Stock Futures Gain on Prospects for Improving Consumer Confidence
NEW YORK (TheStreet) -- Stock futures were pointing to a rebound Tuesday after the S&P 500 posted its first weekly decline in five weeks ahead of what's expected to be improved consumer confidence and home price reports and amid a pair of acquisitions.
Futures for the S&P 500 were gaining 13 points, or 15.09 points above fair value, to 1,663.5 after a long weekend in the U.S.
Omthera (OMTH) shares were soaring 97.93% to $13.40, while AstraZeneca (AZN) was gaining 2.3% to $53.39 after AstraZeneca, the U.K. drugmaker, agreed to buy specialty pharmaceutical company Omthera for $12.70 a share, or about $323 million, a premium of 88% to Omthera's closing price on Friday of $6.77.
Valeant Pharmaceuticals (VRX) was surging 10% to $93 after Canada's largest drug maker announced it has agreed to acquire eye-care company Bausch & Lomb for $8.7 billion.Tiffany (TIF) was jumping 6.4% to $81.10 after the jeweler posted first-quarter earnings that beat expectations by 18 cents, at 70 cents a share, with revenues also exceeding estimates as same-store sales gained 8%. Royal Caribbean Cruises (RCL) was falling 0.89% to $35.81 after the rest of a Grandeur of the Seas cruise trip was cancelled after a fire broke aboard the ship. Another Grandeur of the Seas cruise scheduled for departure on May 31 was also cancelled due to the required repair work. Futures for the Dow Jones Industrial Average were adding 114 points, or 145.5 points above fair value, to 15,421. Futures for the Nasdaq were tacking on 27.75 points, or 29.9 points above fair value, to 3,020. U.S. stocks posted their first weekly decline in five weeks last week on concern the Federal Reserve may wind down its stimulus program. Chairman Ben Bernanke indicated Wednesday that the central bank may be ready to curb its bond buying if economic conditions improve. An unexpected contraction in China manufacturing activity further dampened sentiment, contributing to the Nikkei's 7.3% plunge on Thursday. Considering global concerns, "the 1.1% drop in the S&P 500 last week was relatively subdued and once again confirms the resilience of the bull market in the U.S.," Ed Yardeni, New York-based chief investment strategist at Yardeni Research, said in a note. At 9 a.m. EDT, the S&P/Case-Shiller 20-city home price index is expected by economists to show a gain of 10.2% for March, up from 9.3% in February, according to a Thomson Reuters poll. The release will be followed by the Conference Board's Consumer Confidence Index at 10 a.m. A rise to 71.1 in May from 68.1 in April is expected. The DAX in Germany was rising 1.08%, while the FTSE 100 in London was gaining 1.67%. The Hong Kong Hang Seng finished up 1.05% and the Nikkei in Japan settled higher by 1.2%. July oil futures were rising $1.02 to $95.17 a barrel. June gold futures were diving $8.90 to $1,377.70 an ounce. The benchmark 10-year Treasury was down 2/32, lifting the yield to 2.057%. The dollar was up 0.03% to $83.73 according to the U.S. dollar index. Follow @atwtse Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.
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