Stocks Set To Open Lower After 3-Day Rally (ZOLL, TUDO, YOKU, ANTH, GMCR, SBUX, TIF, C, BAC)
U.S. stocks signaling a weak open after posting solid gains in the past couple of sessions as China’s exported less than expected and ahead of Eurogroup meeting scheduled for later today.
Futures on the Dow Jones Industrial Average slid 46 points to 12,885. Futures for the Standard & Poor’s 500 index gained 0.40 pints 1,373 and Nasdaq 100 futures fell 4 points to 2,645.
Stocks closed higher for the third session on Friday on upbeat jobs data for the month of February in addition to Greece’s success over bondholders deal. The U.S. economy created 227,000 jobs in February while hiring in January and December was revised up by a combined 61,000, the Labor Department reported Friday, topping Economists’ estimates of 213,000 jobs last month. Jobless rate during the month remained at 8.30%, in-line with estimates.
Later today, investors would focus on the Eurogroup meeting, scheduled to discuss deploying the final approval for Greece’s second bailout. Spain could also be a focus after the government remarked it will not achieve 2012 budget deficit targets. Media reports said economy minister Luis de Guindos is expected to explain the overshoot at the Brussels meeting.
In absence of economic data for Monday and the corporate calendar is not much, so the focus is expected to fall on overseas markets.
In the merger & acquisition news, ZOLL Medical Corporation (NASDAQ:ZOLL) shares soared over 23% in the pre-market session after the company was agreed to be acquired by Japan’s Asahi Kasei Corp. in exchange of for $93 a share, or $2.21 billion, via a tender offer. Zoll’s board has approved the offer.
Also, Tudou Hldg Ltd (ADR)(NASDAQ:TUDO) shares are popping up over 178% as the company reached a deal to be acquired by Youku Inc (ADR)(NYSE:YOKU) in an all-stock deal. Shares of YOKU also climbed over 10%.
In the corporate news, Anthera Pharmaceuticals Inc (NASDAQ:ANTH) shares slumped over 55% in the pre-open session after the company decided to stop a Phase III clinical study of a potential treatment for acute coronary syndrome, after an independent board monitoring data from the study cited a lack of efficacy.
Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) is rebounding slightly after falling about 16% in the prior session as Starbucks Corporation (NASDAQ:SBUX)’s new espresso brewer could pose a big competitive threat.
Tiffany & Co. (NYSE:TIF) could be in action as well after it filed against Swiss watchmaker Swatch Group in a dispute over a joint venture.
In the financial space, Citigroup Inc. (NYSE:C) slid 0.61% and Bank of America Corp (NYSE:BAC) slumped 1%.