MARKET SNAPSHOT: Merger Monday Sets U.S. Stocks On Track For Gains
October 24 2016 - 8:24AM
Dow Jones News
By Victor Reklaitis, MarketWatch
Deal news for AT&T-Time Warner, B/E-Rockwell Collins,
Ameritrade and more
U.S. stock futures on Monday pointed to a higher open, getting a
lift from AT&T's planned buyout of Time Warner and additional
deal news.
Investors are waiting for fresh readings on manufacturing
activity and the Chicago Fed National Activity Index, as well as to
react to earnings from wireless carrier T-Mobile US Inc.(TMUS) ,
apparel company VF Corp.(VFC) and Huggies diapers producer
Kimberly-Clark Corp.(KMB)
Several Federal Reserve officials are also due to speak.
S&P 500 futures gained 9.30 points, or 0.4%, to 2,144, while
Dow Jones Industrial Average futures rose by 79 points, or 0.4%, to
18,145. Nasdaq-100 futures tacked on 29 points, or 0.6%, to
4,872.25.
Last week, the S&P 500 gained 0.4% for the week
(http://www.marketwatch.com/story/us-stocks-set-for-down-day-with-ge-mcdonalds-earnings-ahead-2016-10-21),
ending a two-week losing streak and finishing 2.2% below its
mid-August record close.
"Despite strong earnings reports, U.S. indices increasingly look
like they are coming under distribution, particularly the SPX 500,
which appears to be completing a head and shoulders top," said
Colin Cieszynski, chief market strategist at CMC Markets, in a
note. A head and shoulders pattern
(http://www.investopedia.com/terms/h/head-shoulders.asp) is a
bearish chart formation.
"Part of the headwinds for stocks may be coming from continued
gains by the USD, although the dollar index is starting to look
exhausted," Cieszynski added.
See: How the almighty dollar will tell you where stocks are
going next
(http://www.marketwatch.com/story/how-the-almighty-dollar-will-to-you-where-stocks-are-going-next-2016-10-21)
Individual movers: Shares in HBO and CNN parent Time Warner
Inc.(TWX) fell 0.5% in premarket action, as an earlier gain
evaporated. The moves follow news over the weekend that AT&T
Inc.(T) has reached a deal
(http://www.marketwatch.com/story/att-reaches-deal-to-buy-time-warner-for-80-billionplus-wall-street-journal-2016-10-22-14103223)
to buy the media company for $85 billion. The huge buyout looks set
to face opposition no matter who wins the U.S. presidential
election, with Donald Trump and Hillary Clinton both expressing
skepticism
(http://www.marketwatch.com/story/both-clinton-trump-wary-of-att-time-warner-merger-2016-10-23).
Shares in B/E Aerospace Inc.(BEAV) jumped 17% premarket after
Rockwell Collins Inc.(COL) on Sunday announced a $6.4 billion deal
(http://www.marketwatch.com/story/rockwell-collins-in-64-billion-deal-to-buy-be-aerospace-2016-10-23)
to unite the two aerospace suppliers. Rockwell Collins was down
about 2%.
Brokerage TD Ameritrade Holding Corp.(AMTD) and Toronto-Dominion
Bank(TD.T)(TD.T) confirmed they have agreed to buy
(http://www.marketwatch.com/story/td-ameritrade-td-bank-announce-4-billion-scottrade-takeover-2016-10-24)
privately owned brokerage Scottrade Financial Services for $4
billion. Ameritrade's stock was up 1% premarket.
Insurer Genworth Financial Inc.(GNW) has agreed to sell itself
for $2.7 billion () to a Chinese investment firm, China Oceanwide
Holdings Group Co. (0715.HK) . Genworth was down 0.4%
premarket.
In earnings news, Kimberly-Clark was lower premarket
(http://www.marketwatch.com/story/kimberly-clark-shares-drop-after-earnings-miss-guidance-cut-2016-10-24)
after its quarterly profit missed forecasts, and VF Corp. dropped
after cutting its guidance
(http://www.marketwatch.com/story/vf-corp-shares-fall-after-guidance-slashed-2016-10-24).
T-Mobile was higher after posting better-than-expected profit
(http://www.marketwatch.com/story/t-mobile-shares-rise-5-after-company-posts-better-than-expected-q3-profit-2016-10-24).
Read more: Stock market this week looks to Apple, Google
earnings for jolt
(http://www.marketwatch.com/story/stock-market-looks-to-apple-google-earnings-for-jolt-2016-10-22)
Other markets: Oil futures traded lower following choppy action
as Iraq indicated it won't cut production
(http://www.marketwatch.com/story/oil-prices-fall-after-iraq-says-it-wont-scale-back-output-2016-10-24).
European stocks traded higher
(http://www.marketwatch.com/story/european-stocks-advance-with-spanish-shares-energized-by-political-deal-2016-10-24),
while Asian markets closed mostly with gains. Gold futures and a
key dollar index were slightly down.
Economic news: A September reading for the Chicago Fed National
Activity Index is slated to hit at 8:30 a.m. Eastern Time, and an
October figure for Markit's purchasing managers' manufacturing
index is due at 9:45 a.m. Eastern.
On the Fed front, New York Fed President William Dudley is
expected to give opening remarks at 9 a.m. Eastern at a conference
in New York on the Treasury market's evolving structure. Fed Gov.
Jerome Powell is scheduled to moderate a panel discussion at the
same conference at 1:45 p.m. Eastern.
St. Louis Fed President James Bullard is due to give a
presentation at 9:05 a.m. Eastern in Fayetteville, Ark., to the
Association for University Business and Economic Research, while
Chicago Fed President Charles Evans is expected to give a speech
and take part in a Q&A in the Windy City at 1:30 p.m.
Eastern.
(END) Dow Jones Newswires
October 24, 2016 08:09 ET (12:09 GMT)
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