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U.S. Futures Fall On Greece Political Uncertainty; Hot Stocks: JPM, AVP, YHOO, CXO, CHK, ACOM

 May 14, 2012 09:08 AM
 

(By Balaseshan) U.S. stock-index futures pointed to a lower open on the Wall Street amid continuing political uncertainty in Greece.

Mini Dow industrial average futures fell 91.00 points to 12,697.00. The Nasdaq Futures lost 19.50 points to 2,591.25. Standard and Poor's 500 futures fell 11.70 points to 1,338.30.

There is no first tier domestic economic data scheduled for Monday. In Greece, talks to form a coalition government failed, meaning the country may have to face new elections. Greece's possible exit from the euro area has moved to the center of Europe's debt-crisis debate. The political turmoil has taken a toll on markets.

On Friday, U.S. stocks closed on a slightly lower note as investors weighed an upbeat data on U.S. consumer sentiment against disclosure by JP Morgan Chase of $2 billion trading losses on a failed hedging strategy.

Hot Stocks Of The Day: JPM, AVP, YHOO, CXO, CHK, ACOM

JPMorgan Chase & Co. (NYSE:JPM) dipped 1 percent in premarket. According to Reuters, three top executives involved with a failed hedging strategy that cost JPMorgan at least $2 billion and tarnished its reputation are expected to leave the bank this week. The company said Friday that it suffered a hefty $2 billion trading loss in its synthetic credit portfolio.

Avon Products Inc. (NYSE:AVP) gained 5.50 percent in premarket after the company's board said it would consider Coty's revised $10.7 billion takeover offer and it expected to respond within a week.

Yahoo! Inc. (NASDAQ:YHOO) increased 2.04 percent in premarket after the company's board has named Ross Levinsohn as interim CEO, effective immediately, replacing former CEO Scott Thompson, who resigned over the resume padding scandal. Yahoo! also replaced Roy Bostock with Fred Amoroso as Chairman. The company also said it has agreed with Third Point to settle its pending proxy contest.

Concho Resources Inc. (NYSE:CXO) rose 0.93 percent in premarket after the company agreed to buy all the oil and natural gas assets of Three Rivers Operating Co. for $1.0 billion in cash. The acquisition is expected to close in July 2012. The company said it plans to divest $200 million to $400 million of certain non-core assets from the acquisition and its existing assets over the next nine months.

Chesapeake Energy Corp. (NYSE:CHK) gained 6.01 percent in premarket after the company secured $3.0 billion unsecured loan from Goldman Sachs Bank USA and affiliates of Jefferies Group Inc. to enhance its financial flexibility.

Ancestry.com Inc. (NASDAQ:ACOM) fell 15.14 percent in premarket after the company's television series show Who Do You Think You Are? was not renewed by NBC.

Global Markets:

The European markets traded lower hurt by Greek uncertainty, with Germany's DAX falling 2.17 percent to trade at 6,437.01. France's CAC40 slumped 2.52 percent to 3,050.93. Britain's FTSE 100 tumbled 2.23 percent to 5,451.05.

Asian markets ended mixed on political uncertainty in Europe. The Shanghai Composite Index dipped 0.60 percent to end at $2,380.73. Hong Kong's Hang Seng fell 1.15 percent to close at 19,735.04. Japan's Nikkei 225 edged 0.23 percent higher to close at 8,973.84. India's BSE Sensex finished at 16,215.84, down 0.47 percent.

Market Scan:

Ahead of the opening bell, crude oil lost 2.09 percent to $94.12 per barrel. Gold fell 1.60 percent to $1,558.70 per ounce.
          
In the currency market, the euro shed 0.60 percent against the U.S. dollar at 1.2839 and the British pound edged 0.02 percent higher against the greenback to 1.6075. The dollar dipped 0.16 percent against the Japanese yen to 79.8100.


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