Investing.com – U.S. stock futures pointed to a higher open on Monday, as increased merger-and-acquisition activity lifted sentiment following Friday’s sharp decline.
Dow Jones Industrial Average futures pointed to rise of 0.35%, the S&P 500 futures climbed 0.4%, while Nasdaq 100 futures indicated a gain of 0.3%.
On Friday, the Dow fell 1.4% to close at its lowest level since March 18. It dropped 1.6% for the week. The S&P 500 lost 1.4% Friday and 2.2% last week. Both indexes have seen six straight weeks of losses.
With no economic data due Monday, markets focused on a flurry of deal news. Shares in footwear retailer Timberland soared 42.5% in pre-market trade after it agreed to be acquired by VF Corporation for approximately USD2 billion.
As part of the acquisition, Timberland will become part of VF's Outdoor & Action Sports division. Shares in VC surged 7.8% on the news.
Fast-food chain Wendy’s Arby’s Group saw shares jump 7.5% after it announced that it would sell Arby’s Restaurant Group to private-equity firm Roark Capital for USD430 million. Wendy’s will retain an 18.5% ownership interest in the Arby’s business.
Shares in New York-based reinsurer Transatlantic Holdings rallied 17.9% after it agreed to merge with Swiss insurance giant Allied World Assurance in a deal valued at nearly USD3.2 billion to create TransAllied Group Holdings.
Shares in Gerber Scientific soared 33.8% after the company said it agreed to be bought by Vector Knife Holdings for approximately USD282 million.
Elsewhere, Israeli computer-services provider Ness Technologies surged 13.6% after it agreed to be acquired by a Citigroup private-equity fund for USD307 million.
On the downside, Gilead Sciences saw shares tumble 3.1% after the bio-pharmaceutical firm disclosed that it was subpoenaed by the U.S. Justice Department over the manufacturing and distribution practices of several of the company’s drugs.
Other stocks in focus included pharmaceutical companies GlaxoSmithKline and Valeant Pharmaceuticals. The U.S. Food and Drug Administration approved an epilepsy drug developed by the two companies. The treatment is expected to be available in U.S. pharmacies by the end of the year.
Across the Atlantic, European stock markets edged higher, but gains were limited amid ongoing uncertainty over a resolution to Greece’s sovereign debt crisis. The EURO STOXX 50 added 0.1%, France’s CAC 40 rose 0.15%, Germany's DAX eased up 0.08%, while Britain's FTSE 100 edged 0.25% higher.
During the Asian trading session, Japan’s Nikkei 225 Index slumped 0.7%, as shares in Toyota led losses after forecasting a decline in profit.
Later in the day, Richmond Federal Reserve President Jeffrey Lacker and Dallas Fed President Richard Fisher were scheduled to speak. Their comments would be closely watched for clues amid uncertainty over future U.S. monetary policy ahead of the end of the Fed’s quantitative easing program at the end of the month.
Dow Jones Industrial Average futures pointed to rise of 0.35%, the S&P 500 futures climbed 0.4%, while Nasdaq 100 futures indicated a gain of 0.3%.
On Friday, the Dow fell 1.4% to close at its lowest level since March 18. It dropped 1.6% for the week. The S&P 500 lost 1.4% Friday and 2.2% last week. Both indexes have seen six straight weeks of losses.
With no economic data due Monday, markets focused on a flurry of deal news. Shares in footwear retailer Timberland soared 42.5% in pre-market trade after it agreed to be acquired by VF Corporation for approximately USD2 billion.
As part of the acquisition, Timberland will become part of VF's Outdoor & Action Sports division. Shares in VC surged 7.8% on the news.
Fast-food chain Wendy’s Arby’s Group saw shares jump 7.5% after it announced that it would sell Arby’s Restaurant Group to private-equity firm Roark Capital for USD430 million. Wendy’s will retain an 18.5% ownership interest in the Arby’s business.
Shares in New York-based reinsurer Transatlantic Holdings rallied 17.9% after it agreed to merge with Swiss insurance giant Allied World Assurance in a deal valued at nearly USD3.2 billion to create TransAllied Group Holdings.
Shares in Gerber Scientific soared 33.8% after the company said it agreed to be bought by Vector Knife Holdings for approximately USD282 million.
Elsewhere, Israeli computer-services provider Ness Technologies surged 13.6% after it agreed to be acquired by a Citigroup private-equity fund for USD307 million.
On the downside, Gilead Sciences saw shares tumble 3.1% after the bio-pharmaceutical firm disclosed that it was subpoenaed by the U.S. Justice Department over the manufacturing and distribution practices of several of the company’s drugs.
Other stocks in focus included pharmaceutical companies GlaxoSmithKline and Valeant Pharmaceuticals. The U.S. Food and Drug Administration approved an epilepsy drug developed by the two companies. The treatment is expected to be available in U.S. pharmacies by the end of the year.
Across the Atlantic, European stock markets edged higher, but gains were limited amid ongoing uncertainty over a resolution to Greece’s sovereign debt crisis. The EURO STOXX 50 added 0.1%, France’s CAC 40 rose 0.15%, Germany's DAX eased up 0.08%, while Britain's FTSE 100 edged 0.25% higher.
During the Asian trading session, Japan’s Nikkei 225 Index slumped 0.7%, as shares in Toyota led losses after forecasting a decline in profit.
Later in the day, Richmond Federal Reserve President Jeffrey Lacker and Dallas Fed President Richard Fisher were scheduled to speak. Their comments would be closely watched for clues amid uncertainty over future U.S. monetary policy ahead of the end of the Fed’s quantitative easing program at the end of the month.