last
year's level, the Paris-based IEA said in its monthly report issued
Friday.
In electronic futures trading this morning, October crude is down
$0.43 at $71.26 a barrel. Gold eased $4.90 at $1,051.40 an ounce, still
knocking around in record territory. The battered dollar has moved
higher against chief rivals Friday.
In deal news:
I-Flow (
IFLO) will be bought by Kimberly-Clark (
KMB) for about $324
million in cash, or $12.65 per share. The total transaction value,
which is net of acquired cash and cash equivalents, is about $276
million. The transaction is expected to be modestly dilutive to
Kimberly-Clark's 2009 and 2010 earnings per share and accretive
beginning in 2011.
Monterey Gourmet Foods (
PSTA) entered into a definitive merger
agreement with Pulmuone U.S.A. to be acquired through a cash tender
offer, followed by a merger with and into a subsidiary of Pulmuone, for
a price of $2.70 per share in cash.
U.S. PRE-MARKET INDICATORS
-Dow Industrial futures down 28 points.
-S&P 500 futures down 4 points.
-Nasdaq 100 futures down 8 points.
-Nasdaq-100 Pre-Market Indicator down 1.31 at 1716.48.
GLOBAL SENTIMENT
Nikkei up 1.9%
Hang Seng up 0.03%
FTSE-100 down 0.3%
PRE-MARKET SECTOR WATCH
(-) Large cap tech: mostly lower
(+,-) Chip stocks: mixed
(+,-) Drug stocks: mixed
(-) Software stocks: lower
(-) Internet stocks: lower
(-) Financial stocks: lower
(-) Auto stocks: lower
(+,-) Airline stocks: mixed
(+,-) Retail stocks: mixed
UPSIDE MOVERS
(+) IFLO (+7.1%) sold to Kimberly-Clark for $12.65 a share.
(+) AVNR (+12.2%) reports Phase 3 results for Zenvia; one dose meets primary endpoint.
(+) SVNT (+5.5%) gains after announcing share pricing.
(+) DB (+0.1%) upgraded.
(+) THLD (+14%) continues evening gain that followed
(+) PSTA (flat) inks merger deal.
DOWNSIDE MOVERS
(-) SPPI (-17.7%) gets FDA response letter for FUSILEV.
(-) ACOR (-9.8%) says documents on Fampridine from FDA panel out.
(-) LXRX (-6.8%) pricing shares.
