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Futures Mixed Ahead Of Fed, ECB Meet This Week; Shaw Group (SHAW) Jumps

 July 30, 2012 09:10 AM
 

(By Balachander) U.S. stock index futures pointed to a mixed opening on the Wall Street, as investors remained cautious ahead of the Federal Reserve and the European Central Bank meeting this week amid growing hopes of further monetary measures to stimulate the global economy.

Mini Dow Industrial Average futures shed 41 points to 12,992. The Nasdaq Futures inched up 1.50 points to 2,643.50. Standard and Poor's 500 futures lost 5.20 points to 1,377.30.

On the domestic economic front, the Dallas Fed Manufacturing Business Index for July is due at 10.30 a.m. ET.

The U.S. Federal Reserve's Federal Open Market Committee (FOMC) and the ECB both meet this week amid stimulus hopes. A report from the U.S. Commerce Department last week confirmed the world's largest economy expanded at a slower pace and ECB President Mario Draghi said the bank could do whatever is needed to protect the beleaguered euro.

On Friday, U.S. stocks rallied amid growing hopes of monetary intervention by the Federal Reserve and the ECB to spur economic growth.

Hot Stocks Of The Day: T, CBI, SHAW, PGNX, SLXP

In corporate news, AT&T Inc. (NYSE:T) raised its stock buyback plan by 300 million shares, representing around 5 percent of the telecommunications services company's shares outstanding. Shares inched higher in premarket.

Chicago Bridge & Iron Co. (NYSE:CBI) retreated 8.48 percent in premarket after the engineering and construction company agreed to acquire Shaw Group Inc. (NYSE:SHAW) for $46.00 per share, or around $3 billion in cash and stock. The deal represents a 72 percent premium to SHAW's previous closing price. SHAw shares soared 66.09 percent in premarket.

Progenics Pharmaceuticals Inc. (NASDAQ:PGNX) and Salix Pharmaceuticals Ltd. (NASDAQ:SLXP) lost 47.22 percent and 10.21 percent, respectively after U.S. health regulators sought more clinical data following a review of constipation treatment Relistor. Progenics licensed rights for Relistor to Salix.

Roper Industries Inc. (NYSE:ROP) is acquiring Sunquest Information Systems Inc, a provider of laboratory information system software, for about $1.4 billion in cash. In addition, the company posted in-line earnings and it raised full-year forecast after quarterly orders grew 8 percent.

On the earnings front, Anadarko Petroleum (NYSE:APC), Eastman Chemicals (NYSE:EMN), Fiserv (NASDAQ:FISV), Forest Oil (NYSE:FST), PMC-Sierra (NASDAQ:PMCS) and Seagate Technology (NASDAQ:STX) are due to report their quarterly results after the markets close.

Global Markets:

European markets traded higher, with Germany's DAX advancing 0.61 percent to trade at 6,730.10. France's CAC40 traded 0.35 percent higher at 3,291.63. U.K.'s FTSE 100 rose 0.53 percent to trade at 5,657.04.
          
Among Asian markets, China's Shanghai Stock Exchange Composite Index fell 0.89 percent to finish at 2,109.91. Japan's Nikkei 225 gained 0.80 percent to end at 8,635.44. Hong Kong's Hang Seng Index rallied 1.61 percent to end at 19,585.40. India's BSE Sensex finished at 17,143.68, up 1.81 percent.

Market Scan:

Ahead of the opening bell, crude oil futures declined 0.60 percent to $89.590 per barrel. Gold futures shed 0.23 percent to $1,619.0 per ounce.
                                      
In the currency market, the euro traded 0.65 percent lower against the U.S. dollar at 1.2243 and the British pound dropped 0.39 percent against the greenback to 1.5686. The dollar dipped 0.28 percent against the Japanese yen to 78.2400.


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