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U.S. Futures Rise On China Stimulus Hopes; Hot Stocks Of The Day: VRTX, LCRY, TDY, TRMK, BTFG

 May 29, 2012 09:19 AM
 

(By Balaseshan) US stock-index futures pointed to a higher open on the Wall Street, on hopes that China might announce stimulus plan and Greece might avoid exiting from the euro zone.

Mini Dow industrial average futures added 80.00 points to 12,509.00. The Nasdaq Futures gained 18.00 points to 2,542.00. Standard and Poor's 500 futures edged 7.70 points higher  to 1,322.70.

On the US economic front, the S&P/Case-Shiller home price index, which tracks monthly values of residential real estates in 20 metropolitan regions, is scheduled to be released at 9 am. In addition, the Conference Board is scheduled to release its consumer confidence report for May at 10 am.

There has been speculation that China, whose biggest export market is crisis-hit Europe, may soon launch a stimulus program to boost economic growth. China's biggest banks appeared to have accelerated lending toward the end of this month as Beijing starts to fast-track its approval of infrastructure investments in an effort to stem sagging growth, the official Shanghai Securities News reported Tuesday citing unidentified sources.

On the European news front, an exit poll results showed that Greece's pro-bailout parties gaining ground eased concerns about the possibility of the country's exit from the euro zone.

On Friday, U.S. stocks ended on a lower note ahead of the long holiday weekend amid concerns about debt-plagued Greece and Spain's struggle with its finances.

Hot Stocks Of The Day: VRTX, LCRY, TDY, TRMK, BTFG

In corporate news, Vertex Pharmaceuticals Inc. (NASDAQ:VRTX) plunged 20.66 percent in premarket after the drug maker corrected cystic fibrosis data.

LeCROY Corp. (NASDAQ:LCRY) jumped 55.03 percent in premarket after Teledyne Technologies Inc. (NYSE:TDY) agreed to buy the oscilloscopes maker for around $291 million, or $14.30 per share, in cash. The deal represents a premium of 56.5 percent to LCRY's previous closing price.

Trustmark Corp. (NASDAQ:TRMK) is acquiring BancTrust Financial Group Inc. (NASDAQ:BTFG) for around $55.4 million, or $3.08 a share, to expand its presence in Alabama markets. Holders of BancTrust stock will receive 0.125 shares of Trustmark stock for each share of BancTrust stock in a tax-free exchange. The deal represents a 62 percent premium to BTFG's closing price of $1.90 on Friday.

Global Markets:

The European markets traded on a mixed note on Greece's exit poll results, with Germany's DAX gaining 0.58 percent to trade at 6,360.14. France's CAC40 added 0.53 percent to 3,059.10. Britain's FTSE 100 edged 0.01 percent lower to 5,355.54.

Asian markets closed higher on China stimulus hopes. The Shanghai Composite Index jumped 1.20 percent to end at 2,389.64. Hong Kong's Hang Seng rallied 1.35 percent to close at 19,055.46. Japan's Nikkei 225 gained 0.74 percent to close at 8,657.08. India's BSE Sensex finished at 16,438.58, up 0.13 percent.

Market Scan:

Ahead of the opening bell, crude oil futures gained 0.11 percent to $90.96 per barrel. Gold futures added 0.74 percent to $1,568.80 per ounce.

In the currency market, the euro edged 0.08 percent lower against the U.S. dollar to 1.2532, and the British pound shed 0.13 percent against the greenback to 1.5662. The dollar rose 0.10 percent against the Japanese yen to 79.5500.


Rich
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