Futures Reflect Investor Reluctance Despite Upbeat Earnings and Pharma M&A


Despite positive earnings from Netflix ( NFLX ) and Comcast ( CMCSA ), strength in Europe and several multi-billion dollar deals in the pharmaceutical sector, stock futures are flat into the open as investors remain reluctant to pour back into the equity markets ahead of the deluge of earnings this week.

In corporate news, Valeant ( VRX ) and Allergan ( AGN ) will merge in a cash and stock deal, GlaxoSmithKline ( GSK ) and Novartis (NVS) are in talks to merge some of their business segments, and there is lingering speculation of a merger between AstraZeneca (AZN) and Pfizer (PFE).

On the earnings front, Netflix beat on earnings but was in-line on revenue, Comcast and Harley Davidson (HOG) beat on both earnings and revenue, but McDonald's (MCD) was a miss.

In economic data, FHFA home prices were up 0.6% in February, beating expectations for a 0.3% gain.

-Dow Jones Industrial up 0.05%

-S&P 500 futures up 0.05%

-Nasdaq 100 futures up 0.20%


Nikkei down 0.85%

Hang Seng down 0.13%

Shanghai Composite up 0.34%

FTSE-100 up 1.04%

DAX-30 up 1.52%


(+/-) Large cap tech: mixed

(+) Chip stocks: higher

(+/-) Software stocks: mixed

(+/-) Hardware stocks: mixed

(+) Internet stocks: higher

(+) Drug stocks: higher

(+) Financial stocks: higher

(-) Retail stocks: lower

(+/-) Industrial stocks: higher

(+/-) Airlines: mixed

(+) Autos higher


(+) AGN (+17.73%) Valeant ( VRX ) proposed a merger for $48.30 in cash and 0.83 shares of Valeant for each share of Allergan

(+) HOG (+6.75%) Reported better than expected Q1 earnings

(+) NFLX (+8.11%) Beat on earnings but in-line for revenue


(-) BEBE (-16.15%) Reports a greater-than-expected loss, lower revenue

(-) PHG (-7.05%) Missed revenue estimates

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: NFLX , CMCSA , VRX , AGN , GSK

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