NEW YORK (TheStreet) -- Stock futures were pointing to a higher open on Wall Street Monday as July and the second half of the year began, buoyed by gains in the international markets and as investors awaited economic reports including the ISM Manufacturing Index.
Futures for the S&P 500 were rising 7.25 points, or 6.77 points above fair value, to 1,606.5. Futures for the Dow Jones Industrial Average were adding 70 points, or 66.4 points above fair value, to 14,894. Futures for the Nasdaq were tacking on 18.75 points, or 17.85 points above fair value, to 2,920.
U.S. stocks fell Friday extending June's decline to 1.5%, the first monthly retreat for the S&P 500 since October as investors struggled to sort through the mixed messages from Federal Reserve officials about a timeline for curbing the central bank's stimulus measures.
"With earnings season just around the corner, future Fed policy uncertain, and economic data still mixed, we suggest volatility is likely to remain relatively high in the seasonally weak summer months," Gina Martin Adams, New York-based senior analyst at Wells Fargo Securities, said in a note. But she wrote that she's sticking to her defensive and domestic sector recommendations, with an overweight rating on financials, health care and consumer staples.Onyx Pharmaceuticals ( ONXX ) was surging 50.89% to $131 in premarket trading. The company confirmed receipt of a takeover offer from Amgen ( AMGN ) valued at $120 a share but said the bid was too low. Onyx said Sunday it will now seek competitive bids from other interested acquirers. Amgen's $10 billion offer is a 38% percent premium to Onyx's closing stock Friday of $86.82. Onyx said Amgen's offer "significantly undervalued" the company. 3M ( MMM) was slipping more than 1% to $108.10 after analysts at Morgan Stanley cut the multinational conglomerate to "equal-weight" from "overweight," explaining that upbeat expectations for the stock have been baked in for the most part following its "notable outperformance." Insmed ( INSM) was plunging nearly 29% to $8.50. An experimental, once-daily antibiotic from Insmed was statistically equivalent to a currently approved, twice-daily antibiotic from Novartis ( NVS ) in treating cystic fibrosis patients with serious lung infection, according to results from a phase III study announced Monday. Nokia (NOK) was popping 6.95% to $4. The Finnish smartphone maker, agreed to buy Siemens' stake in a joint venture the companies have for telecommunications equipment. Nokia will pay €1.7 billion ($2.2 billion) to get full control of the venture, Nokia Siemens Networks, the companies confirmed Monday. The Institute for Supply Management is expected to say at 10 a.m. EDT that the ISM Manufacturing Index rose to 50.5 in June from 49 in May. At the same time, the Census Bureau is forecast to report that construction spending increased 0.6% in May after edging up 0.4% in April. Investors were also looking ahead to the unofficial start to the second-quarter earnings season on July 8, with Alcoa's (AA) earnings report as well as the official June nonfarm payrolls report this Friday. The European markets were higher after Markit's final eurozone Purchasing Managers' Index showed an increase to a 16-month high of 48.8 in June from May's estimate of 48.3. The FTSE 100 in London was rising 0.88% and the DAX in Germany was gaining 0.34%. The Nikkei 225 in Japan increased to a one-month high Monday, settling up 1.28% to 13,852.50 as investors were encouraged by an upbeat business sentiment survey, and Prime Minister Shinzo Abe and the Bank of Japan's aggressive stimulus measures. The Shanghai Composite showed resiliency, erasing earlier losses despite concerns about a slowing economy to settle at a one-week high, up 0.81% to 1,995.24. Overnight, the final estimate on the China HSBC PMI for June fell to a nine-month low of 48.2. The Hong Kong markets were closed for a public holiday. The benchmark 10-year Treasury was falling 9/32, boosting the yield to 2.523%. The dollar was down 0.02% to $83.12 according to the U.S. dollar index. August gold futures were up $13 to $1,236.70 an ounce. August crude oil futures were rising 68 cents to $97.24 a barrel. Follow @atwtse Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.>.
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