U.S. stock futures climbed significantly higher Monday morning, pointing to a strong open on Wall Street following gains in overseas stock markets. With little in the way of economics data and earnings, investors mostly are following several potential deal news.Last week, with mostly encouraging economic data and generally better-than-expected earnings, the Dow reclaimed the 10,000 mark and remained above it despite the unemployment rate reaching 10.2%. It seems for now, the promise of a recovery and a Federal Reserve that's keeping stimulating policies are enough to boost sentiment.
Over the weekend, finance ministers and central bank governors of the Group of 20 major countries met in Scotland. They launched a "framework" in which they will discuss how to reduce trade and savings imbalances between nations, but as the terms were general, it's thought they might not agree on specific policies.
The result may be a continuation of heavy fund flows into emerging markets, boosting currencies there and the euro could rise as a result of central banks' action. The U.S. dollar may come under renewed pressure. Already, in early trading, the dollar fell sharply against the euro and British pound.
At least three deals are in the works in different stages:- Comcast (CMCSA) and GE (GE) have reportedly agreed on the worth of NBC Universal, thus clearing another hurdle. The value is reportedly around $30 billion.
- Kraft (KFT) bid for Cadbury (CBY), is expected to turn hostile, according to sources. The deadline for Kraft to make a formal offer is today or it has to walk away for six months.
- Northrop Grumman (NOC) on Sunday has sold its TASC consulting arm to two private equity firms Kohlberg Kravis Roberts and General Atlantic for $1.65 billion.
- Sprint Nextel Corp. (S) is preparing to pump at least $1.5 billion more into Clearwire Corp. (CLWR), the Wall Street Journal reported on Sunday
Meanwhile, oil prices climbed toward $79 a barrel Monday in after sinking 3% Friday. Today's move comes as Hurricane Ida threatens oil installations in the Gulf of Mexico.
Before the bell: Stocks futures steady ahead of GDP, housing data
Google's plan for netbook PCs moves higher into the clouds
So long peak oil, here comes peak uranium
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