BEFORE THE BELL:US Stock Futures Near Flat





U.S. stock futures were little changed Friday, with a multinotch downgrade of Ireland's debt providing a focus as investors also awaited data on leading indicators./

Futures for the Dow Jones Industrial Average recently rose 2 points to 11433. However, S&P 500 futures were off half a point to 1238, and futures for the Nasdaq 100 fell 2 points to 2217.25.

As the last full trading week of the year winds down, strategists said volumes were thinning out.

"There's no incentive to buying stocks right now," said Philip Shaw, chief economist at Investec Securities. "A lot of money has been taken off the table. It's more a matter of getting the positions you want for the new year."

"There's certainly an end-of-year feel in markets at the moment and it's really only the odd one or two events that are generating any sort of market movements," he added. "European debt is one of those."

Markets in Europe gave way to selling toward midday as Moody's Investors Service cut Ireland's credit rating by five notches to Baa1 from Aa2.

While the move was mostly expected, Shaw noted it still had an impact, with credit spreads for peripheral debt widening out.

"The impact could be felt in the opening hours of U.S. trading," he said.

U.S. stocks finished higher on Thursday, lifted by upbeat economic reports and a cheerier forecast from FedEx Corp. (FDX).

The Dow Jones Industrial Average (DJI) rose 41.78 points, or 0.4%, to 11,499.25.

In Washington, the U.S. House of Representatives narrowly passed a two-year extension of tax cuts dating back to the presidency of George W. Bush just before midnight on Thursday, following weeks of intense debate. The bill has already passed a Senate vote. Analysts said this event largely went as expected and was unlikely to have much market impact.

Data on tap for Friday include leading economic indicators for November due at 10 a.m. Eastern time.

On the corporate front, shares of AstraZenca PLC (AZN) fell nearly 6% in preopening trade after the firm was dealt a blow by the U.S. Food and Drug Administration over its Brilinta blood-thinning drug.

The FDA has asked for additional analysis related to a study on the drug, a move which may hold back final approval of the drug by at least six months.

Oracle Corp. (ORCL) shares rose 4.7% in premarket trade after the software group beat analysts' expectations with its second-quarter report late Thursday.

Shares of Research in Motion Ltd. (RIMM) gained 1.8% in premarket trade after the group beat forecasts for third fiscal-quarter earnings, aided by buoyant sales for its BlackBerry smartphones.

Also reporting late the prior session, Take-Two Interactive Software Inc. (TTWO) said it swung to a profit for the quarter ended Oct. 31, helped by upbeat sales of a key basketball game and other video games.

European stocks shifted mostly weaker, led by heavy losses for AstraZeneca, while banks were also weak, taking no inspiration from the German Ifo Institute's business-climate gauge, which ended 2010 at a record high.

Markets will continue to watch a summit in the EU, which wraps up Friday. A day earlier, leaders in Brussels said they would amend an EU treaty to allow for the creation of a permanent rescue fund for countries to counter sovereign-debt issues.

In Asia, Taiwanese stocks hit a 31-month high on a continuation of fund flows, while Chinese stocks struggled amid still-present concerns of an official tightening of interest rates.

Gold for February delivery was flat at $1,371 an ounce, while crude-oil futures for January delivery slipped 61 cents to $87.09 a barrel.

-Barbara Kollmeyer; 415-439-6400; AskNewswires@dowjones.com

Among the companies whose shares are expected to actively trade in Friday's session are Marshall & Ilsley Corp. (MI), AstraZeneca PLC (AZN) and InterMune Inc. (ITMN).

Bank of Montreal (BMO) will acquire Marshall & Ilsley in a stock-for-stock deal valued at about US$4.1 billion, further strengthening the Canadian bank's position in the U.S. Midwest. Marshall & Ilsley gained 25% to $7.23 in premarket trading. News of the deal also is helping push up other money-losing regionals. Premarket Regions Financial Corp. (RF) climbs 7% to $6.57 and Zions Bancorporation (ZION) adds 4.5% to $22.32.

AstraZeneca's new blood-thinning drug Brilinta has again failed to win approval from U.S. regulators, jeopardizing new revenue the group needs to offset the impact of expiring patents on some of its top-selling products. Shares of the U.K.-based drug maker fell 5.5% to $46.51 in premarket trading.

InterMune said a panel from the European medicines regulator gave a positive opinion on its application to market its pirfenidone treatment for the fatal condition known as idiopathic pulmonary fibrosis. Shares more than doubled premarket, up 115% to $30.61.

Oracle Corp.'s (ORCL) fiscal second-quarter earnings rose 28% as the business-software giant continued to see strength in both its traditional software side and its new hardware business. Shares were up 4.2% at $31.55 premarket as the results beat the company's guidance.

Two Harbors Investment Corp. (TWO) announced plans to offer 10 millions shares of its common stock. Shares of the real estate investment trust fell 3% to $9.45 in premarket trading.

Massey Energy Co. (MEE) is looking at options including a sale of the company or a takeover of Wilbur Ross's International Coal Group Inc. (ICO), Bloomberg News reported Friday on its website, citing three unnamed people with knowledge of the matter. International Coal's shares surged 7.5% to $7.50 in premarket trading.

Research In Motion Ltd.'s (RIMM, RIM.T) fiscal third-quarter earnings rose 45%, topping its own targets, as revenue increased and the company said it shipped a record number of its BlackBerry smartphones. The company also forecast current-quarter earnings and revenue above analysts' view. Shares rose 2.7% premarket to $60.85.

Accenture PLC's (ACN) fiscal first-quarter earnings rose 20%, beating analysts' estimates, as the company's revenue improved. Accenture also raised its current-year forecast and gave a current-quarter revenue view that was above analysts' estimate. Shares rose 4.5% to $48.75 premarket.

Take-Two Interactive Software Inc. (TTWO) swung to a fiscal fourth-quarter profit as the company posted sharply higher sales of its critically acclaimed titles. The videogame maker gained 6.4% to $12.70 premarket.


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Smart Modular Technologies WWH Inc.'s (SMOD) fiscal first-quarter earnings jumped 74%, with adjusted results topping its own forecasts, as sales increased sharply. But the company also forecast current-quarter earnings below analysts' estimate.

Quiksilver Inc.'s (ZQK) fiscal fourth-quarter loss sharply widened as the outdoor-sports outfitter booked almost $45 million in charges and saw revenue slide again. In the just-begun fiscal year, Quiksilver expects slight growth in revenue, though it warned visibility is limited. For the current quarter, it expects revenue to fall about 5%. Analysts polled by Thomson Reuters projected flat sales for the year and a 6% drop.

Franklin Resources Inc. (BEN) boosted its quarterly dividend and announced plans to buy back up to an additional 10 million shares, joining the ranks of companies looking to return value to shareholders.

Pilgrim's Pride Corp. (PPC) appointed poultry veteran William W. Lovette as chief executive to succeed Don Jackson, who is departing to take the top post at JBS USA, the poultry producer's parent.

Prestige Brands Holdings Inc. (PBH) agreed to buy the Dramamine brand of motion-sickness medicine from Johnson & Johnson (JNJ) unit McNeil-PPC Inc. for $76 million cash.

Steelcase Inc.'s (SCS) fiscal third-quarter earnings rose more than expected from the office-furniture company's break-even bottom line a year earlier, as revenue gains bested its guidance.

Yahoo Inc. (YHOO) said on Thursday it is planning to shut down several "underperforming" and "non-core" Web properties as it continues a years-long turnaround effort.