By Saumya Vaishampayan
U.S. stocks were poised for a higher open Monday, following two
straight weeks of losses.
Gains in European stocks and deal news helped lift stocks in
premarket trade.
Dow Jones Industrial Average futures rose 59 points, or 0.3%, to
17708. S&P 500 futures gained seven points, or 0.4%, to 2042
and Nasdaq-100 futures added 14 points, or 0.3%, to 4215. Changes
in stock futures don't always accurately predict moves in the stock
market after the opening bell.
Stocks fell Friday, with the major indexes posting their second
consecutive week of declines. For the week, the Dow lost 0.5% to
17737.37 and the S&P fell 0.7% to 2044.81.
Investors are turning their attention to fourth-quarter earnings
season, which unofficially kicks off Monday when Alcoa Inc. reports
after the bell. Earnings for companies in the S&P 500 are
expected to rise about 1%, according to the latest data from
FactSet. That would mark the weakest quarter of profit growth since
2012's third quarter, as companies deal with sharply lower oil
prices and a stronger dollar.
"Investors will be eyeing very carefully the stronger dollar's
impact" on earnings, said Peter Cardillo, chief market economist at
broker-dealer Rockwell Global Capital.
Deal news attracted attention in premarket trade. Roche Holding
AG agreed to pay $1.03 billion for a stake of up to 56.3% in
Foundation Medicine Inc. Shares of Foundation Medicine surged 108%
in premarket trading.
Shire PLC is buying NPS Pharmaceuticals Inc. for $5.2 billion.
NPS Pharmaceuticals makes treatments for rare diseases. U.S.-listed
shares of Shire fell 1.8% premarket, while shares of NPS jumped
8.5% premarket.
European stocks gained, pushing the Stoxx Europe 600 up 1%. The
euro fell 0.4% to $1.1794, driven by the divergence in monetary
policy between the Federal Reserve and European Central Bank.
In commodity markets, crude-oil futures fell 2.9% to $46.97 a
barrel. Gold futures added 0.3% to $1219.70 an ounce.
Action was muted in the Treasury market. The yield on the
10-year note inched down to 1.965% from 1.975% on Friday. Yields
fall as prices rise.
No economic releases are scheduled for Monday. Later in the
week, investors will look for data on retail sales and consumer
sentiment.
Among individual stocks, Bristol-Myers Squibb Co. shares rose 6%
premarket after the company said a late-stage study of its
skin-cancer drug Opdivo met its primary endpoint. Bristol-Myers
Squibb also said it would end the trial early.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
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