Futures for the Dow Jones Industrial Average were up 23 points to 12068, while the S&P 500 index rose 4.20 points to 1311.40. Futures for the Nasdaq Composite rose 2.75 points to 2340.25. Markets closed higher on Friday, and for the week, with the Dow Industrials up 29.89 points, or 0.3%, to 12092.15. The Dow Industrials and S&P 500 index last week pushed above the key 12000 and 1300 levels, respectively, for the first time since 2008.
The Dow rose 2.3% for the week and the S&P 500 rose 2.7%, both the best weekly performances since Dec. 3. The Nasdaq 100 index rose 3.1% on the week. Atif Latif, a director of trading at Guardian Stockbrokers, said there is still plenty of enthusiasm for U.S. stocks following last Friday's nonfarm payroll numbers, which showed only 36,000 additions to payroll, but a surprise drop in the unemployment rate to 9% for January.
The key levels reached last week for markets are also inspiring investors, Latif added, in emailed comments.
Geopolitical events are also helping. "We are seeing strength in the market due to chatter about Egypt calming down," he added. In Cairo, some businesses were trying to return to normal, but many protesters remained on Tahrir Square on Monday, according to media reports.
The data calendar for Monday is thin with consumer-credit data for December due at 3 p.m., EST.
Shares of biomedical testing group Beckman Coulter Inc. (BEC) jumped 10% in premarket trade after diversified manufacturing and technology company Danaher Corp. (DHR) said it would pay $83.50 a share for Beckman, or $6.8 billion in cash, including debt. That represents a 45% premium to Beckman's closing price on Dec. 9 before rumors of the deal were in the market.
Shares of Chesapeake Energy Corp. (CHK) rose 2% in premarket trade after the firm said it would sell its Fayetteville shale assets and equity stakes in Frac Tech Holdings LLC and Chaparral Energy for around $5 billion.
Meanwhile, Berkshire Hathaway Inc. (BRKA, BRKB) said it plans to buy the rest of the remaining 19.9% of Wesco Financial Corp. (WSC) shares it doesn't already own.
On the earnings side, shares of Hasbro Inc. (HAS) could be active after the group said it earned 99 cents a share in the fourth quarter, compared to $1.09 a share in the same period a year ago. Revenue fell to $1.28 billion from $1.38 billion.
Loews Corp. (L) said it earned $1.12 a share versus 94 cents a share, in the fourth quarter, on a year-ago basis.
AOL Inc. (AOL) said it signed a definitive deal to buy news website The Huffington Post for $315 million. The deal has already been approved by the boards of the two companies.
In Europe, stock markets posted gains. Shares of Nokia Corp. (NOK, NOK1V.HE) rose on reports of a planned management shake-up.
In Asia, a weak yen boosted stocks in Tokyo, while Hong Kong shares fell, led by energy stocks. |
Crude oil for March delivery rose 37 cents to $89.40 a barrel, while gold futures for April delivery fell $2.50 to $1,351.50 an ounce.
The dollar was little changed against most other major currencies.
-By Barbara Kollmeyer; 34 91 395 8131; AskNewswires@dowjones.com
Among the companies whose shares are expected to actively trade in Monday's session are Beckman Coulter Inc. (BEC), Pride International Inc. (PDE) and Chesapeake Energy Corp. (CHK).
Danaher Corp. (DHR) agreed to acquire lab-equipment maker Beckman Coulter for $5.87 billion as the diversified tool manufacturer looks to gain a stronger foothold in the growing diagnostics industry. Under the terms of the deal, Danaher will pay $83.50 for each Beckman share, which the companies said represents a premium of about 45% over where the stock was trading Dec. 9, before takeover rumors surfaced. Beckman shares surged 10% to $82.70 in premarket trading Monday.
U.K.-based Ensco PLC (ESV) said it would buy Pride International in a cash and stock deal worth $41.60 a share. The deal values Pride International at a premium of 21% over its closing price of $34.39 on Friday. Shares of Pride International jumped 16% to $40 in pre-market trading. Ensco said the deal will make it the second-largest offshore driller in the world.
Chesapeake Energy said it will sell its stake in a major natural gas play and two energy companies, moves it estimates could generate $5 billion before taxes to help pay down debt. Chesapeake shares gained 4.3% to $31.35 premarket.
Emergent Group Inc. (LZR) agreed to be acquired by Universal Hospital Services Inc. (UHS) in a deal valued at about $59.2 million that will help the hospital company expand its surgical equipment offerings. Emergent's shares soared 38% to $8.39 in recent premarket trading as Universal Hospital Services is offering $8.46 per share, a 40% premium to Emergent's Friday close.
Weyerhaeuser Co. (WY) slumped 4.5% premarket to $23.20 after a couple of bearish calls. UBS cut its stock-investment rating on the forest-products company to sell from neutral. While it notes "the long-term value in WY in an eventual housing recovery," benefits are already being priced in and "we see too much near-term risk of disappointment." Meanwhile, Credit Suisse cut its rating to underperform from neutral, citing "just a 2.5% dividend yield plus what we see as a premium valuation on a asset basis."
AOL Inc. (AOL) disclosed early Monday morning plans to acquire online news website Huffington Post for $315 million, as part of the Internet company's attempt to turn its business around with a strategy of becoming a top producer of news, entertainment and other digital content. AOL's shares rose 2.1% to $22.40 in pre-market trading.
Humana Inc.'s (HUM) fourth-quarter earnings fell 57% amid increased expenses, including acquisition-related costs, as the managed-care company also saw medical claims costs rise. For the year, the company raised its prior per-share earnings estimate by 25 cents to $5.70 to $5.90. It also forecast revenue above analysts' estimate. But for the current quarter, Humana expects earnings of $1.15 to $1.20 a share, while analysts projected $1.27. Humana's shares fell 3% to $58.75 premarket.
Sysco Corp.'s (SYY) fiscal second-quarter earnings fell 3.8% as the U.S. food-service distributor saw higher food, fuel and overhead costs. The results fell short of analysts' expectations, sending shares down 3.7% at $28.75 in recent premarket trading.
Lorillard Inc.'s (LO) fourth-quarter profit rose a better-than-expected 7% as the cigarette-maker claimed more market share for its Newport menthol brand. Shares gained 2.4% to $76.80 in premarket trading.
Toy maker Hasbro Inc.'s (HAS) fourth-quarter profit fell 15% as declining sales in the entertainment and licensing segment more than offset rising sales in the girls and international categories. Shares fell 4.1% to $43 in light premarket trading.
Watch List:
American Apparel Inc. (APP) said it appointed former Old Navy Chief Financial Officer John J. Luttrell to serve as the apparel maker and retailer's CFO, as the company makes good on its plan to bring in more executives.
A.O. Smith Corp. (AOS) and Regal Beloit Corp. (RBC) said they have each received a request for additional information and documentary material from the U.S. Department of Justice regarding the sale of A.O. Smith Electrical Products to Regal Beloit.
Boardwalk Pipeline Partners LP's (BWP) fourth-quarter earnings rose a better-than-expected 24% after higher gas transportation revenue offset a decline in revenue from gas storage.
Borders Group Inc. (BGP) said Friday the New York Stock Exchange warned that the price of its stock needs to rise above $1 a share in the next six months to continue its listing.
Cognizant Technology Solutions Corp.'s (CTSH) fourth-quarter earnings rose 43% as the information-technology consultant and outsourcer benefited from improved demand and disclosed plans to further expand. The results topped the company's upbeat guidance.
Loews Corp.'s (L) fourth-quarter profit rose 16% as its CNA Financial Corp. (CNA) insurance unit saw earning surge 23% and reinstated its quarterly dividend.
Renasant Corp. (RNST), the holding company for Renasant Bank and Renasant Insurance, said it acquired American Trust Bank of Roswell, Georgia in a Federal Deposit Insurance Corporation-assisted transaction. Renasant's shares rose 0.4% to $15.89 in recent after-hours trading after it said it sees the deal adding to its earnings-per-share as well as to its tangible book value.
TransDigm Group Inc.'s (TDG) swung to a loss in its fiscal first quarter after a series of acquisitions but reported better-than-expected earnings on an adjusted basis on an improving commercial aerospace market. The maker of ignition systems, cockpit-security devices and other aircraft components also raised its outlook for the year after accounting for one of the acquisitions.
Oil-and-gas explorer Venoco Inc. (VQ) unveiled plans to sell at least 4 million shares of stock and $500 million in 8-year notes in a private offering to repay debt and for other purposes.
Berkshire Hathaway Inc. (BRKA, BRKB) agreed to acquire the 19.9% stake in Wesco Financial Corp. (WSC) it doesn't already own in a deal valued at about $547.6 million. For the latest updates PRESS CTR + D or visit Stock Market news Today
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