Stock fu­tures flat af­ter M&A flurry as in­vestors cau­tious in New York

The Pak Banker - - International -

NEW YORK: Stock in­dex fu­tures were flat on Mon­day as in­vestors awaited data on per­sonal spend­ing for a sig­nal the econ­omy can avoid a dou­ble-dip re­ces­sion and af­ter a flurry of merg­er­sand-ac­qui­si­tion ac­tiv­ity.

France's Sanofi-Aven­tis (SASY.PA) dis­closed a cash of­fer of $18.5 bil­lion, or $69 per share, for Gen­zyme Corp (GENZ.O) af­ter fail­ing to start merger talks with the U.S. biotech­nol­ogy com­pany. Gen­zyme's board re­jected the pro­posal.

Shares of Gen­zyme rose 4.1 per­cent to $70.40 in pre- mar­ket trad­ing, and U.S.-listed shares of Sanofi (SNY.N) were up nearly 1 per­cent to $29.17.

Ger­man chip­maker In­fi­neon Tech­nolo­gies AG (IFXGn.DE) agreed to sell its wire­less unit to In­tel Corp (INTC.O) for $1.4 bil­lion, en­abling the U.S. chip­maker to boost its pres­ence in the smart­phone mar­ket.

In­tel shed 0.1 per­cent to $18.35 in pre­mar­ket.

"In­vestors are be­ing a tad ap­pre­hen­sive as the mar­ket has had a very fickle per­son­al­ity as of late," said An­dre Bakhos, di­rec­tor of mar­ket an­a­lyt­ics at Lek Se­cu­ri­ties in New York. "In ad­di­tion to the M&A, the mar­ket is look­ing for an ex­tra rea­son to come off the side­lines."

At 8:30 a.m. EDT July per­sonal in­come and con­sump­tion data as well as core PCE data is due. Wall Street ex­pected con­sump­tion to rise 0.3 per­cent ver­sus no change in June.

"Any data show­ing an in­crease in eco­nomic ac­tiv­ity would help stave off any re­ces­sion­ary themes play­ing out in the mar­ket," added Bakhos.

Dell Inc (DELL.O) said it is as­sess­ing a bid for data stor- age com­pany 3PAR Inc (PAR.N) af­ter 3PAR's board said late Fri­day that Hewlet­tPackard Co's (HPQ.N) $2 bil­lion of­fer was a "su­pe­rior pro­posal".

Co­gent Inc (COGT.O) shares were halted in pre­mar­ket af­ter 3M Co (MMM.N) agreed to ac­quire the maker of fin­ger­print iden­ti­fi­ca­tion sys­tems for $943 mil­lion, or $10.50 per share.

S&P 500 fu­tures slipped 0.5 point and were slightly be­low fair value, a for­mula that eval­u­ates pric­ing by tak­ing into ac­count in­ter­est rates, div­i­dends and time to ex­pira- tion on the con­tract. Dow Jones in­dus­trial av­er­age fu­tures lost 11 points, and Nas­daq 100 fu­tures fell 1 point.

Euro­pean shares were lit­tle changed in thin trad­ing Mon­day, with per­sis­tent con­cerns about the sus­tain­abil­ity of the global eco­nomic re­cov­ery weigh­ing on sen­ti­ment.

In Asia, Ja­panese shares ended 1.8 per­cent higher but gave up strong early gains af­ter the Bank of Ja­pan made only mi­nor tweaks in pol­icy, dis­ap­point­ing mar­kets look­ing for more ag­gres­sive ac­tion against de­fla­tion. -Afp

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