U.S. stock futures are pointing higher today as takeover
activity heats up and after equities pulled back from a four-week
The S&P 500, Dow Jones Industrial Average and Nasdaq Composite
are indicated to open higher by 0.5 percent to 0.7 percent after
closing little changed yesterday. The S&P 500 and Dow rebounded
after touching their lowest levels since July 21 and July 22.
The big merger buzz this morning centers on fertilizer maker
Potash, which rejected an unsolicited takeover bid from BHP
Billiton for $130 a share. POT is skyrocketing nearly 30 percent to
near $145 in pre-market trading.
There were also advances in deals that had been previously
discussed: The Financial Times reported that Spanish bank Santander
has renewed talks with U.S. regional lender M&T Bancorp. The
Wall Street Journal reported that packaging company Pactiv is on
the verge of announcing that it will be acquired by Australia's
Rank Group. The news seems to have offset potentially negative
headlines from Germany, where the ZEW economic index unexpectedly
plummeted from its breakneck pace in July.
In U.S. markets, Wal-Mart and Home Depot reported weak revenue but
raised their earnings forecasts on strong cost controls. WMT also
benefited from strong overseas growth.
Later in the morning, investors will also be waiting for U.S.
economic data, with Housing Starts and the Producer Price Index due
at 8:30 a.m. ET and Industrial Production at 9:15 a.m. ET.
(Chart courtesy of tradeMONSTER)
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