US Stock Futures Inch Up, Driven By FACT, C
US stock futures held in a tight range today, as markets paused awhile after the run-up in prices from their one-year lows. While futures on S&P 500 remained unchanged at 1140.50, those on Nasdaq 100 gained 3 points to 1904.20. Meanwhile, Dow Jones Industrial Average futures moved up 4 points.
Investors have very little to focus on today, except for a smattering of merger news and wholesale inventory data that is due later. Markets would be busy examining a report by The Wall Street Journal mentioning the Fed’s opinion on how to signal the next rate move. However, in the next meeting, the Fed is not likely to rephrase its decision to keep interest close to zero for some time to come.
The main newsmakers were Facet Biotech (NASDAQ: FACT) and Citigroup (NYSE: C). With FACT agreeing to be bought by Abbott (NYSE: ABT) for $27 a share, its stock soared 56% to $25.34 in German trading. The offered price represents a 67% premium over yesterday’s closing price on the Nasdaq. The accord, approved by both the boards, is expected to close in Q2.
Meanwhile, C rose 1.8% to $3.89 in early New York trading after the bank was selling trust preferred securities. The Wall Street Journal quoted a person familiar with the offering as saying that the 30-year fixed-to-floating rate securities may initially yield about 8.875%. The source added that Citigroup plans to issue up to $2 billion of securities today in an effort to boost its capital after repaying bailout funds to the Treasury.
Crude oil futures remained flat at $81.45 a barrel, as a rise in Chinese imports offset an expected gain in US crude stockpiles. Japan's Nikkei average also ended flat today and the same holds true for European stocks so far in morning trade due to lingering concerns over the region's sovereign debt.
Read more from Benzinga's Markets.
