Stock Futures Edge Higher, Asian Markets Slide
Bloomberg News
Stock futures edged higher despite a steep decline in Asian equities following disappointing factory data from China.
S&P 500 futures gained 0.02%, Dow Jones Industrial Average futures were up 0.02%, and Nasdaq futures rose 0.08%.
China's Shanghai Composite fell nearly 2%, its lowest level in more than two weeks, after factory activity in October contracted. Manufacturing activity came in at a reading of 48.3 over the month, according to Caixin's purchasing managers' index, the eighth consecutive month of contraction. The sector, and broader economy, remains weak even as China's central bank cuts interest rates to reinvigorate growth.
The Hang Seng in Hong Kong slid 1.2%, while Japan's Nikkei tumbled 2.1%.
It was a similar situation in Europe where manufacturing activity remained weak for another month despite the European Central Bank's efforts to boost economic growth. Markit's manufacturing PMI for October rose slightly to 52.3, only just above the 50-level that indicates contraction. European markets were mixed.
Visa (V) - Get Report dropped by more than 1% after missing fourth-quarter estimates. The credit card company earned 62 cents a share over the quarter, shy by a penny. Visa also announced a deal to acquire Visa Europe in an agreement worth 21.2 billion euros ($23.4 billion).
Dyax (DYAX) shares soared 35% in premarket trading after Shire (SHPG) - Get Report agreed to acquire the drugmaker for $37.30 a share, or $5.9 billion, a 35.5% premium to Dyax's Friday close. The deal gives Shire access to Dyax's experimental drugs to treat inflammatory diseases that hamper breathing.
Chipotle (CMG) - Get Report shares fell 5.5% in premarket trading after the company shut 43 restaurants in Oregon and Washington as investigations into an E.Coli outbreak continue. As of Saturday, there have been three cases in Oregon and 19 in Washington have been reported.
Sprint (S) - Get Report announced plans to cut fiscal 2016 costs by up to $2.5 billion as part of its turnaround efforts. The telecom will likely look to job cuts and cost controls to reduce its expenditure by 10%.
Hewlett-Packard (HPQ) - Get Report will officially become two companies on the New York Stock Exchange after a long process of separation. Hewlett-Packard Enterprise 'HPE', led by Meg Whitman, contains the data storage and servers business, while Hewlett-Packard will consist of its PC and printers units.
Loews (L) - Get Report shares were on watch after a disappointing third quarter. Adjusted profit of 50 cents a share missed forecasts by 9 cents, while quarterly revenue slumped 10%.