Filed under: Before the bell, International markets, Earnings reports, Deals, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Pfizer (PFE), Market matters, Yum Brands (YUM), Economic data
U.S. stock futures were a tiny higher Monday morning, indicating a flat to somewhat higher on Wall Street. Investors, preparing for a week full of economic reports, will still likely focus today Microsoft (NASDAQ: MSFT)’s unsolicited $44.6 billion bid for Yahoo! (NASDAQ: YHOO) and how this story unfolds.
On Friday, U.S. stocks rallied after the news of Microsoft’s bid for Yahoo surfaced. Investors seemed to ignore a much weaker than expected jobs report. The Dow industrials completed up 92 points, or 0.73%, the S&P 500 added 16 points, or 1.22%, and the Nasdaq Composited ended 23 points higher, or 0.98%.
This day, only one data point is due for release. At 10:00 a.m., EST, the Commerce Department will report on December factory orders, which is expected to rise 2%, versus the 1.5% gain in November.
This week brings a slew of reports, including readings on productivity, retailers, home sales and wholesale inventories.
But, no doubt, investors will focus on the developments in Microsoft - Yahoo! potential deal. Over the weekend, rival Google Inc. (NASDAQ: GOOG) posted a statement in its official blog, critical of the deal, saying it’s a threat to the openness and innovation of the World wide web. Also, according to the Wall Street Journal, Google offered Yahoo a hand in thwarting the Microsoft bid that could come about if Yahoo! outsources advertising to Google. I’d say that a deal like this would then seem like Google is the threat to openness and innovation… In any event, shareholders seem to favor the Microsoft deal for now, but no decision has been made. Yet.
Overseas, Asian stocks, led by China rallied. European stocks were also higher by midday. The AP reports that oil prices steadied Monday below $89 a barrel, “as traders weighed gains in global stock markets against worries of a possible U.S. recession that would stunt oil demand.”
Late Friday, Pfizer Inc (NYSE: PFE) suffered a setback when the FDA said its anti-smoking drug Chantix appears increasingly likely to be linked to serious psychiatric behavior, including suicide.
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